Business In Emerging Markets

Anfernee Payton

Tony Moore

Phase 1

Thailand

Fintech Services

Claim: Thailand has a population of 68,977,400, it’s a growing market and country. Thailand was once an underdeveloped country to one of the most advanced nations in the world today. The Emerging Market country is expanding on education, is the top five for outsourcing, and is currently focusing on sustainability. This is a good thing because they also have enough people to be buyers and workers for this company. We are choosing the company Jitta Fintech because of several factors. According to our RCII we have collected some data that we felt would be impactful while we try and enter the market. Thailand is ranked 10 in economics, 12 in financial systems, which is very important because financial systems are the system that allows the exchange of funds between financial market participants like lenders, investors and borrowers. This is very important to us because we are entering a market and we need to be able to maximize funds so that all parties are satisfied. We also looked up some data for investment profile which they are ranked 18th in a niche market, market access ranked 26, global share of 0.9, global rank of 32, Female/Male Economic Participation and Opportunity is ranked 18 and lastly, the demography dynamic is ranked 58. All important data especially the female/male economic participation and opportunity because we need full all the population to be able to either be a consumer or worker. We also looked up investor protection which is ranked 4th. Investor protection is extremely important, so its great that they do a great job in protecting investors. Even though Thailand has a lot of great things going for them we can’t forget about a few obstacles. Thailand is ranked 86th in internet users and 63rd in fixed broadband subscriptions. This is extremely important because we are a Fintech company and the more people who use and have good internet subscriptions the better. With our services would provide processing and assessing all data it receives, and compiles only the essentials, such as the businesses quality and the company's’ intrinsic value. Jitta simplifies many formulas, variables, and methods into ease of use and intuitive tools that are now available for investors to help identify the “best companies to buy” through the Jitta score, and the “best time to buy” through the Jitta Line. Jitta helps streamline your decision-making process, minimize your risk and maximize your return. Jitta has been providing financial analyses of the US and Thailand stock markets. We aim to include more markets in Asia and Europe to serve investors worldwide. What will differentiate us from our competitors is our growth opportunity, financial strength, our performance over the past decade and certain competitive advantages we have.

Evidence: Thailand is ranked 10th in the top countries for the best macro-economic indicators and broad economics. Also, like stated in the claim 10th in economics. Out of all the countries in the ASEAN region, Thailand ranks first for market access and 26th worldwide. This is great news for us especially with us already having a great relationship with other countries. We have put together some factors that we feel support our claim. These Jitta Factors are a compilation figure that analyzes the five key elements of a business: 1. Growth Opportunity indicates business growth as in, what stage is the business in and how much more can the company grow. A high score indicates that the business is still in its growth phase. 2. Recent Business Performance indicates business performance in the last four quarters. A high score in this category suggests that the business is growing strongly. 3. Financial Strength indicates how strong a company is financially -the higher this figure is, the stronger a company is financially. 4. Return to Shareholders indicates how well a company can return wealth back to its shareholders. The more return, the better (it this value is too small, it means that management doesn’t care enough about the shareholders’ benefits). 5. Competitive Advantage indicates a company’s ability to compete -the higher the value, the better.

Warrant: Now our evidence shows us to have a strong run in this market. We hope that because they are lots of competition in our market. We are ranked 4th for FinTech’s in Thailand at 6.5 million dollars by funding value. This leads us to fear we may be in a red ocean situation. We learned about this with our previous group and we feel this same warrant still applies. Due to the large gap in funding value that the number one ranked company has at 45 million dollars seems like they can have a dominant grasp over the market. Now we plan to use every factor possible to our advantage, meaning expanding to other countries, using the population to help work for us, continuing to find investors for our company and as well to help Thailand increase the average number of users using the internet and increasing our look for small businesses as well as big businesses to help. With us being a B2B company we feel like we can thrive in this market for a long time as long as investments, stocks and internet innovation continues.

Counterclaim: You are in a market where you are in the red ocean and you’re not even top 3 in your market. This is true, Omise is the leader in this market with 45 million in funding value. They are also planning to scale up operations of its units in areas of payment, blockchain technology, and digital assets exchange industries. This is bad for us because again they are finding a way to differentiate themselves within our market. Luckily, we still believe we can too differentiate ourselves and use our evidence to flourish in this market and take that number one spot.

Bibliography

Department, P., & 4, D. (2019, December 04). Thailand: Top ten fintech startups by funding value 2019. Retrieved October 20, 2020, from https://www.statista.com/statistics/1075667/thailand-top-ten-fintech-startups-by-funding-value/

Writer, S. (2019, July 17). Thai wealthtech Jitta to expand to Singapore and India. Retrieved October 20, 2020, from https://asia.nikkei.com/Business/Startups/Thai-wealthtech-Jitta-to-expand-to-Singapore-and-India