Factors Affecting Export Ability of Herbal Business in Phitsanulok Province
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Abstract
Nowadays, the export demands of herbs are increasing, resulting the increase income from exports, with more than 100 billion baht’s in 2016 especially supplementary food, spa and traditional Thai medicine. However, imports is trend to higher in value than its exports. Therefore, it is necessary to increasing the country’s export potential in order to generate more income to sharpen the competitive edge, and to increase the potential for herb exports as great importance. Most of the herb businesses in are small and medium sized enterprises and facing multiple problems such as not meeting the international standards for qualified products, not meeting the market’s demands for production quantity, having high production costs, and having production techniques, management and marketing, etc. This study investigates the factors affecting the success of the herb businesses in Phitsanulok Province, and explores suitable business formats for exporting herbs and competing in the business. The research questions are as follows: 1) What are the marketing potential and opportunities for exporting herb products in Phitsanulok Province? 2) What are the factors influencing the success of exporting herb products in Phitsanulok Province?. The findings reveal that internal factors, namely the conditions of the production factors, organizational structure, and demand conditions, are at a high level. As for external factors, only the political environment and the social environment are at a high level. The export potential of Phitsanulok Province is at a high level. The success factors of the export of herb products are the high ability to compete, the product merits, competitive prices, the ability for continual market expansion, and the ability concerning distribution channels to reach the target customers and to distribute their products faster than the competitors.
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References
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