Good security is everything when it comes to the prosperity of any sector. It does entail physical security and the security of various information in a given sector. Cybercrime is among the most trending security issues of late. The effects of cybercrimes are increasing with the increase in technological advancement. The criminals who do these activities come with different ways of doing their crimes to match the advanced technology or be higher than it. Overcoming Information Sharing Challenges in cyber defense exercises is a journal article written by four scholars. The scholars are Agne Brilingaite, Linas Bukauskas, Ausrius Juozapavicius and Eduardas Kutka. The article was published by Oxford university press on 28th January 2022. The article points to the lack of information sharing among the various cyber defense exercise bodies as the problem in dealing with cybersecurity issues.
The methodology used in the research was a case study method where the scholars used the two cases of the cyber security exercise to determine the attitudes that various specialists have regarding information sharing of the cybercrime issues (Brilingaitė et al., 2022). The research encourages cyber security specialists to collaborate by sharing various information regarding cyber threats on various platforms. When cyber threat information is shared among the specialists, it helps them develop a common solution by the specialists based on the popular information received. To address threats simultaneously in different countries, there has to be timely information upon detecting cybercrime activities.
Among the factors found by the researchers affecting the information sharing activities include not giving full focus on the technical task. This shows that the specialists concentrate on other tasks living out the tasks like those dealing with the reported files and documents. There is also a lack of the diverse skills required in handling shared information. The specialists must have the skills needed to disseminate the received information (Brilingaitė et al., 2022). They need first to understand the information before sharing the information with their fellow specialists. Lack of common vocabulary among the specialists is also another challenge. There is a presumption that every participant in the cyber defense exercise can understand the complex language used by these specialists, which is not the case.
Lack of knowledge on handling the various legal documents about cyber security is another challenge that affects the information sharing activities between the specialists of different countries. In most cases, every country has its procedures. Most of these cyber threat information sharing platforms are also not popular. This means that the specialists may not be aware of them, making it difficult to share various information about threats on those platforms (Brilingaitė et al., 2022). Multi-tasking makes it difficult for those tasked with ensuring that the information is passed. In some cases, various information-sharing channels need to be managed, making them difficult to maintain. Most participants in the cyber defense exercise also do not see the benefits of learning the information-sharing skills since it is considered local skills that may not be helpful at the international levels.
Pros of Authors’ Positions on the Issue
The authors’ positions concerning information sharing are important since, with information sharing on cybercrime activities, one can learn from other people’s mistakes. From these mistakes, they can develop proactive ways to prevent the issue before it reaches them. They can consolidate funds and employ the best team on time to develop methods by which they can make their organization immune to the type of shared cyber threat. Information sharing also allows for collaboration which speeds up the response to such threats (Wickr, 2021). The specialists will be ready on how to handle it, having known that it is a possible occurrence. This will make them also respond with immediate effect when they detect a similar threat to the shared one on their side. Information sharing is also believed to make everyone do their jobs better since they know what they need to do to avoid falling victims to the reported cyber threat activities.
Sharing of information also leads to a reduced cost of cyber security. Once an organization has identified a possible threat, it will do anything to avoid being a victim (Talamantes, 2021). This saves the cost that they could have spent dealing with the actual threat if it occurs. The organization can also strategically use its staff since the staff can be shifted to the points within the organization where they will have more impact on the prevention of the shared threat.
Cons of Authors’ Positions on the Issue
As much as information sharing has advantages, it is also accompanied by some disadvantages which may discourage organizations from its use in the fight against cyber security. Information sharing may expose the company or business to some liabilities through a lack of privacy. When other organizations know some of your weaknesses, they may use them against the organization that shared them to benefit themselves. Customers’ information may also be exposed to threats during information sharing, making this method not to be encouraged to fight cybercrimes (Wickr, 2021). When customer information is exposed, the customer may sue the company, which may give the company serious economic losses. For instance, the company will have to pay some fines given by the court; the company is also likely to lose many customers who may fear a similar case in the future, including the currently affected ones.
This method may also not be effective enough since not all companies may participate. For example, some companies feel that they are too small or have nothing to share with other companies when it comes to cybercrime activities (Audin, 2020). In a real sense, this is not true since every organization, however small it may be, experienced some threats that other big organizations may not have experienced but are also exposed to. Therefore, these organizations not taking part are likely to expose the other ones to the similar threat they experienced but do not say. This makes the method not to be effective enough in fighting cybercrime activities.
