Mistine Case Study: Direct Selling, SWOT, and Global Expansion Plan

This case study examines Mistine, a leading cosmetic brand in Thailand, focusing on its rise to dominance through direct selling. It analyzes the company's strengths, including substantial market share and brand recognition, and weaknesses, such as high salesperson turnover and recruitment process limitations. The study identifies opportunities for further growth, such as leveraging its brand recognition and advertising strategies, while also addressing threats like competition from Avon and other firms. The analysis explores how Mistine can maintain its leadership in Thailand while expanding internationally, emphasizing the importance of employee retention, technological integration, and competitive analysis. The conclusion highlights key factors influencing Mistine's success in the Thai market and its potential for global expansion, underlining the need for strategic adjustments to overcome challenges and capitalize on opportunities.

Running Head: MARKETING 1
Marketing
Names
Institution

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Contents
Executive summary.....................................................................................................................................3
Introduction.................................................................................................................................................4
SWOT analysis.............................................................................................................................................4
Strengths.................................................................................................................................................4
Weaknesses.............................................................................................................................................5
Opportunities..........................................................................................................................................5
Threats.....................................................................................................................................................6
How to lead in Thailand while focusing on expanding internationally........................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8

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Executive summary
Over the years, Mistine has been one of the leading brands in the Thai cosmetic market.
The company has attained by implementation of various strategies that have helped its products
to sell in many religions of the country. The aim of this paper is to explore the strengths,
weaknesses, opportunities and threats associated with this company. The paper will look at its
chances of succeeding in its plans to expand to other regions, various challenges that impact its
success such as competition and what makes it a strong company in the Thai market. It will also
identify some of the things that its management can do to ensure it leads in the Thai market while
making its decisions to expand to other regions. This will include providing an insight of how its
management can address the weaknesses, threats and other factors that prevent it from attaining
success. At the end, a conclusion will be made to provide the major findings identified from the
study.

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Introduction
Although Mistine has succeeded in some things in its operation in Thailand, there are
various things that it should consider to continue growing and maintaining its dominance in the
Thai market. From this case study, it is clear that this organization has various strengths,
weaknesses, opportunities, and threats that should be considered while implementing its
expansion and operating strategies in this country.
SWOT analysis
Strengths
One of the strengths associated with this company is substantial market share. Over the
years, its management has been committed to enhancing the quality of its products, as well as
improving customer satisfaction, meaning the company has enhanced its reputation across the
country. Most consumers have also built loyalty with its products, hence making it to enjoy
brand recognition. As a leader in the Thai market, Mistine will continue to attract many
customers as compared to its competitors.
Weaknesses
Although Mistine has succeeded in some things, there are various weaknesses that its
management needs to work on to continue dominating the Thai market. One of the major
weaknesses, in this case, is high salespeople turn over. Because most of the people employed by
this company to play the role of salespeople view selling Mistine as a second job, they don’t
work with the organization for long, a situation makes the management to experience high
turnover rate. According to Gummesson (2012), high staff turnover costs organizations in terms
of time and money used to hire and train recruits, and therefore Mistine should address this issue
to continue performing well. This company also has a weakness in its recruitment process

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because it invites anyone who wants to earn money, develop self-confidence and make new
friends. For the establishment of a competent workforce, its management should not only aim at
attaining these aspects but should also consider other critical factors such as qualifications and
experience.
Opportunities
There are various opportunities that this company can use to continue dominating the
Thai market and also to expand its business to other countries. Having proper targeting strategies
and a tightly integrated marketing program can assist it to keep growing. Its strong brand
recognition can enable its management to overcome some of the challenges such as competition
in its domestic and foreign markets. Most of the people in Thailand having familiarized
themselves with direct selling and established loyalty to Mistine brand, this company has an
opportunity to sell a substantial volume of products as compared to its competitors. According to
Joshua et al., (2015), advertising is one of the critical factors that make an organization to realize
high market share. Therefore, being the first direct selling company to use mass media
advertising, Mistine has an opportunity to enhance its brand image, and to inform as many
people as possible concerning the existence of its products.
Threats
One of the major threats faced by this company is stiff competition from various firms
that produce similar products. Some of them comprise of Avon, Giffarine, and Amway.
Although Mistine has a strong brand name, some of its competitors like Avon, for instance, have
established proper strategies that may make it to grab a substantial market share. The other
threat faced by this company is competitors’ focus on the implementation of technology in their
operations and diversification of products.

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How to lead in Thailand while focusing on expanding internationally
According to Luther (2011), performance in the domestic market plays a crucial role in
determining the level of success in which a company is likely to attain in a foreign market. This
means it is crucial for Mistine to consider various key things that can make it to remain
competitive in Thailand while focusing on expanding to foreign markets. Because one of the
major things that affect its operations in Thailand is high salespeople turnover, its management
should concentrate on enhancing job satisfaction among these people so that they can develop
the desire of being associated with the company. This can be attained by providing attractive
compensations and rewarding those who perform better. Retaining salespeople in the company
will have various benefits such as reducing hiring and training cost. Retaining these people will
also play a key role in having experienced and people who are conversant with the business
model used by this company
The other thing that will make Mistine to remain a leader in Thailand while focusing on
expanding to other countries is implementing technology in its operations. According to
Gummesson (2012), technology is a critical factor in business operations because it helps
organizations to attain both tangible and intangible benefits that assist them in achieving
substantial profits, and also to produce goods or services that match customer demand. Using
technology will enable Mistine to challenge its competitors by producing products that satisfy
customer needs.
The other thing that its management should solve to remain strong in Thailand is
addressing the threat which comes from competition. Ronald (2015), states that competition may
put business performance at risk especially when a company does not have strengths that can
assist it to attain a substantial market share. For this company to achieve and retain a competitive

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advantage, it should analyze the changes in consumer buying behavior and expectations. Its
management should also analyze the strategies used by its competitors and strive to challenge
them.
Conclusion
There are various strengths weaknesses, opportunities and threats that can influence the
success of this company in Thai market, and also in its plans to expand to other regions. One of
the strengths associated with the company include strong brand recognition, substantial market
share, and reputation among others. Its weaknesses include inability to retain its sales people,
and failing to consider key things that can enhance performance such as qualifications during
recruitment. Its opportunities include possibilities to expand to other markets while its major
threat is competition. There are various things that this company can do in order to lead in
Thailand while focusing on expanding internationally. Some of them comprise of reducing
employee turn over, challenging its competitors, using technology in its operations and so forth.

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References
Gummesson. E. (2012). Total Relationship Marketing. London: Routledge
Joshua, T. B., Kelly, C., and Robert, W. P. (2015). Understanding Relationship Marketing and
Loyalty Program Effectiveness in Global Markets. Journal of International Marketing,
Vol. 23, No. 3, 1-21.
Luther, W. (2011). The Marketing Plan: How to Prepare and Implement It. New York:
AMACOM.
Ronald, B. (2015). Marketing Channel Integration -A Review of Current Debates. Advances in
Management, 8(5), 56-89.