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Strategy to enter Foreign Market

Strategy to enter Foreign Market. External and Internal Factors Phanthep Chatnarat Advisor – Samart I-Mobile PLC. ASEAN COMMUNITY 2558. อะไรจะเกิดขึ้นหลังจากปี 2558. ตลาดใหญ่ขึ้น

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Strategy to enter Foreign Market

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  1. Strategy to enter Foreign Market External and Internal Factors Phanthep Chatnarat Advisor – Samart I-Mobile PLC.

  2. ASEANCOMMUNITY 2558 อะไรจะเกิดขึ้นหลังจากปี 2558 • ตลาดใหญ่ขึ้น • อุปสรรคทางการค้าทั้งสินค้าและบริการลดลง (ภาษี/มาตรการกีดกันทางการค้าที่มิใช่ภาษี/การอำนวยความสะดวกทางการค้า) • เกิดฐานการผลิตร่วมกัน • การลงทุนระหว่างกันเพิ่มขึ้น • การแข่งขันเพิ่มขึ้น

  3. โอกาสและความท้าทาย

  4. โอกาสและความท้าทาย

  5. โอกาสและความท้าทาย

  6. AEC 2015

  7. ความร่วมมือด้านโทรคมนาคมและเทคโนโลยีสารสนเทศความร่วมมือด้านโทรคมนาคมและเทคโนโลยีสารสนเทศ

  8. ความร่วมมือด้านโทรคมนาคมและเทคโนโลยีสารสนเทศความร่วมมือด้านโทรคมนาคมและเทคโนโลยีสารสนเทศ ความร่วมมือด้านโทรคมนาคมและเทคโนโลยีสารสนเทศ • วัตถุประสงค์หลัก • เพื่อพัฒนา เสริมสร้างความแข็งแกร่ง และยกระดับความสามารถในการ • แข่งขันด้านไอซีที • เพื่อลดช่องว่างการพัฒนาด้านเทคโนโลยีสารสนเทศ (Digital divide)ภายในประเทศสมาชิก และระหว่างสมาชิกอาเซียน • เพื่อส่งเสริมความร่วมมือระหว่างภาครัฐและภาคเอกชน • เพื่อปรับปรุงโครงสร้างพื้นฐานด้านสารสนเทศ (Information Infrastructure) ในภูมิภาค

  9. ASEAN ICTMasterplan 2015

  10. ASEAN ICT Masterplan 2015 Strategic Trusts: • การปรับเปลี่ยนทางเศรษฐกิจ (Economic Transformation) • การเสริมสร้างพลังและการมีส่วนร่วมของประชาชน (People Empowerment and Engagement) • การสร้างนวัตกรรม (Innovation) • การพัฒนาโครงสร้างพื้นฐาน (Infrastructure Development) • การพัฒนาทุนมนุษย์ (Human Capital Development) • การลดความเหลื่อมล้ำทางดิจิทัล (Bridging the Digital Divide)

  11. การดำเนินการตาม ASEAN ICT Master Plan ในปีแรกเน้นในเรื่องต่อไปนี้

  12. Market Trend and Industry Overview

  13. Asia PacificWorld’s Largest Mobile Phone Market Market Focus • Asia Pacific has the highest number of mobile phone subscriptions of all world regions. • Subscription rate are high in populated countries like China, India, and Indonesia. • With the region's consumer spending on communications set to reach US$815 billion by 2015, urbanization and growing mobile Internet connectivity present opportunities for consumer services.

  14. Asia Pacific - Potential • Enhanced Internet connectivity, for example through the increasingly popular "smart phones", presents huge potential for marketing via mobile phones. Wide mobile coverage allows reaching consumers throughout the region, including also rural consumers. • Mobile phones could be used not only for communications, but also for consumer services such as money transfers (remittances) and other banking services, as is already the case in Africa.

  15. Trend Analysis To maintain the margin should make some“Differentiate” When new technology was developed, the method of handset usage is more variety than SMS and voice but expand to Social Networking, Chatting and multimedia device. Consumer treat handset not only as a phone but lifestyle device. • Rising of Local Brand due to China Products have improved their quality and efficiency and distributor want to make more margin. • Speed becomes the crucial critical success factor for handset industry. • Operator will deal direct to Factory instead of distributor like before. Application becomes the key consideration of handset purchase. So with high price competition it will make “ High Competition on Price With Lower Margin ” “Application and Platform” = “Differentiation” & “Recurring Revenue”

  16. I-Mobile as Device Management • Analysts expect the number of Asian smartphone users to reach 347 million by 2015, from 120 million in 2007. The proliferation of smartphones will open opportunities in marketing and consumer services through mobile broadband data.