Many organizations may also be afraid of admitting their past attacks to other organizations (Wickr, 2021). The fear may be due to embarrassment in that they may feel that they were too weak to have been easily attacked cyber. Being afraid of sharing such kinds of information is another way that exposes the other organizations to the same threat since they may not be aware of such kinds of threats. Sharing data makes the organization lose control of the data and its consent role. Any shared data is likely to leave the organization’s information system. This makes it difficult for these organizations to control how the shared data is used by the parties they share it with. This makes many organizations not freely share information relating to cyber threats.
The use of anonymization has some limits in that the companies that may want to share their threat information through data anonymity still may not do so due to the weaknesses. The level of data analysis has increased. Even if data anonymity is to be used by the organization sharing the information, the shared information can still be analyzed, and the data is linked to someone (Audin, 2020). When the data are linked to the exact person, they can be negatively used to bring harm to the owner of the information acquired. This makes many organizations not share their data or threat information with other organizations for fear of being negatively used, making the method ineffective in dealing with cybercrime.
Recommendations
Instead of using information sharing to deal with cybercrime activities, I would recommend using other methods that do not expose the organizations to other threats. Organizations can use proactive methods such as backing up the data (Fintech Crimes Team, 2020). When data is backed up in safe servers or clouds, it becomes difficult to lose them and be accessed by any other unauthorized person. Organizations should ensure that they choose reputable companies that help them back up their data. Organizations can also install anti-malware or virus software. Some cyberthreats occur through this malware. Having antivirus will therefore reduce the chances of cybercrime that occur due to malware.
Organizations should also be smart with their passwords. They should ensure that they put passwords in every part of their devices where sensitive information is stored. The passwords should be strong with many characters that cannot easily be cracked (Fintech Crimes Team, 2020). The passwords may also be accompanied by biometric information such as fingerprints to make it difficult to crack. Passwords limit unauthorized personnel from accessing sensitive information that may be used against the organization. The organizations should also, at all costs, ensure that they avoid phishers. They should train their employees to ignore any links or emails that can be sent to the organization’s devices. These phishing links, when logged into, always lead to the extraction of the organization’s data which may be used by the criminals to harm the organization.
Nowadays, organizations depend on mobile phones for communication activities; they are easy spots for cybercrime activities. Therefore, organizations should ensure that they protect their smartphones, which can be used to access their information (Huber, 2019). They should not use wifi hotspots whose sources are unknown since this can also be used to extract information from the organization. The organizations should also ensure that they train their staff on the issues of cybercrime activities. They should have a basic knowledge of handling cybercrime activities. When employees are equipped with the basic required knowledge to handle cyber activities, it becomes easy to handle them whenever they occur.
In conclusion, information sharing is a good way to solve cybercrime activities, but various disadvantages also accompany it. Organizations should therefore switch to other methods of cybercrime security. For example, organizations can use passwords, train their employees, safeguard their smartphones, avoid using unknown Wi-Fi hotspots, etc. These types of precautions have no or little disadvantages and would therefore be preferred to use information-sharing methods.
References
Audin, G. (2020). Information sharing: Smart move? No Jitter. https://www.nojitter.com/security/information-sharing-smart-move
Brilingaitė, A., Bukauskas, L., Juozapavičius, A., & Kutka, E. (2022). Overcoming information-sharing challenges in cyber defence exercises. Journal of cybersecurity, 8(1), tyac001.
Fintech Crimes Team. (2020). Top 10 ways to prevent cybercrime. Fintech Crimes. https://fintechcrimes.com/top-10-ways-to-prevent-cyber-crime/
Huber, N. (2019). Top tips for preventing cybercrime. https://www.accaglobal.com/gb/en/member/discover/cpd-articles/business-management/cybercrimejul-cpd.html
Talamantes, J. (2021). Why is intelligence sharing important in cyber security? https://www.redteamsecure.com/blog/why-is-intelligence-sharing-important-in-cyber-security
Wickr. (2021). The pros and cons of threat information sharing. https://wickr.com/the-pros-and-cons-of-threat-information-sharing/
International Human Resources Management Sample College Essay
Introduction
The globe has changed dramatically as a result of globalization. Growth in the number of TNCs and their scale may be attributed to two factors: increased international competitiveness and more prospects for foreign investment. Developing business strategies in tandem with human resource management is essential to gaining a competitive edge. Organizations that are considering relocating their workforce to another country or area across the globe should consult with an expert in IHRM (International Human Resource Management) to assess the benefits and risks of doing so. Consistent human resource procedures are needed to allow the successful execution of business strategy by firms. In TNCs, one of the most crucial challenges for the practice of IHRM is how to manage the conflict between global integration and local response. Studies of multinational firms’ worldwide human resource management tactics and strategies often make use of the concepts of local receptiveness and global integration.
