Marketing system of particleboard in Thailand, 1991-1993
1994
Srisakul Armararatana
Study was conducted to know the market structure, conduct and performance of particleboard industries in Thailand. Results of the study show that there are two groups of particleboard producers: the large and the small producers. The large producers produce high quality products while the small producers produce low quality products. The large producers distribute their products to foreign market, their own furniture companies and the domestic market. While the small producers sell only to the domestic market. Most of the products are sold direct to consumers by the producers. Market at the producer level is an oligopoly with product differing in quality, size and services that producers give to consumers. The barrier to entry is rather high due to high cost of investment and the present of forward integrated industries. The conduct of price collusion is presence and the price leadership is existed. Therefore, the marketing system performs inefficiently with high profit to the producers. To improve marketing efficiency and the market conduct, government support to the new producers is required.
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