The opportunities for Thai Bags to expand the business oversea are greatly remarkable. The capability of Thai bags manufacturers is high but the domestic market is limited. Therefore, Thai bags manufacturers and retailers should expand the business to foreign country, especially to the countries in South East Asia region. In order to be successful in business expansion, Thai bags manufacturers and retailers should analyze the external and internal factors of the business in every dimension, and then the appropriate business plan can be established.
Concerning the Indonesian bags industry, there are many business opportunities available. There are many global bags brand in the market and they establish the branches in Indonesia. The external environment of Indonesia is supportive for the international business expansion, as the barriers for business are minimized by government’s regulations. In addition, the emerging of middle class people creates more opportunity in bags market. People tend to purchase bags that deliver higher quality and last longer and exchange them with higher price.
Direct export is one of the most appropriate entry modes in the early stage of market expansion. Thai bags companies can export the products to Indonesian market and find an appropriate Indonesian partner to facilitate the product distribution. This business plan will be beneficial for Thai bags manufacturers and retailers to be successful in Indonesian bags market penetration