PESTLE

PESTLE Analysis

Political[footnoteRef:8] [8: “Thailand Country Commercial Guide accessed on September 30, 2018, https://www.export.gov/Thailand country commercial guide. ]

· United States has a good partnership with Thailand that stretches beyond a bilateral relationship with an impact on the broader region.

· Thailand and the United States have longstanding cooperation in international law enforcement efforts Comment by Jamison, David J..: How is this related to your product?

· Ongoing U.S. support for Thailand government efforts to promote good governance through democracy and civil society activities

· Despite the new Thai Public Procurement Act that has been in effect since August 2017, corruption and lack of transparency in government procurements are major concerns for U.S. companies.  

These factors suggest that Evolution Man should be aware of the political environment in Thailand and that US maintains a good partnership with Thailand in regards to trade, security cooperation and cultural exchange. However, they should also be concern about the possibility of corruption and lack of transparency within the government when it pertains to business transactions.

Economic[footnoteRef:9] [9: Ibid]

· Thailand’s economy experienced slight accelerated growth in 2017 and has remained stable

· Thailand’s beauty and personal care products market was valued at approximately $4.7 billion in 2017, a 7.8% increase over 2016.

· Among ASEAN countries, Thailand leads as an original equipment manufacturer (OEM) for international cosmetic brand.

· Thailand currently imports approximately 20% of personal care ingredients from the U.S.

These factors suggest that the market for Evolution Man in Thailand is likely to grow as Thailand consumers are continuing to purchase cosmetic beauty and personal care products over the next couple of years. Also, Evolution Man needs to focus on convincing consumers to shift to cheaper natural personal care alternatives.

Social[footnoteRef:10] [10: Ibid]

· Consumers shopping for beauty and personal care are shifting to multi-brand beauty stores.

· Thailand is entering an aging society and demand is rising for anti-aging products in various styles with low-to-premium positioning.

· Consumers are showing interest in natural and organic hair care due to the health and wellness trends

· Thai consumers are price conscious and generally served by local suppliers and low-priced imports.

These factors suggest that the market for Evolution Man to succeed in Thailand is very high. Consumers demand for low priced beauty and personal care items in many different beauty stores are due to an aging society and people who are gravitated towards health and wellness trend products.

Technological[footnoteRef:11] [11: Ibid]

· Sephora open online store in Thailand in 2016 which has had a significant impact in Thailand.

· The e-commerce market in Southeast Asia is one of the fastest-growing and most promising with its projection to grow to $11 billion in 2025.

· The total Thai e-commerce revenue is expected to reach $3.5 billion in 2018.

· Thai government focuses on “Thailand 4.0” policy for constructing a broadband network for all villages across the country.

The Thai government’s “Digital Thailand” initiative that started in 2016 has brought about a wave of opportunities for businesses across different industries to digitize their operations and services, especially for small business seeking to undergo digital transformation.  As a result, cross-border market opportunities offer growth rates of approximately 25%, which is well above those found in most traditional retail markets. 

Legal[footnoteRef:12] [12: Ibid]

· The 1966 Treaty of Amity and Economic Relations facilitates U.S. and Thai companies' economic access to one another's markets

· Thailand recently amended its Civil Procedure Code to include class-action lawsuit provisions

· The regulatory environment protecting intellectual property in Thailand is at times difficult to navigate.

· Thailand is not a signatory to the WTO Agreement on Government Procurement.

These factors suggest that Evolution Man should be aware of all of the recent laws and customs that the Thailand government has imposed, but also should be encouraged that the US and Thailand maintain good relationships in open trade markets.

Environmental[footnoteRef:13] [13: Ibid]

· There is a growing focus on a more natural beauty trends among Thai consumers. 

· Due to increasing awareness of health and wellness among consumers in Thailand, there is a healthy demand for natural and herbal personal care and beauty products

· Extreme heat and global warming Comment by Jamison, David J..: How is this related to your product?

· Plastic waste management

These factors suggest that the company Evolution Man should be concern with Thailand activists and international advocacy groups who are for reducing plastic waste in the environment. Also, consumers are moving towards more natural and organic beauty trends so the company should take these into account to when conducting business in Thailand. .

OVERALL: Very good effort.

BA 563 Research Submission Part 1 Grade Sheet

Rubric Weights:

Country background = 10 point

Product identification = 10 point

PESTEL examples = 60

Relation between PESTEL and product introduction strategy = 10

References = 10