This report critically analyses the network allocation and identification for the Red Bull Company in Thailand, and highlights strategic focal net implications in developing this emerging market. The first part of this report will determine major focal networks in Thailand by applying theoretical models to highlight and categorise the most crucial key market domains Red Bull needs to be connected with, while consolidating a position in the Thai functional beverage market. The second part of this essay aims to identify possible strategic implications, in order to build a solid and long-lasting position in the Thai market while collaborating with its potential network constituents. As business networks are getting increasingly important as a powerful tool for strategic business development (McAuley, 2001) and uncertainty attenuation whilst expanding business operations in foreign countries (Hollensen, 2004).
Table of Contents
1. Introduction
2. Thailand - Network Motivation
3. Business Networks & Focal Net
4. Red Bull’s Network Allocation
4.1. Customer Markets
4.2 Referral Markets
4.3 Influence Markets
4.4 Employee (Recruitment) Markets
4.5 Supplier Markets
4.6 Internal Markets
5. Strategic Implications for Red Bull
6. Conclusion
Research Objectives and Key Themes
This report examines the market expansion strategy of Red Bull in Thailand by identifying and categorizing essential business networks. The study applies theoretical frameworks to evaluate how the company can leverage inter-organizational relationships to establish a competitive and sustainable market position.
- Network allocation and identification for Red Bull in Thailand.
- Application of the "six-market-model" to categorize key stakeholders.
- Strategic implications of navigating the Thai functional beverage market.
- Importance of interpersonal relationships and cultural factors in business networking.
- Analysis of market domains including customers, suppliers, and internal resources.
Excerpt from the Publication
3. Business Networks & Focal Net
According to Anderson et al. (1994), business networks are “a set of two or more connected business relationships, in which each exchange relation is between business firms that are conceptualized as collective actors” (p.2). It is important for Red Bull to allocate networks initiatives, as those, according to Coviello and Munro (1994), “emanate from opportunities created through network contacts, rather than solely from the strategic decisions of managers in the firm” (p.58). A close and lasting business network of Red Bull to its Thai constituents can provide the organisation with a key marketing strategic opportunity (Gummesson, 1999) to access external resources, “new market contact, and enhance flexibility and market reputation” (McAuley, 2001, p.86). Furthermore, inter-firm relationships with Thai collaborators can provide Red Bull with an opportunity to vanquish physical and cultural distances, due to local trust and commitment building initiatives to domestic suppliers, customers or non-market relationships (Gummesson, 1999).
Summary of Chapters
1. Introduction: Outlines the scope of the report, focusing on Red Bull's network strategies for market development in Thailand.
2. Thailand - Network Motivation: Discusses the Thai business environment, emphasizing the significance of cultural norms and personal relationships in local commerce.
3. Business Networks & Focal Net: Provides a theoretical foundation for understanding business networks and their role in gaining strategic advantages.
4. Red Bull’s Network Allocation: Details the application of the six-market-model to identify and manage critical stakeholders in the Thai market.
5. Strategic Implications for Red Bull: Offers tactical recommendations for building a strong market position through relationship-focused strategies.
6. Conclusion: Summarizes the necessity of a nuanced, case-by-case approach to managing business networks to ensure competitive success.
Keywords
Red Bull, Thailand, Business Networks, Focal Net, Six-Market-Model, Relationship Marketing, Market Expansion, Strategic Management, Functional Beverage, Stakeholder Management, Inter-firm Relationships, Cultural Factors, Competitive Advantage, Emerging Markets, Network Allocation.
Frequently Asked Questions
What is the primary focus of this report?
The report focuses on analyzing the network allocation for the Red Bull company as it seeks to expand and solidify its market position within Thailand.
What are the main thematic areas discussed?
The core themes include business networking theory, the application of the six-market-model, environmental analysis of the Thai market, and strategic relationship management.
What is the core objective of the study?
The objective is to identify and categorize essential focal network constituents to provide Red Bull with a structured strategy for sustainable growth in the Thai functional beverage market.
Which scientific framework is utilized in the analysis?
The study employs the "six-market-model" developed by Christopher et al. (1991) to categorize key relationship constituents.
What does the main body cover?
The main body examines the specific market domains—customer, referral, influence, employee, supplier, and internal markets—and provides strategic implications for each.
What characterizes the key terminology of this work?
The work is characterized by terms such as "focal net," "inter-firm relationships," "six-market-model," and "relationship-life-cycle."
How does the Thai culture impact Red Bull's networking approach?
The study highlights that Thai culture values personal relationships, patience, and respect, making formal, impersonal business approaches less effective than in Western markets.
Why is the "six-market-model" considered relevant for Red Bull?
It allows the organization to review and prioritize key market domains, ensuring that all vital stakeholder groups are adequately addressed during the market expansion process.
- Quote paper
- MSc International Marketing Strategy Benjamin Bach (Author), 2007, Network and relationship allocation and identification for the Red Bull Company in Thailand, Munich, GRIN Verlag, https://www.grin.com/document/76900