Integration and Responsiveness in the Context of IHRM
Global integration is the degree to which a business function of an MNE can be controlled and coordinated across borders. Control means making sure that the activities of subsidiaries match up with what the corporate center wants, while coordination means connecting units in different places. G.I. is operationalized in two ways: the integration methods and the results. It is defined as “the degree of efficacy in general of the use of integration modes” in terms of results when it comes to global coordination and control (Brewster, 2007). One of the most general definitions has been that HRM is a contested area with competing soft and harsh approaches. The gentle approach to human resource management is often connected with the Harvard Business School, namely the publications of Michael Beer and associates. The soft school stresses the significance of aligning H.R. policies with corporate strategy and the role of people as a source of competitive advantage via their dedication, flexibility, and quality. It emphasizes establishing employee loyalty by implementing a cohesive set of HRM rules. The notion of human development, which is key to soft HRM, is reminiscent of ‘all-American’ incentive theories.
The goal of multinational corporations, often known as MNEs, is to establish integration and control among their internationally scattered units while at the same time adhering to the specific local regulations of each host nation. This duality challenge in MNEs, which may be described as the simultaneous pursuit and accomplishment of integration and responsiveness while working across various local contexts, has been recognized as a fundamental strategic difficulty that an MNE has to address to be successful (Chung, 2018). MNEs are increasingly depending on concepts such as local responsiveness and global integration (L.R.) to record and evaluate the strategic choices in light of this concern. Furthermore, conceptual frameworks were adopted in human resource management (HRM) to study the global HRM strategies and practices employed by multinational organizations.
When attempting to define the environmental difficulties that a multinational firm is confronted with, local responsiveness and global integration were developed. As a framework for examining diverse international business strategies pursued by MNEs, the principles have dominated international business research. By adding the word ‘forces’ to the words, the writers were able to identify and categorize the environmental pressures that result in the comprehensive management approaches (Nkomo, 2011). The relevance of multinational consumers, the significance of multinational rivals, the intensity of investment and technology, the drive to reduce costs, universal customer requirements, and the availability of raw materials and energy are the elements that are associated with the pressures for G.I. As shown by these elements, the notion of G.I. focuses primarily on harnessing the advantages of size and scope across several units of an MNE.
In light of shifting geopolitical dynamics, multinational corporations’ political roles and the ethical position in their HRM practices are under scrutiny. The goal is to build an ethical research agenda for international human resource management (HRM). A worldwide HRM ethical research agenda will be developed (Chung, 2018). To provide a theoretical foundation for this plan, one can look to cosmopolitanism and differentiate between three primary perspectives: the social, the political, and the cultural. These viewpoints indicate a different understanding of the self–other relationship in the global environment. The ethical implications for multinational corporations, the study goal, methodological suggestions, and inherent limits are all three unique focuses of an ethical research agenda. When each perspective is applied to international human resource management (HRM), its core and ethical attitude are translated.
Effects of Integration and Responsiveness on how Organizations are Structured
A variety of issues influence an MNC’s IHRM strategy. This list includes the company’s degree of international expertise, how global subsidiaries are established, the technology, and the type of the MNC’s product or goods; host nation legislation and laws may limit IHRM’s ability to operate effectively. For example, in nations with a weak educational system, multinational corporations (MNCs) might be seen as a way to build up local knowledge, which is particularly true in developing countries (Cheng et al., 2021). Subsidiaries in impoverished countries and affluent nations confront radically different IHRM challenges. When there is a well-educated workforce with technical and managerial knowledge, there is a potential to establish polycentric or geocentric IHRM initiatives. As technologically enhanced goods and services become more prevalent, nations in emerging regions must have a more centralized IHRM policy. To be successful in the local market, certain items, such as food, must consider the host nation’s preferences.
