Strategic factors in ornamental plants (balled tree) export business in Thailand

Abstract

This research aimed to examine the factors influencing the success of entrepreneurs and the strategic factors for entering foreign markets in the export of ornamental plants (balled trees). This qualitative study collected data through in-depth interviews with 10 entrepreneurs. The findings indicated that most businesses were family-operated, primarily exporting to Middle Eastern countries. Key factors influencing entrepreneurial success included: 1. Human resources as the primary factor, with comprehensive training enabling employees to perform all tasks interchangeably. 2. Capital expenditures were predominantly for employee wages. 3. Regarding raw materials and equipment, the availability of certain seasonal trees did not meet market demand. The most sought-after balled trees were the Siamese Neem and Flame Trees, followed by the Black Afara, Purple Orchid Tree, Rain Tree, and Golden Shower Tree. 4) Management-wise, owners took a hands-on approach from task allocation to efficient capital planning, quality control, and appropriate quantity management, which resulted in well-organized operations and successful outcomes. Strategic factors for foreign market entry included direct exports, which enabled entrepreneurs to distribute their inventory more effectively, maintain constant product turnover, and avoid intermediary markups. However, this approach carried risks such as potential late customer payments and the burden of managing all documentation. Indirect exporting mitigated issues related to late payments, transportation risks, country-specific regulations, and liability for damages during transit, but it also resulted in less direct customer contact and potentially lower long-term returns.