Toyota began operating in Thailand as Toyota Motor Sales in year 1956. (Toyota Motor Thailand Company Limited, 2004). Toyota started exporting to avoid competitors from gaining first-mover advantaged in new markets since export is the fastest and lowest risk mode. However, Toyota Japan chose FDI as a strategy via assembly plant in Thailand in year 1964 because Thailand was not only lower cost location but also lower tariff. At once, Toyota exported auto parts to assemble vehicles in Thailand. This aimed at an assembly centre rather than a manufacturer. On the other hand, Thailand has indicated rapid growth with a stability of political situation, small religious gap, relatively sufficient technological assets and cheaper labor cost. Therefore, Toyota concentrate on taking advantage of lower labor cost to gain their product competitive advantage over the competitor’s product.