A New Business Order Looms With Asean Integration

[animatic]

its not an issue and yes it is more

but then again what company to do compare to Samsung?

I guess one of the other massive Japanese consumer electronics companies, or LG. But then again Samsung is so diversified into parts manufacturing also, it may be difficult to get a direct comparison.

Exactly

Well for one Sony, who Samsung just displaced as Asian #1 after decades of Sony at the top.

[phl]

its not an issue and yes it is more

but then again what company to do compare to Samsung?

I guess one of the other massive Japanese consumer electronics companies, or LG. But then again Samsung is so diversified into parts manufacturing also, it may be difficult to get a direct comparison.

Exactly

Well for one Sony, who Samsung just displaced as Asian #1 after decades of Sony at the top.

i do not think can, while both company's do many things alike, they also very different as a whole.

What i mean is sony is also into music, while samsung is also into chips.

I guess the most fair way is to compare the % of the budget each one spends on marketing and advertising

[kimamey]

I do not think OP fully understands the consequences to follow.

Yes Thai businesses will have to think outside the box, but owner of the business is NOT the only driving force behind the business, staff also need to perform.

The biggest challenge and problems for Thailand i see is an influx of foreign labor, wanting to work

Thai labor will either have to develop some work ethics or it may find itself out of work

Already most construction company's and factory's employ foreign labor, in many cases illegally, because locals do not want to work, in 3 years, when employing foreign labor will be legal, i see most if not all factories and construction company's going for the foreign work force and there will be no shortage of them, because even when their pay is lower than the locals, it is still more than they get back home.

Is one of the problems in the low skilled area the fact that the 300 Baht per day law is brought in it doesn't apply to foreign labour. Whilst this seems like favouring Thais it does the opposite. As I understand it some companies are considering moving to border areas where they can take advantage of foreign labour which doesn't have to be paid the 300 baht minimum.

I realise that there will always be illegal workers and employers who don't pay the minimum anyway but you can't enforce a law that isn't there. One other thing I've just thought of, does the ASEAN agreement stipulate that workers in a country must be treated equally. doubt it but it's a thought.

[phl]

I do not think OP fully understands the consequences to follow.

Yes Thai businesses will have to think outside the box, but owner of the business is NOT the only driving force behind the business, staff also need to perform.

The biggest challenge and problems for Thailand i see is an influx of foreign labor, wanting to work

Thai labor will either have to develop some work ethics or it may find itself out of work

Already most construction company's and factory's employ foreign labor, in many cases illegally, because locals do not want to work, in 3 years, when employing foreign labor will be legal, i see most if not all factories and construction company's going for the foreign work force and there will be no shortage of them, because even when their pay is lower than the locals, it is still more than they get back home.

Is one of the problems in the low skilled area the fact that the 300 Baht per day law is brought in it doesn't apply to foreign labour. Whilst this seems like favouring Thais it does the opposite. As I understand it some companies are considering moving to border areas where they can take advantage of foreign labour which doesn't have to be paid the 300 baht minimum.

I realise that there will always be illegal workers and employers who don't pay the minimum anyway but you can't enforce a law that isn't there. One other thing I've just thought of, does the ASEAN agreement stipulate that workers in a country must be treated equally. doubt it but it's a thought.

that is an excellent point. i think in 3 years we will see some serious changes and have a bad feeling Thailand did not think this one through.

even assuming they did, now is the time to start to prepare for it, where it seems to be going other way around

[hellodolly]

I do not think OP fully understands the consequences to follow.

Yes Thai businesses will have to think outside the box, but owner of the business is NOT the only driving force behind the business, staff also need to perform.

The biggest challenge and problems for Thailand i see is an influx of foreign labor, wanting to work

Thai labor will either have to develop some work ethics or it may find itself out of work

Already most construction company's and factory's employ foreign labor, in many cases illegally, because locals do not want to work, in 3 years, when employing foreign labor will be legal, i see most if not all factories and construction company's going for the foreign work force and there will be no shortage of them, because even when their pay is lower than the locals, it is still more than they get back home.

Is one of the problems in the low skilled area the fact that the 300 Baht per day law is brought in it doesn't apply to foreign labour. Whilst this seems like favouring Thais it does the opposite. As I understand it some companies are considering moving to border areas where they can take advantage of foreign labour which doesn't have to be paid the 300 baht minimum.