Differentiation occurs when companies delegate authority and responsibility to various divisions and departments. Integrating all of a company’s many divisions under a single leader or a single goal is called integration. Both the company’s internal and external components need to be in harmony to integrate the organization successfully. When the company’s priorities are aligned, collaboration and cooperation are promoted across all its departments. Integration occurs when a firm unites its divisions under a single leader or a common goal (Redman and Wilkinson, 2009). The capacity of leaders to guide their teams is shown via the usage of integration and coordination in the workplace. Workers lose trust in their supervisors’ leadership talents when they aren’t on the same page and fail to execute corporate plans. As a result, companies do not have to replace or trash their whole infrastructure in order to keep their software up to date. For example, system integration helps businesses to continue using their existing infrastructure while integrating new technologies, software, and applications.
Effects of Integration and Responsiveness on the Nature of the Parent-Subsidiary Relationship
Regarding strategic orientations at the subsidiary level, the degree of integration and emphasis on localization varies greatly, as subsidiaries are scattered across several host nations. The integration-response (I.R.) paradigm is beneficial for developing and articulating the international strategy a company requires to flourish in an increasingly competitive global market. According to the I.R. framework, subsidiaries evaluate the costs and advantages of reacting to integration and localization before optimizing resource deployment (Jack and Westwood, 2006). Local responsiveness and global integration (I/R) are important international strategy frameworks at the subsidiary and corporate levels. Global integration is driven by economies of scope and size, emphasizing cost reduction via global standardization of production and distribution, which is why it is called global integration. A multinational firm’s subsidiary must adjust its operations to local market conditions to respond to local market conditions. MNEs can prioritize one dimension over the other or pursue both.
To achieve global integration, multinational corporations’ overseas subsidiaries use non-location-bound (NLB) free trade agreements based on home country-specific advantages (CSAs). Because they are based on host CSAs, location-bound FSAs are characterized by their ability to respond to local needs. Because Chinese parent companies lack NLB firm-specific advantages (FSAs), overseas subsidiaries of Chinese MNEs can only play a minor role in integrating these firm resources (Jack and Westwood, 2006). A more common strategy employed by Chinese multinational enterprises is to make acquisitions and mergers with international companies to acquire new strategic resources and assets. As a result of the added challenges these firms face due to being a Chinese MNE subsidiary in a foreign market, local responsiveness is more important than ever.
Because Chinese parent companies do not often have NLB FSAs, their subsidiaries are less likely to depend on the resources available at the parent level to develop a competitive advantage. Overseas subsidiaries are the primary determinant of local response because of their in-depth knowledge of local market circumstances. Foreign subsidiaries are generally responsible for local responsiveness, while H.Q.s are primarily responsible for global integration because of the requirement to internalize existing FSAs (Janssens and Steyaert, 2012). It is now possible for subsidiaries to make strategic decisions on reacting to existing local business orientations, accessible business opportunities, and complementing resources in the host countries to achieve performance objectives. Information about I/R frameworks that are now accessible was mostly developed by Western multinational firms operating in industrialized or developing nations.
Chinese multinationals’ foreign subsidiaries are forced to seek external resources and acquire strategic assets in technology and brands to compete in the local and worldwide markets. This is the case either because their parent companies have flaws or because no FSAs are globally transferable (McSweeney, 2020). Businesses operating in other countries must design a local responsiveness plan that considers distribution methods and sales, regulatory laws, local client needs, and market structures. By interacting with indigenous stakeholders, subsidiaries create learning capacity and new knowledge and build innovation in host countries. According to the “local responsiveness” strategy, local resources may be tapped, and subsidiaries can help them satisfy regulatory requirements and the local market’s demands.
Effects of Integration and Responsiveness on the Flow of Knowledge Across them
Inter-MNE trade in goods and services and large-scale lateral information exchanges are linked to the transnational strategy that blends global size and learning with locally adapted products and processes. This is because the transnational approach combines the advantages of learning and global scale with locally tailored processes and products. In addition, a global strategy allows some subsidiaries to develop as important centers for a particular product or technology (Chung, 2018). As a result, it is related to significant information exchanges between the subsidiaries and headquarters and between the subsidiaries themselves. In spite of this, each subsidiary participates actively in its own specialized local community of practice. When it comes to multinational MNEs, a significant competitive advantage is the capacity to link and use the company’s diverse knowledge bases. Consequently, subsidiaries are beneficiaries of information from the parent and significant contributors to the MNE’s resource base and competitiveness.
