China

OT Analisis
External analysis
Social/ culture factors in Thailand can be the biggest opportunities for Oroton.
High population density in major cities and ever – increasing urbanization rate arecues for the company to narrow their geographic segments. High educational level
helps Thai people to have a better understanding of the information delivered by
Oroton, including the idea ofproduct design, the essence of brand etc. Due to the
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high income level among Thai people and high level of awareness about global
fashion trends,Oroton can offer more luxurious products because people have
strong purchasing power. Owing to the significant number of online users, Oroton
can rise profits by constantly posting creativeadvertisement in the official website
and by building a database of customer information.
Porter’s five forces (1979) help Oroton to elucidate the structure of Thai fashion
retailing industry and point outa more profitable way to position the company in
Thai market. For opportunities, the Australian – Thailand free trade agreement
decreases tariffs for foreign products, while the fact that Thailandis a member of
WTO reduces the entry barriers for Oroton.
For threats, a plenty of well – established luxury brands such as LV, Gucci have
already existed in the target market, indicating a highindustrial rivalry rate. Due
to these powerful competitors, new entrants like Oroton need to experience
sluggish market permeability with more registered capital.
Thai people now become moresensitive to luxury brands’ price. Because different
companies can offer various price levels with wide range of products, substitutes
for Oroton products can be easily found and bargaining power ofbuyers tend to be
relatively high. Simultaneously, because Thai government prefers to employ
domestic logistic providers in international business, bargaining power of
suppliers can be high as well....