SUCCESS FACTORS OF SMALL AND MEDIUM ENTERPRISES IN SAKON NAKHON PROVINCE, THAILAND

Narumon  Klangpangrut; Phurichchaya  Taeporamaysamai; Jarita  Hintao

Narumon Klangpangrut Graduate Student of Kasetsart University, Thailand
Phurichchaya Taeporamaysamai Department of Business Management, Faculty of Liberal Arts and Management Science, Kasetsart University, Thailand
Jarita Hintao Department of Business Management, Faculty of Liberal Arts and Management Science, Kasetsart University, Thailand

Abstract

The purposes of this research were 1) to study the internal factors, which included Man, Money, Material, Management, and Machine, 2) to study the external factors, which included the bargaining power from material’s sellers or suppliers, bargaining power from purchasers, the drives from new rivals entering into the market, the drives from substitution goods, the drives occurred within the industries influencing the competitive strategies, 3) to study the competitive strategies, which included, leadership on low cost, difference making and influenced marketing through the success of Small and Medium Enterprises in Sakon Nakhon province. This research was carried out by the quantitative research method. The population was 2,329 entrepreneurs of Small and Medium Enterprises registered in the Office of Commercial Affairs Sakon Nakhon. The sample group was 350 persons. The instrument used was a questionnaire for data collection. The reliability was examined by using the Cronbach's alpha coefficient. The statistics used for data collection included Frequency, Percentage, Standard Deviation, and Pearson’s correlation coefficient analysis.
The research result revealed that the internal factor of Material affected the competitive strategy on low cost, the internal factor of Material affected the competitive strategy on differentiation, and the internal factor of Material affected the competitive strategy on niche market. However, the external factor, which included the bargaining power from purchasers and the drives from substitution goods affected the competitive strategies of leadership on low cost, the external factors of bargaining power from purchasers and drives from new rivals entering into the market affected the competitive strategy of differentiation , and the external factor of bargaining power from material’s sellers or suppliers, and the bargaining power from purchasers affected the competitive strategy of niche market. Furthermore, the competitive strategy of leadership on low cost and differentiation, niche market affected the success of Small and Medium Enterprises in Sakon Nakhon province, Thailand.