Question

You are the business development manager for Flipkart (India) which is now looking to expand in Thailand. Based on the Hofstede’s dimensions what would be some of the cultural challenges in successfully running the business in Thailand?

Identify and justify any two major changes that Flipkart will need to make in its business model prior to launching in Thailand.

Answer 1

Hofstede's dimensions is essentially a framework which shows the effects of a society's culture on the values of its members. Although there are several similarities between the two countries, some of the cultural challenges in running a business in Thailand would be indirect communication, thailand has higher uncertainty allowance, wherein the ultimate goal is to control everything and the society does not willingly accept change. Communication is often indirect, they avoid direct confrontation, which could lower the service quality of Flipkart as a service cause in getting feedback, the customers wouldn't be straightforward. There is much more femininity in Thailand as compared to masculinity, there is less competition.

Flipkart will have to make its model a little more women centric and sell women oriented goods and services which focus on clothes, and accessories and a good quality of life. It will also have to work on a better communication model as people in Thailand don't usually convey their feedback directly, there are hidden nuances and subtlety which if not interpreted correctly, Flipkart will find it difficult to infer and satisfy customers which will severly impact its business. There is much more collectivism in Thailand wherein people belong to groups, thus there is more loyalty, so if anyone person in a group dislikes the products Flipkart sells, because of this sense of loyalty collective groups will avoid the website, which can prove detrimental to Flipkart.