I realise that there will always be illegal workers and employers who don't pay the minimum anyway but you can't enforce a law that isn't there. One other thing I've just thought of, does the ASEAN agreement stipulate that workers in a country must be treated equally. doubt it but it's a thought.

that is an excellent point. i think in 3 years we will see some serious changes and have a bad feeling Thailand did not think this one through.

even assuming they did, now is the time to start to prepare for it, where it seems to be going other way around

And just what do they ever think through. They have counted on cheap labor to attract foreign investors and then raised the wages on them so they are no longer cheap labor.

[animatic]

quote name='phl' timestamp='1341730865' post='5464835'

its not an issue and yes it is more

but then again what company to do compare to Samsung?

]

I guess one of the other massive Japanese consumer electronics companies, or LG. But then again Samsung is so diversified into parts manufacturing also, it may be difficult to get a direct comparison.

Exactly

Well for one Sony, who Samsung just displaced as Asian #1 after decades of Sony at the top.

i do not think can, while both company's do many things alike, they also very different as a whole.

What i mean is sony is also into music, while samsung is also into chips.

I guess the most fair way is to compare the % of the budget each one spends on marketing and advertising

It is only comparable financially vs advertising budgets

in similar market segments they compete in.

But over all business cultures are comparabile regardless.

[JurgenG]

A number of Thai companies are doing well, CP for one.

I never really understood how the policy of localism promoted by the junta, and later by the democrats, fits with the Asean integration. I'm just glad they are gone.

You are joking, right?

Thaksin did exactly the same. The large companies pay ALL the political parties. It doesn't mater who is in power.

Sorry but I don't understand your answer, how is it related to my post ?

My post is about Thai companies successful outside of Thailand and the economic policy promoted by the junta after the coup. What does it have to do with bribing politicians ?

[kerryk]

Samsung wins because of aggressive marketing? Might not be the thousands of highly qualified engineers that Samsung sponsors through universities at home and abroad?

I wonder if asean will allow free movement of national newspapers and journalists so a little free market enterprise will give the nation a chance to improve or better still disappear.

I do not fully agree with your point of view.

One can have the best engineers in the world but without good marketing and advertising no one will get to know their talents and inventions.

Samsung upon entering the market was priced much cheaper and spent millions if not billions of $$$ on marketing and advertising.

Yes they are now pioneers of many new technology's but they also continue to spend billions on marketing and advertising and you will notice their prices are no longer cheap or cheaper if anything its higher than some Japanese makers.

LG also took chunk of market but heavy discounting, marketing and advertising

Good point.

It used to be said that most great innovations were invented by the British, perfected by the Germans, marketed by the Americans and mass produced by the Japanese.

Ya like Windows or Apple.

[Crushdepth]

Also true, but do keep mind, even the worst made movie can make money if enough money is put into advertising it.

One does not have to keep buying, just everyone needs to buy/try it once to make money.

Are you kidding? If only the CEO's of all the great failed companies over the years had spent more on marketing they would have made successful companies?

I can't wait to see Kodak advertising itself out of bankruptcy, or Blackberry taking out TV adverts to convince its customers that it is still a better product than Android or Apple.

Great companies like Samsung today take years and years of innovation to grow, and of course they have spent money on advertising, but it is the constant r+d and development of their products to make them among (if not) the best in the world that gets them to where they are. Of course launching a phone takes promotion, but if it doesn't deliver on the promises, it will not sell as well as it should, and this will feed onto the next product that it launches. Staying at the top is extremely difficult, just ask any business at the top of its field. Samsung isn't at the top because it outspent its rivals on advertising, it is at the top because it has built a brand around innovation, quality, and all the other issues that a successful global company needs.

These days with the internet review websites for everything under the sun, it doesn't take long for a company to go from the very top to the abyss very very quickly. Everyone knows whether something is a pig of a product before it even hits the stores.

http://www.filmsite....atestflops.html

And don't believe they didn't market these pigs of movies to the nth degree

please ask your friend how much samsung spends on marketing including advertising annually worldwide.

7 years ago, Samsung was spending over $600 million, by now i am sure they are spending over a billion.

You do not think it's the one of the major reasons for its success?

They also make some really nice products.

[metisdead]

Some nonsense posts have been removed as well as the associated replies.

[kerryk]

I do not think OP fully understands the consequences to follow.

Yes Thai businesses will have to think outside the box, but owner of the business is NOT the only driving force behind the business, staff also need to perform.

The biggest challenge and problems for Thailand i see is an influx of foreign labor, wanting to work

Thai labor will either have to develop some work ethics or it may find itself out of work

Already most construction company's and factory's employ foreign labor, in many cases illegally, because locals do not want to work, in 3 years, when employing foreign labor will be legal, i see most if not all factories and construction company's going for the foreign work force and there will be no shortage of them, because even when their pay is lower than the locals, it is still more than they get back home.

