Brand Performance and Positioning Strategy of LeapMotor in Thailand

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LeapMotor
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LeapMotor
Leapmotor is a company that manufactures smart electric sports cars and auto spares. A key focus of the company is to extend versions of existing models to ease buyers’ concerns rather than adjust prices. Leapmotor recognizes consumer experience as a critical part of corporate social responsibility regardless of the possible funding implications. A key objective of the company is to promote sustainability by making sustainable and energy-efficient vehicles (Li et al., 2019, p. 834). The management focuses on fulfilling its social responsibility. Young people who anticipate having a personalized car experience are the company’s main customer base for smart electric cars. Leapmotor will venture into Thailand with the ultimate objective of increasing overall sales and proceeds. The rapid rise of Thailand’s market reflects an unprecedented demand among customers for vehicles with smart technologies. Besides, the government supports clean vehicles, thus facilitating the company’s success.
Macro-Environmental Factors That Can Impact Brand Performance
Macro-environmental factors play a critical role in determining the brand performance of Leapmotor in Thailand. The state’s rapid economic growth has influenced investors’ interest in the market. However, Thailand has laws, regulations, and cultural practices that could be a significant barrier to its operation in the market. Regarding the company’s intention to expand its operation to international markets, the management should consider the most imperative factors to enhance its successful expansion (Kim et al. 2019, p. 740). Besides, analyzing cultural peculiarities, business opportunities, and economic conditions in Thailand would be fundamental to determining the company’s market success.
The globalized world provides numerous opportunities for corporations such as Leapmotor to venture to new outlets. Over the years, Thailand has realized rapid economic growth, facilitating its attractiveness to global corporations and investors. The high rivalry level preconditions the need for the company to preserve its leading position and compete with close rivals (Manutworakit and Choocharukul, 2022, p. 8482). International expansion has become a fundamental aspect for organizations that look for opportunities to facilitate their growth. However, organizations must assess the main components of the business environment and related risk factors.
Thailand has played a significant role in the international economy over the last two decades. As such, it emerged as a leading state with numerous perspectives for future development. Currently, the country encounters a significant economic rise among industrialized countries. The manufacturing sector generates 40% of the state’s income as it evolves (Selvakkumaran et al., 2019). Other industries, such as transportation, are fully developed, which makes the country ideal for investments. Following the substantial participation of global corporations and foreign equity, the expansion of Leapmotor to Thailand is justified.
Notably, Thailand preserves a leading position among the newly industrialized countries globally. Over the years, the level of wealth has been increasing, thus, making it suitable for investors. For instance, the number of people living in poverty has decreased tremendously. However, some parts have unequal wealth distribution as minority groups own a significant portion of capital. Thailand’s economy has the potential for further growth following its relevance among investors (Haustein & Jensen 2018, p. 490). Notably, the country has a robust agricultural sector that facilitates the rise of manufacturing industries. However, Information Technology (IT) is the state’s most imperative source of income. On the state’s current tendency, it would be easy to predict the overall growth of export. Thailand cultivates its economic ties with other countries based on its relevant role in the globalized market. China, European Union, Japan, the USA, and UAE are the most critical partners of the country.
Political Factors
Thailand is an active member of the Association of Southeast Asian Nations and the World Trade Organization (WTO). Participation in Thailand in international organizations provides numerous opportunities for making new contracts. However, the country has high levels of corruption that might devastate the economy (Huang & Ge 2019, p. 370). Besides, the key stakeholders conceal a significant part of produced goods and services from the local authorities to obtain more proceeds. In such a case, it is possible to attract more investors due to the numerous opportunities that are available in the market. According to Kongklaew et al. (2021, p. 12839), Thailand has an extensive history of foreign investments, thus attracting agents. Notably, the country is in a stable political state, further facilitating its investment environment. However, the connectedness between various power branches is quite complex. For instance, the country has encountered two military coups that aimed to reconsider power patterns and replace prime ministers. Equally, the 2013-2014 political crises resulted in increased tension between representatives of various parties within the government.
The country’s political instability resulted in a significant loss of revenue. For instance, the tourism industry encountered a decrease in proceeds from the deteriorating situation. As a result, the government started providing foreign investors with guarantees related to state functions (Brinkmann & Bhatiasevi, 2021). Equally, the parliament enacted laws to protect foreign capital while creating an ideal market for companies with interests in the Thailand market. Therefore, laws are the key determinants of the effectiveness of venturing into new markets. Notably, the government prioritizes foreign investments as critical forces that promote the rise of various spheres of the Thailand market. Therefore, the authorities and policymakers provide a conducive environment for external investors. For instance, foreign nationals can enter the country to assess the available investment opportunities.
Economic Factors
Thailand is the 23rd largest economy globally, following its economic progress from a low-income country to an upper-income level. The government makes significant efforts to introduce unique and sustainable poverty reduction mechanisms. Thailand is one of the notable export economies from a global perspective (Thananusak et al., 2017, p. 362). Mineral fuels, vehicles, electrical equipment, computers, and organic chemicals are the country’s leading exports. In contrast, the country imports locomotive parts, crude petroleum, integrated circuits, and office machine parts. However, trade tensions between US and China, flagging domestic demand, and sluggish exports resulted in slow growth of the economy. Notably, the country has the lowest unemployment rate since there lacks an incentive for anyone to remain jobless. Consequently, the ones without a formal job enter into the informal sector to identify part-time employment.
Social Factors Affecting Thailand
Thailand has a large population that would provide enough market for Locomotor. Although there lacks any official religion, most people practice Buddhism. Hinduism, Christianity, Islam, and Hinduism are equally significant religions in the country. Statistics indicate that the life expectancy of men is 71 years, while women’s is 79 years (Montian et al., 2019). Thai is the primary language of communication in the country. Thailand’s people are hardworking and friendly to visitors. Therefore, investors will find it easy to venture into the country. Thailand is a diverse country with minimal tensions between ethnic groups. In such a case, people coexist freely while practicing their faith. Over the years, spending habits have changed as more people prioritize luxuries, such as dining out and leisure travel. Thai women are educated and tech-savvy, thus highly paid. Besides, Thai people are brand conscious and, thus, can pay extra money for their preferred brands. The demand for luxurious products, such as sunglasses, cars, designer watches, and jewelry is rising (Irfan & Ahmad 2021, p. 103049). However, Thai people encounter numerous social issues, such as human trafficking, corruption, adolescent pregnancy, and aging.
Thailand has emerged as a technologically advanced country, with the government offering incentives for companies to incorporate modern technology in their operations. Equally, Thai companies have a considerable investment in tech infrastructure and innovation. In the coming years, the country will realize an increase in e-commerce and related tech activities. Thai companies have emerged as global suppliers of tech products and services. Equally, Thailand is a leading country using social media platforms like YouTube, Facebook, Tw...