  17. International SIM PLC. Business Structure Samart i-mobile PLC Multimedia Business Mobile Business International Business • Export Successful SIM Business Model • Handsets • Content • Media • Other Future Products • Retail Shop (i-mobile Shop, i-mobile Franchise Shop, i-mobile Franchise Kiosk) • Mobile distributor & Trading • i-mobile phone package • Mobile Solution • Provides Voice & Non Voice information / content through multi service channels / devices • Media Businesses: TV, Magazine, Electronic Billboard, Mobile Marketing • Special Event Organizer

  18. Before and After… You cannot discover the new oceans unless you have the courage to lose sight of the shore!

  19. Starting Ideas….. • How far can you grow the company in local market… • Saturated Market but still need additional Growth… • Why can’t we do it if others can… • Ummmm… What should we do now?

  20. Generic Options and investment structure for a growth strategy.

  21. Building up Strategy • To make a strategy base on theory is very easy but how to make a practical strategy ??? • We need more than theory…

  22. Something like BCG matrix… Growth (+) High Performer Potential • Product management • Optimize product mix • Cost control • Maintain growth and cost control • New product and service • Being branding agent: Total mobile multimedia experience • Local store marketing Profitability (+) Profitability (-) Lagging Stable • Improvement • Sales promotion & LSM • Fixed cost reduction • Relocate • Close • Maintain revenue • New product and service • Being branding agent: Total mobile multimedia experience • Cost control Growth (-)

  23. External & Internal Factors • Internal • People, People and People… • External • Economic, Market, Competitors, Government

  24. Market Entry : Malaysia • Population : 25.3 M. • Age Structure – Median age 24.6 years • 0-14 years: 31.8% • 15-64 years: 63.3% • 65 years and over: 4.9% • Ethnic Groups : • Malay 50.4%, Chinese 23.7%, Indigenous 11%, Indian 7.1%, Others 7.8% • Religions : • Muslim 60.4%, Buddhist 19.2%, Christian 9.1%, Hindu 6.3%, Confucianism, Taoism, other traditional Chinese religions 2.6%, other or unknown 1.5%, none 0.8% • Languages : • Bahasa Malaysia (Official), English, Chinese (Cantonese, Mandarin, Hokkien, Hakka, Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai

  25. How I started… • Get 20 MB… But all by myself… • Cafeteria at Celcom (TMI Group) is my working space for 3 Months… • Newspaper is my teacher… • Finally, I got the deals but…

  26. External Factors

  27. Barriers to entry new marketNew entrant’s view…

  28. Market Analysis Source : Company Analysis Source : Company Analysis • The category continues to grow healthily. (CAGR 7%) • Penetration rate already saturated that will reach 60% in 2007 • Approximately 80% of the market are the prepaid customers • Mobile Phone with high features have a significant growth since 2003 • Although GPRS & EDGE phone play the significant portion in the market, this category will start to erode when the W-CDMA (3G) come up in 2005

  29. Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid Existing Products New Products Existing Products We are here! New Markets

  30. I need partners… • Strategic Alliances is the best … • Who are the best partners then??? • Power, Big, Strong,……. Who???

  31. See what happened… • First medias and dealers conference… • Company breakeven in month 13 after started… • 1st year revenue USD 2M • 2nd year revenue USD 45M • 3rd year revenue USD 125M

  32. Brand building… Who is I-Mobile? KNOWLEDGE : How well-known the brand is ESTEEM : Regard for the brand RELEVANCE : Appropriateness of the brand to consumer needs DIFFERENTIATION : Distinctiveness of the brand Building the brand pillar

  33. Unrealized Potential Leadership Eroding Potential New Gauging Market / Competitiveness Brand Strength ( Relevance & Differentiation) We are here! Brand Stature ( Knowledge & Esteem)

  34. What is our positioning then…Suppose to be the same as Thai market???

  35. Create something new…

  36. Something to attack competitor …

  37. First Mover advantage…

  38. Internal Factors

  39. Studying the Corporate Culture TO - BE AS - IS • Fast • Friendly • Excellent communication • Professional • We want to be the best • Slow • Difficult to deal with • Poor communication • Not systematic • It’s okay not to be the best

  40. Relevance Differentiation Building the Corporate Culture Fast / Friendly Not Systematic Reliable NOW Slow / Difficult

  41. Know the concept but how… • We know where we want to be but how to implement that concept….. Unity in Diversity…

  42. Unity in Diversity… Journey Started…

  43. Unity in Diversity… Who do you see in this photos…

  44. Unity in Diversity… Building a house from whatever we have. But…. Not yet a Home…

  45. Unity in Diversity… I’m not the boss… Just part of the team…

  46. Unity in Diversity… Mixed well…

  47. Unity in Diversity… Happy ending after emotional broke down…

  48. Unity in Diversity…

  49. What motivate you… • The surprising value of being the best in the world… • Quit the wrong stuff… • Stick with the right stuff… • Have the guts to do one or the other…

  50. Q & A Success is a journey, not a destination.

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