I don't think labor has much to do with it. Other countries make better products cheaper. If they are available in Thailand not taxed the Thai product will cease to exist.

[jombom]

Well the other countries have the same problems, Malaysian, Indonesian, Myanmar, Cambodia.....who of them should be the Thailand killer?

I worked with Indonesian.....nothing better than Thais.

How about Vietnam -- the people are much more switched on.

Or even the Philippines.

[somchaismith]

Comparing Japan to Thailand. Apples to oranges and neither are even in the fruit group.

[phl]

I do not think OP fully understands the consequences to follow.

Yes Thai businesses will have to think outside the box, but owner of the business is NOT the only driving force behind the business, staff also need to perform.

The biggest challenge and problems for Thailand i see is an influx of foreign labor, wanting to work

Thai labor will either have to develop some work ethics or it may find itself out of work

Already most construction company's and factory's employ foreign labor, in many cases illegally, because locals do not want to work, in 3 years, when employing foreign labor will be legal, i see most if not all factories and construction company's going for the foreign work force and there will be no shortage of them, because even when their pay is lower than the locals, it is still more than they get back home.

I don't think labor has much to do with it. Other countries make better products cheaper. If they are available in Thailand not taxed the Thai product will cease to exist.

better products such as?keeping in mind we are talking ONLY about ASEAN

[phl]

Comparing Japan to Thailand. Apples to oranges and neither are even in the fruit group.

Japan is not in ASEAN

Member Countries

Brunei Darussalam Cambodia Indonesia Laos Malaysia

Myanmar Philippines Singapore Thailand VietNam

[SuneeTH]

ASEAN?

Good luck to Thailand, a nation who don't speak (much) English nor Chinese.

[phl]

ASEAN?

Good luck to Thailand, a nation who don't speak (much) English nor Chinese.

and what does speaking chinese have to do with ASEAN country members?

[kerryk]

I do not think OP fully understands the consequences to follow.

Yes Thai businesses will have to think outside the box, but owner of the business is NOT the only driving force behind the business, staff also need to perform.

The biggest challenge and problems for Thailand i see is an influx of foreign labor, wanting to work

Thai labor will either have to develop some work ethics or it may find itself out of work

Already most construction company's and factory's employ foreign labor, in many cases illegally, because locals do not want to work, in 3 years, when employing foreign labor will be legal, i see most if not all factories and construction company's going for the foreign work force and there will be no shortage of them, because even when their pay is lower than the locals, it is still more than they get back home.

I don't think labor has much to do with it. Other countries make better products cheaper. If they are available in Thailand not taxed the Thai product will cease to exist.

better products such as?keeping in mind we are talking ONLY about ASEAN

\

Beer Lao

[Thai at Heart]

are you speculating or making a factual statement?

From what I can glean from the articles I posted previously, Samsung's spend in the US is marginally bigger than Apple's despite being far more diversified.

[phl]

I do not think OP fully understands the consequences to follow.

Yes Thai businesses will have to think outside the box, but owner of the business is NOT the only driving force behind the business, staff also need to perform.

The biggest challenge and problems for Thailand i see is an influx of foreign labor, wanting to work

Thai labor will either have to develop some work ethics or it may find itself out of work

Already most construction company's and factory's employ foreign labor, in many cases illegally, because locals do not want to work, in 3 years, when employing foreign labor will be legal, i see most if not all factories and construction company's going for the foreign work force and there will be no shortage of them, because even when their pay is lower than the locals, it is still more than they get back home.

I don't think labor has much to do with it. Other countries make better products cheaper. If they are available in Thailand not taxed the Thai product will cease to exist.

better products such as?keeping in mind we are talking ONLY about ASEAN

\

Beer Lao

So just to clarify, YOU like Beer Lao, so it must be THE CASE for the rest of people in Thailand?

[phl]

are you speculating or making a factual statement?

From what I can glean from the articles I posted previously, Samsung's spend in the US is marginally bigger than Apple's despite being far more diversified.

So we do agree that having great designs and engineers is NOT enough to be successful , one also needs to invest HUGE amount of money on marketing and advertising.

Also its not just about paying for advertising, but also identifying your target audience and target market and spending the money on targeted advertising.

[kerryk]

.I don't think labor has much to do with it. Other countries make better products cheaper. If they are available in Thailand not taxed the Thai product will cease to exist.

better products such as?keeping in mind we are talking ONLY about ASEAN

\

Beer Lao

So just to clarify, YOU like Beer Lao, so it must be THE CASE for the rest of people in Thailand?

