Thailand Business

Introduction

Thailand is a fast growing emerging economy. It has a very different culture from that of the west which may initially make it a confusing place for American investors to enter. Thailand’s government is very welcoming to many forms of foreign investment. This report will analyze the social, political, cultural, and economic environment in Thailand. It will also discuss a suggested entry strategy for a Kentucky Fried Chicken franchisee into Thailand.

Social Environment

The following section discusses demographics in Thailand. Different features include population, population densities, growth rates, health, and education. The population in Thailand is estimated to be approximately 66 million people ("2010 country commercial,”). According to the National Economic and Social Development Board, most of Thailand’s population lives in rural areas. The rural population mostly resides in rice growing areas spread throughout the kingdom. However the scales are steadily shifting in the direction of urban areas due to the rapid industrialization of Thailand. Estimates project the urbanization rate to increase by 1.8% annually until 2015 (2012).

The urban population is concentrated into large cities. Thailand’s capital, Bangkok is the most populated and is home to approximately 6 million of Thailand’s residents. The concentration of businesses in Bangkok is the reason for the high population density there. The population ethnicity is largely comprised of Thai nationals. Thais account for approximately 75% of the population. Chinese make up 14% and the remaining 11% are a mixture of different ethnicities. (2012). The age distribution in Thailand is concentrated mostly between the ages of 14 – 65 making up approximately 70.9% of the total population. Of that 70.9% it is mostly evenly distributed between males and females. Males make up approximately 49% and females 51%. In 2011, the median age in total was estimated at 34.2 years. The median male age is...