A company’s horizontal information sharing is made possible by a matrix structure, organizational competence, and collaborative culture. Networks and matrix structures have been utilized by companies to achieve high levels of local market reaction and coordination throughout the world. The most difficult coordination issues arise when implementing global initiatives. They entail considerable commerce, strategic coordination, and information sharing within and among organizations, not only between headquarters and subsidiaries (Cheng et al., 2021). There is a considerable degree of strategic and operational interdependence among the many MNE companies. A common organizational culture and organizational capabilities that fosters information sharing and collaboration are needed to enable the MNE to perform such sophisticated coordination, according to the proposed requirement for different organizational capabilities and formal structures. There are countries where it is difficult to transfer business concepts and tradeoffs between responsiveness and integration.
Knowledge management is critical when multinational corporations (MNCs) implement a localization plan. Knowledge is disseminated and created centrally throughout the organization via the home replication approach employed by MNEs. The capacity to absorb new information is a prevalent challenge in retaining knowledge. Knowledge-based actors that are entrepreneurially building new value-creating company possibilities need international integration and openness, informality, and heterarchy in associations (Nkomo, 2011). By creating a level playing field where reputation and contribution are more important than a person’s position in authority, knowledge may be sought, produced, and merged more effectively. Multinational corporations’ structural strategies have shifted significantly due to globalization. Global competition has led to the disintegration of value-added activities between MNEs and their suppliers and subcontractors. Because of this mega-trend, MNEs must effectively manage their global supply chain links with local suppliers.
Critical thinking and relevant information
Using IHRM, one may adapt more swiftly to changes and to the demands of decision-making. Using IHRM, one can keep tabs on the budget, screen and track potential hires, manage your workforce, assess training requirements and match your employees’ abilities to open positions, provide feedback, and more. Local responsiveness and global integration are substantially larger concepts than previously considered, particularly in international HRM research, according to a comprehensive literature study. To address the difficulties raised by a thorough literature analysis, empirical study into the different forms of global integration and local responsiveness, as well as the ways in which these modes are implemented by subsidiary and corporate HR players in MNEs, is definitely required.
Conclusion
There must be a greater focus on the strategic demands of an organization in order to fulfill both organizational and personnel objectives. The HR department’s principal issue is how to staff a global corporation. This necessitates workers with a wide range of talents, experiences, and other traits. These practices must be coordinated and controlled by the HRM department in order to represent the company’s worldwide features. Expats and local workers are paid and rewarded differently. It is important to consider the performance of workers when determining compensation and awards. Workers from different cultural backgrounds need to work together to create synergy. The HR department has additional difficulties when workers return to their home countries. Multinational companies should use training and development programs to help their staff grow and improve their ability to work together across different departments and divisions.
References
Brewster, C., 2007. HRM: the comparative dimension. Available at: https://doi.org/10.4337/9781849809191
Cheng, J., Chelliah, S., Teoh, A.P., 2021. The Effect of Subsidiary Characteristics on Efficiency in Knowledge Transfer between Multinational Companies. Journal of Entrepreneurship, Business and Economics 9, 230–274. Available at: <http://www.scientificia.com/index.php/JEBE/article/view/151>.