No actually I don't drink. I am only referring to the articles I have read over the years by beer connoisseurs and beer marketing people. I think it would be the consensus of people who drink beer that if an Asian customer was exposed to Beer Lao and any Thai beers that the Thai beers would not do well as a result.

I think the point of the OP was not to waste money on supporting industries that are doomed. I would suggest that the beer and potentially wine industries are doomed unless they improve their methods. It is not the quality of the labor it is the quality of the product that needs to be addressed.

[phl]

No actually I don't drink. I am only referring to the articles I have read over the years by beer connoisseurs and beer marketing people. I think it would be the consensus of people who drink beer that if an Asian customer was exposed to Beer Lao and any Thai beers that the Thai beers would not do well as a result.

I think the point of the OP was not to waste money on supporting industries that are doomed. I would suggest that the beer and potentially wine industries are doomed unless they improve their methods. It is not the quality of the labor it is the quality of the product that needs to be addressed.

I think Singha. Chang and Leo will disagree with you and back up their opinion by multi billion dollar accounts along with multi million dollar high rises they own all over Thailand, just to name a few of their "achievements

But most importantly , do tell us who is supporting Singha or Chang or Leo? its certainly not the government subsidies.

"

[Notstupid30]

Myanmar having a lot invested as we speak give it time and i can see Thailand getting left behind due to all the problems here these day's .. plus the wage hike doesn't help Thailand at all ...

[phl]

Myanmar having a lot invested as we speak give it time and i can see Thailand getting left behind due to all the problems here these day's .. plus the wage hike doesn't help Thailand at all ...

it will take Myanmar at least 10 years if not more just to have the infrastructure.

An international airport would be a good start, not to mention hotels, since there are hardly any there at the moment

[kerryk]

No actually I don't drink. I am only referring to the articles I have read over the years by beer connoisseurs and beer marketing people. I think it would be the consensus of people who drink beer that if an Asian customer was exposed to Beer Lao and any Thai beers that the Thai beers would not do well as a result.

I think the point of the OP was not to waste money on supporting industries that are doomed. I would suggest that the beer and potentially wine industries are doomed unless they improve their methods. It is not the quality of the labor it is the quality of the product that needs to be addressed.

I think Singha. Chang and Leo will disagree with you and back up their opinion by multi billion dollar accounts along with multi million dollar high rises they own all over Thailand, just to name a few of their "achievements

But most importantly , do tell us who is supporting Singha or Chang or Leo? its certainly not the government subsidies.

"

Ya that's the point. If Beer Lao can figure out distribution Singha, Chang and Leo will be on the ropes with only government money available for support. The OP is saying let them go. I agree. But we will only know after ASEAN comes into effect. I don't drink but I am sure others will tell us about the state of the wine and liquor business in Thailand. I really think the only Thai selling point is price. Once that advantage is removed they are gone. Guinness is brewed in Singapore? Right? What is the tax on Guinness is Thailand now?

[phl]

No actually I don't drink. I am only referring to the articles I have read over the years by beer connoisseurs and beer marketing people. I think it would be the consensus of people who drink beer that if an Asian customer was exposed to Beer Lao and any Thai beers that the Thai beers would not do well as a result.

I think the point of the OP was not to waste money on supporting industries that are doomed. I would suggest that the beer and potentially wine industries are doomed unless they improve their methods. It is not the quality of the labor it is the quality of the product that needs to be addressed.

I think Singha. Chang and Leo will disagree with you and back up their opinion by multi billion dollar accounts along with multi million dollar high rises they own all over Thailand, just to name a few of their "achievements

But most importantly , do tell us who is supporting Singha or Chang or Leo? its certainly not the government subsidies.

"

Ya that's the point. If Beer Lao can figure out distribution Singha, Chang and Leo will be on the ropes with only government money available for support. The OP is saying let them go. I agree. But we will only know after ASEAN comes into effect. I don't drink but I am sure others will tell us about the state of the wine and liquor business in Thailand. I really think the only Thai selling point is price. Once that advantage is removed they are gone. Guinness is brewed in Singapore? Right? What is the tax on Guinness is Thailand now?

sorry i do not drink beer at all, i only sell it.

i do not know about guinness, but i do know that Thai will continue to drink singha, chang, tiger and leo irrespective of how guinness or beer lao taste, because majority of thai deeply believe that anything thai is just the best.

they do not even try other things, because they "KNOW" thai is better.

[metisdead]

A post has been removed due to possible violation of copyright and non compliance of fair use. It is generally accepted, but not written into law, that quoting the first two or three sentences of an article and giving a link to the source is considered “fair use” and not a violation of copyright.

