A research study submitted in partial fulfillment of the requirements for the degree of Master of Business .Administration.

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1997

This research is undertaken to study the natural rubber-based companies in Thailand. With this purpose, eighteen companies supplying rubber products for the automobile industry were selected. In addition, information from six automobile manufacturers was also gathered. Automobile parts manufacturers in rubber-based industry in Thailand are facing competition from both domestic and foreign competitors in a growing economy with expanding interregional boundary. From the study, it was found that competitiveness of the surveyed companies is moderate. In this segment of the industry, it is rather attractive in terms of sales growth and profitability. Large companies generally are joint ventures between a local and foreign partners thereby having more sophisticated technologies and systematic management practices than medium and small companies. It was also found that one of the pitfalls of the automobile rubber part industy is the shortage of rubber technologist. Investment in R&D is needed but it requires knowledgeable personnel and sufficient testing facilities. However, the automobile manufacturers are still satisfied with their rubber part suppliers as long as they can meet the requirements in terms of quality, cost, delivery and service. Finally, it was found out that the competition of companies in the OEM markets is low but it is very high in the REM markets. Only companies with strong technological capability are eligible to sell their products to the OEM markets. The threats from new entrants would intensify the competition of both markets.