Chung, C., 2018. Making sense of global integration and local responsiveness in international HRM research. International Journal of Multinational Corporation Strategy 2, 153–175. Available at: https://doi.org/10.1504/IJMCS.2018.089656
Jack, G., Westwood, R., 2006. Postcolonialism and the politics of qualitative research in international business. Management International Review 46, 481–501. Available at: https://doi.org/10.1007/s11575-006-0102-x
Janssens, M., Steyaert, C., 2012. Towards an ethical research agenda for international HRM: A plural cosmopolitan framework possibilities. Journal of Business Ethics 111, 61–72. Available at: https://doi.org/10.1007/s10551-012-1478-0
McSweeney, B., 2020. Hofstede’s Model of National Cultural Differences and Their Consequences: A triumph of faith—a failure of analysis, in Organizational Collaboration. Routledge, pp. 122–134. Available at: https://doi.org/10.4324/9781315881201
Nkomo, S.M., 2011. A postcolonial and anti-colonial reading of ‘African’leadership and management in organization studies: Tensions, contradictions, and possibilities. Organization 18, 365–386. Available at: https://doi.org/10.1177/1350508411398731
Redman, T., Wilkinson, A., 2009. Contemporary human resource management: Text and cases. Pearson Education. Available at: https://www.researchgate.net/profile/Tom-Redman/publication/29464640_Contemporary_human_resource_management_text_and_cases_3rd_edition/links/09e4150d193168dc26000000/Contemporary-human-resource-management-text-and-cases-3rd-edition.pdf
International Marketing Plan Free Essay
1.0 Introduction
Cosmetic Y is a UK-based cosmetics company that specializes in a broad selection of vegan and plant-based products that are palm-oil free, skin-friendly, and organic. There are presents for the house as well as products for the bath and the face and body like soaps and oils. The firm was founded in 2016 as an environmentally friendly business initiative. Currently, it is looking to expand into the Thai market. According to the International Trade Administration (2019), the beauty and cosmetics business has grown quickly in the United States during the previous six years, with an expected annual growth rate of 7.2 percent to 7.9 percent. According to the analysis, the sector is expected to increase by 7.3% year through 2022. This industry is rising at a rapid pace, as per the Asian Development Bank.
2.0 Host Country Attractiveness
Defining the target market’s micro and macro environments is critical to market planning. This is accomplished by doing environmental scanning (Camilleri, 2018). The political, economic, and cultural elements of the host nation, in this instance Thailand, will be examined to achieve this goal.
Political Risks
As a constitutional monarchy based on parliamentary democracy, Thailand’s government is led by its Prime Minister (Nordea Trade, 2016). Foreign investors may be subject to new rules, additional taxes, administrative expenses, security and trade obstacles, as well as political stability threats from the government’s policies (Morgan et al., 2018). Thailand’s military-based administrations have played an important role in maintaining political stability, as shown by statistics from the Global Economy (2019), and the authority has also provided investment assistance (Banco Santander, 2019). It was given an A4 political risk rating, which indicates that the climate is now stable, but it is prone to abrupt changes, which might have a negative impact on corporate institutions (Global Edge, 2018). Additional threats are posed by the Thai Corruption Report (2020) identifying the police force as very dishonest.
Opportunities
- Presently, the nation is politically stable for companies to be set.
- There are very few competitors’ country.
Challenges
- Probability of political changes that may impact the business in future
- Possibilities of increased duty for foreign business
- A lot of research is needed for the business to thrive well
Economic Factors
Businesses are susceptible to political and economic risks when the economy is unstable, which is one of the most essential enabling conditions (Krasteve, 2016). In the CIA’s global factbook, Thailand’s economy has developed gradually over the last few decades. There is minimal unemployment and inflation in the nation, and the public and foreign debt are kept within reasonable limits. (CIA.Gov, 2019; the World Bank, 2020). The growth of the economy has been greatly aided by more tourism and improved infrastructure (Khalil, 2018). Due to their purifying properties, the goods have a large market among the country’s tourist population (Sunanta, 2020). The rate of inflation has risen in recent years and is expected to continue growing in the future. Inflation influences interest rates, according to Galal and Lan 2017.
Opportunities
· A big market for the brand is provided by the working population’s financial stability.
· Customer satisfaction and cheaper advertising expenses may be achieved with good infrastructure, which simplifies communication channels and delivery times.
· As the second-largest economy in Southeast Asia after Indonesia, Thailand has the potential and market for high-end products.
Challenges
- As inflation rises, the economy becomes more unstable, making the business results more unclear.
- Profits are overestimated as a result of currency fluctuations.
- Rate of interest are high making borrowing difficult.
Cultural Factors
Although the English is on the rise owing to globalization, Thai is still the most widely spoken language. Even if the language barrier must be overcome in order for a brand to enter the local market, it is still necessary to address this issue (Rahman et al., 2017). Tourists flock to Thailand to purchase the unique cosmetics and spa treatments that the country is renowned for (Shuhui, 2018). According to Taghipour and Loh (2018), brand loyalty in Thailand is impacted by the item’s natural and organic qualities. The company’s products are entirely natural and organic, which appeals to the strong desire of Thais for high-quality workmanship and to their common love of nature.