[Thai at Heart]

are you speculating or making a factual statement?

From what I can glean from the articles I posted previously, Samsung's spend in the US is marginally bigger than Apple's despite being far more diversified.

So we do agree that having great designs and engineers is NOT enough to be successful , one also needs to invest HUGE amount of money on marketing and advertising.

Also its not just about paying for advertising, but also identifying your target audience and target market and spending the money on targeted advertising.

Well, all companies in this market advertise, it is part of the cost of doing business. All companies have an element of R+D cost, and as I put up previously in a link, Samsung has a very high R+D budget that allows them to get into dominant positions before their competitors in say LED or 3D TV's. I don't see why you would consider the fact that you have to advertise as being as significant as the actual quality of the products. Bring out rubbish products and you go nowhere in a very short space of time, and no amount of advertising is going to drag a middle or bottom of the pile company to the top.

Samsung or Apple aren't in the dominant position they are today because they advertise more than the rest, it is because they have for the price better products than the rest, which are independently reviewed on 1000's of different websites and keep getting good or better reviews than the rest. If they miss their mark for 6 months, or the next level of product launches, the consumer market will learn about it very very quickly. If the next Iphone 5 lacks the functionality of the Galaxy S3, expect very quickly for sales to not meet their targets. This is why it was so embarrasing when Apple had to admit that if you held their phone a certain way, you lost signal. Excellent, a phone that doesn't call, But they were very lucky to get around it by realising that most people have a case on their phones which mitigates the problem anyway. If it happens again, just wait for the market to bash them pretty hard.

Just look at the hotel industry. You can stick whatever international name on the front door, have the best position on the beach, and advertise to your hearts content, but 20 bad reviews on Agoda does have a significant effect on your business very quickly, people just go to the hotel next door. Just look at Tesco having to scrabble around in the UK because their Xmas promotion last year wasn't as strong as the competition and independent surveys are showing that people think that their shops are older and in worse nick than the competition. All it takes is to take your eye off the ball for a few business quarters and you aren't number 1 any more. Consumers are a lot more sophisticated than you are giving them credit for.

[Notstupid30]

Myanmar having a lot invested as we speak give it time and i can see Thailand getting left behind due to all the problems here these day's .. plus the wage hike doesn't help Thailand at all ...

it will take Myanmar at least 10 years if not more just to have the infrastructure.

An international airport would be a good start, not to mention hotels, since there are hardly any there at the moment

<Uncited content removed.>

everyone can plan to do whatever they like, but if airport does not have the runways planes can not land.

there are no flights from NY direct or from London direct, etc

Just like Cambodia, the only way to fly is through 3 locations-Thailand, Malaysia or Vietnam and all 3 use only small planes, no jumbo's

I'c fully understand never been to Myanmar and had no reason to go really ... Just found this on the net too

YANGON, Myanmar — Myanmar called upon local and foreign investors Monday to fund construction of a second airport to serve the country's largest city, Yangon, as it prepares for an influx of tourists in the wake of political reforms.

Tin Naing Tun, the head of the Civil Aviation Department, said the planned Hanthawaddy International Airport will cover 9,000 acres (3,642 hectares), an area nine times the size of Yangon International Airport.

Under reformist President Thein Sein, Myanmar has released political prisoners and allowed a measure of democracy and press freedom, reducing its international isolation. The government hopes to develop Myanmar's tourist industry into a major money earner.

Hanthawaddy will be the country's fourth airport capable of handling international flights, after Yangon, Mandalay and the capital Naypyitaw. It will be located about 48 miles (77 kilometers) north of Yangon, near the city of Bago.

Tin Naing Tun said Bago was found to be the most suitable location among nine considered. Construction of a new airport there started in 1994 but stopped in 2003. However, 80 percent of the earth work has already been completed, he said. Bago used to host a small airstrip used by the Japanese armed forces during World War II.

Tin Naing Tun said construction will start in June 2013 and is scheduled to be completed in 2016.

"We are inviting investors to build the new airport to serve the larger number of passengers and to encourage private sector participation," Tin Naing Tun said. Yangon International Airport, which has undergone several overhauls in recent years, can handle 2.7 million passengers annually. Only 17 planes can park at the airport at the same time, according to civil aviation deputy director Nweni Win Kyaw.

Before Hanthawaddy's development was shelved in 2003, it was envisaged the airport would handle 10 million passengers a year.

Source http://www.msnbc.msn...t-serve-yangon/

Edited July 9, 2012 by metisdead