Request
For the first overseas expansion of a promotional media company into Thailand, we would like comprehensive support starting from the initial consultation during the business concept phase, business plan development, local market research, local entity registration, localization of services for Thai users, advice on building media platforms, customer acquisition marketing, sales support, and organizational development for the local entity.
Our Support
First, we conducted a hearing to understand the business concept, followed by creating a business plan in collaboration with the client. While refining the business plan, we began gathering necessary information and conducting local research. Together with stakeholders, we progressed with preparations for the business launch, incorporating required tasks into the schedule. I then entered Thailand and carried out the project as the business leader.
- Conducted a detailed hearing on the business concept and provided advice related to the Thai market
- Assisted in creating a 5-year business plan (mainly focused on quantitative profit and loss statements)
- Performed a legal check of the target service business model for the Thai market
- Provided a basic training session on the Thai market for the client company’s internal stakeholders
- Developed a local hiring plan for the Thai subsidiary
- Conducted on-site research (retail research, consumer goods price surveys)
- Visited local stakeholders, including shareholder companies, accounting firms, law firms, IT companies, logistics companies, and service offices, for business visits and interviews
- Created an implementation schedule based on the business plan
- Assisted in preparing board presentation materials for internal approval of the business plan
- Coordinated local company registration process (in collaboration with a local law firm)
- Contracted with an accounting firm and coordinated with the client’s head office accounting team
- Continuously updated the business plan as needed
- Listed potential client companies
- Managed local employee recruitment, training, and management
- Set sales KPIs
- Initiated user acquisition advertising campaigns
- Directed the development of promotional media (in collaboration with the client’s head office development team)
- Developed employee regulations
- Established personnel evaluation system
- Prepared monthly progress reports
- Implemented service localization strategies
- Conceived and implemented new services
- Directed the development of additional service features
- Conducted competitive analysis of similar services in the local market
- Provided local sales support (primarily for consumer goods manufacturers)
- Contracted with local logistics companies
- Managed the operations of the local subsidiary
- Developed partnerships with local businesses in Thailand
- Conceived new services
- Directed the development of additional features for promotional media
- Coordinated consolidated financial statements (in collaboration with the client’s head office accounting team)
- Coordinated audit response (in collaboration with the client’s head office accounting team)
- Developed next year’s budget plan
- Coordinated the handover process to the head office team
Results
- Completed the local entity registration based on the business plan
- Achieved the target user acquisition for the promotional media in the first year
- Offset revenue losses through the launch of new services following the emergence of similar competing services
- Successfully completed the launch of the first overseas expansion efficiently and at a low cost by providing comprehensive support
- Built a local entity structure that allows focus on business expansion for the following years and executed the business handover (including service launch and localization, new service launches, local employees, internal and external accounting, legal, HR, local partners, competitor selection, potential customer lists, market trends, and identification of risks).
Comment from the person in charge
In the case of this client’s overseas expansion, it was a product-out approach to entering the Thai market. From the initial business planning stage, we provided comprehensive support. However, with any overseas expansion, unforeseen situations are inevitable. By preparing for several possible options and anticipating unexpected issues in advance, we were able to respond appropriately and successfully carry out the overseas business launch.
Additionally, product-out type overseas expansions are a common approach for Japanese companies entering international markets. However, the critical point to be cautious about in this type of expansion is the assumption that “if it sells well in Japan, it will sell well overseas.” This mindset can lead to hasty decisions to expand without proper preliminary research, localization, or consideration of realistic local pricing. If local competitors emerge, a price war becomes difficult to win, and if the expected price is not accepted in the market, it could result in zero profit or complete market rejection.
Before expansion, it is crucial to conduct thorough market research. Additionally, preparing options for securing sales in case competitors emerge post-launch, and coordinating with the Japanese headquarters for sales activities in the target country, are essential. For new services not yet available in the target country, there may be legal challenges preventing the service launch due to a lack of regulatory frameworks. Therefore, depending on the nature of the service or product, legal checks should also be performed in advance to avoid any potential issues.