Opportunities
1) Thailand’s beauty goods industry is mostly comprised of visitors, thus the brand’s prospective consumer base will include both Thais and foreigners, hence expanding its market share.
2) The brand’s versatility allows for a variety of pricing methods.
3) The plant-based brand has a competitive edge since it is aligned with the movement in customer tastes.
Difficulties
- When interacting with industry stakeholders, a language barrier may be a stumbling block.
- The tastes of consumers might alter throughout time.
- The target market’s acceptance of the items may be hindered by prejudices based on the country of origin.
3.0 Market Audit and analysis
Diffusion of innovations theory
Relative advantage, complexity, tangibility, compatibility and trialability are all characteristics of successful inventions (Flight, D’Souza, and Allaway, 2011). Natural, organic, and skin-friendly goods are a big part of the brand’s USP, which corresponds with contemporary customer preferences. Unlike other Asian beauty products, this one does not include palm oil. Exotic beauty items from industrialized nations are regarded as high-quality in Thailand because of their compatibility. United Kingdom has invested much in beauty, personal, and skin care goods (Statista.com, 2020). Because of the industry’s complexity, not all companies are able to create items that are all-natural, safe, and of the highest possible quality. Beauty products, on the other hand, are really easy to use and don’t need a high level of technical expertise.
Trialability alludes to the simplicity with which consumers, particularly early adopters, may test-run the usage of the items. A good place to begin your marketing efforts is by offering free samples. In order to get into the market and overcome the language barrier, salespeople will be hired. Additionally, there will be pop-up spas where customers can learn about and test out the items. After utilizing the goods for a time, users will be able to provide true and authentic testimonies about how the products have improved their skin’s appearance. Aside from early investors and innovators, the classifications of adopters also range from early majority to laggards (Im, and Young, 2012). Accordingly, combining the product lifecycles of adopters with the features of successful innovations as defined above provides several possibilities for commercial viability for a brand (Trotta, 2010). These are called “dynamic equilibrium” in the context of Rogers’s 2003).
The Market
If there is a market for a commodity in Thailand, the demographics is the best evidence of it. “As per Jinachai et al. (2016), Thailand is the most important ASEAN. The state’s competitiveness in the business has also allowed it to gain a foothold in foreign markets, where it sells its goods.
Geographical Location
As Thailand’s capital and most popular tourist destination, Bangkok is the ideal location for the company’s flagship shop. 5,000,000,000,000 people call the city home. There has been an increase in number of beauty salons in the city as a consequence of an increase in the city’s middle class and an increase in tourism (Wongtada & Kraikit, 2017). The volume of spas and massage parlours in Thailand is on the increase, with Bangkok possessing the most in the country (Sangpikul, 2019). CosmeticY’s body oils and washes will have a large customer base thanks to them. Jones and Pimdee (2017) found that products that prosper in Thailand have an edge across the rest of Asia because of its location.
Market Size
According to the International Trade Administration, Thailand’s beauty business generated $ 6.6 billion in 2018 and is anticipated to grow to $ up 8 billion by 2022.
Government Participation
As a way of encouraging new and current companies to succeed, the government offers grants and other forms of financial assistance (Turner et al., 2016). By promoting open markets that self-regulate, the Thai government promotes a favorable climate for investors. Regulating the spa business has given customers more confidence in the safety of the services and goods they receive (Dales et al. 2019; Kalayasiri, 2019).
4.0 Marketing Plan
Mode of Entry
Joint ventures, licensing, leasing, shipping, and direct investments are only a few options for breaking into international markets, according to Grogaard et al. (2019). It’s better to engage with local distributors of cosmetics and beauty goods to secure entry into Thailand and at least protect yourself from the political uncertainty that works against foreigners. Because the supplier seems to have a foothold in the sector, it’s an efficient approach to access a larger market and prospective customers (Hsu, 2018). Because of the language barrier, a local distributor will be a great help in getting your message over to the people on the ground. In order to keep CosmeticY’s high-quality image intact, a factory-owned retail store will be located in a high-end shopping mall.
Marketing Objectives
The brand’s target audience is the well-off and visitors. Thais aged 18 to 60 comprise 58 percent of Thailand’s population, making them an ideal target market for the business (CIA.Gov, 2019). Lixandru (2017) asserts that young people are more prone to experiment with and purchase beauty products, particularly skincare. As a result of the low income inequality, the middle class is growing as well. According to Lixandru (2017), this group prefers expensive, high-end beauty goods from other countries. Target market marketing goals are as follows:
- In the first year of growth, the company aims to gain a foothold in the high-end beauty product industry.
- In the first six months of operation, a standard pricing for the items should be established.
- Three years after the company’s launch, it will expand by opening more locations.
- Aim for the lower and middle classes as well as the well-to-do.
Product Adaptations
The product’s packaging will need to be tweaked somewhat to accommodate the Thai market by including both English and Thai ingredients and use instructions. The rest of the composition will not change. To demonstrate how successfully a product may be tailored to a growing product, the product component model divides its characteristics into the core, advertising, and support service components (Asseraf & Shoham, 2019).
Core component
Beauty brand Cosmetic Y uses only natural and organic components in its products, which nurture the skin. Bath, face and body scrubs are just some of the products that will be available in the main market.
Marketing Component
- The high pricing indicates a high-end product.
- The goods’ components are thought to be good for the skin.
- Moreover, the materials used in their manufacture are non-toxic.
- In addition, they are made from natural ingredients.
Support Service Constituent
- Referrals and purchases above a certain value are eligible for discounts.
- Customers are pleased with the level of service provided by this company.
- Well-trained employees who are knowledgeable about the brand
- A web-based customer service system
Distribution Strategy
Product variety and distinctiveness in comparable items are reasons why the brand would distribute and sell its products in Thailand. Some clients choose to use a whole range of skincare and grooming products in the beauty sector (Shuhui, 2018). Thailand will get all of the items made in the United Kingdom. To avoid the various logistical, labor and licensing issues that come with entering new markets, this is the best alternative. Shipping is a lower-cost option than air transport because of the complexity involved, the nature of the items, and the predicted profit margins.Customers will be able to buy straight from the company and via a distributor. Initially, the brand had just one retail location in a mall with strong foot traffic from both residents and visitors, as well as one major distributor. For the brand to preserve its high-end image, the direct sales strategy will provide it more control over how its products are presented to consumers (Kobayashi et al., 2017; Kotler et al., 2018). Helping the firm become established in local markets will be easier if a well-known distributor is working with the company (Garnesan & Durgamani, 2018). Local distributors avoid the disadvantages associated with grey markets, since distributors are compensated on a sales commission basis, which encourages more intense distribution. Direct sales and local distributors are combined in this hybrid approach.
Pricing Strategy
Price-skimming is the ideal method for beauty items that are entering new markets.. Price skipping is defined by Du & Chen (2017) as setting the price higher while entering a new market and gradually decreasing it. Customers’ willingness to pay for a product will be shown, and if they are unwilling to pay a higher price, the price may be reduced (Gomes et al. 2019). There is a belief that the more costly a beauty product is, the better it is thought to be (Vogel,2018). Foreign-based cosmetic products, particularly those from industrialized nations, seem to be highly prized by the Thai public. Many individuals are prepared to spend a lot of money on skin-friendly cosmetics because they want to look good.
Business Model Summary
It’s an explanation of how the company intends to develop, deliver, and enjoy the rewards of all of its commercial activities. Consider it in terms of the Environment, Strategy, Structure, and Operations (ESSO) business model (Nair, and Boulton, 2008). The company’s value offer includes in-house product development, which is directed by environmental analysis, development, and R&D in the UK as well as other potential markets. All finished items are sent to Thailand using low-cost logistical methods. Quality production, price skimming and digital content marketing are all used together to get a footing in the market by making the firm more sustainable in the long run. ‘The majority of the company’s revenue comes from the sale of its goods.
5.0 Conclusion
The overall economic success, government engagement in the business, and tourism all point to a positive future for the Thailand market. However, inflation and the introduction of additional foreign items into the market pose certain hazards, but the rewards outweigh them. The benefits of entering the market seem to exceed the disadvantages, according to the debate. The rise of the middle class is helpful to the brand since it gives a large market share. Investing now, when circumstances are good and returns may be substantial, is a wise move, especially if the appropriate marketing and pricing techniques are used. Additionally, it has been discovered that the current competitors aren’t using social media and other owned media advertising strategies, which would be a low-cost and highly successful marketing channel for the company’s products.
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