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Key Success Factors in Running Animation Business in Thailand

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Key Success Factors in Running Animation Business in Thailand KEY SUCCESS FACTORS IN RUNNING ANIMATION BUSINESS IN THAILAND SUJEEPORN WONGWAIWANIT A THEMATIC PAPER SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF MANAGEMENT COLLEGE OF MANAGEMENT MAHIDOL UNIVERSITY 2015 COPYRIGHT OF MAHIDOL UNIVERSITY Thematic paper entitled KEY SUCCESS FACTORS IN RUNNING ANIMATION BUSINESS IN THAILAND was submitted to the College of Management, Mahidol University for the degree of Master of Management on May 2, 2015 ……………….………….…..……… Miss. Sujeeporn Wongwaiwanit Candidate ……………………….….…..……… ……………………….….…..……… Dr. Poomporn Thansatitdej, Assoc. Prof. Vichita Ractham, D.B.A. Ph.D. Advisor Chairperson ……………………….….…..……… ……………………….….…..……… Assoc. Prof. Annop Tanlamai, Asst. Prof. Randall Shannon, Ph.D. Ph.D. Dean Committee member College of Management Mahidol University i ACKNOWLEDGEMENTS I owe a debt of gratitude to Asst Prof. Poomporn Thansatitdej. Advisor of this Thematic Paper for the vision and foresight which inspire me to conceive this project who also offers a great deal of consultative advice and provide the golden opportunity to develop this interesting project. Without him considerable attention, true inspiration and comprehensive instruction, this research could not have been completed. In addition, I would like to thank all eight respondents for their complete cooperation, relevant information publishing in my research and valuable time. Eventually, I would like to extend heartfelt gratitude for my beloved family who always strengthen high motivation and generate a solid support to me actively. Sujeeporn Wongwaiwanit KEY SUCCESS FACTORS IN RUNNING ANIMATION BUSINESS IN THAILAND SUJEEPORN WONGWAIWANIT 5649206 M.M. (ENTREPRENEURSHIP MANAGEMENT) THEMATIC PAPER ADVISORY COMMITTEE: DR. POOMPORN THAMASATITDEJ, D.B.A., ASST. PROF.RANDALL SHANNON, Ph.D., ASSOC.PROF.VICHITA RACTHAM, Ph.D. ABSTRACT Due to the creative industry is main focus by many governments around the world including many European countries, United Stated and Thailand as well. Therefore, the purpose of this research paper is to understand the key success factors affecting in running animation business in Thailand and also to investigate Thai animation market trend and opportunity. The research used a qualitative approach. Data was collected with tape recorded. The interview was conducted from 8 respondents who are running animation business or involve in animation business. The study revealed that creativity is the most important key success factors in running animation business. Follow by innovation management, practical skill of entrepreneur and business knowledge; including sale, marketing, and accounting-finance. KEY WORDS: Animation Business, Creative Industry, Key success factor, Entrepreneur 37 pages 1 CONTENTS Page ACKNOWLEDGEMENTS ii ABSTRACT iii LIST OF FIGURES vi CHAPTER I INTRODUCTION 1 1.1 Problem Statement 3 1.2 Research Objective 3 1.3 Expected Benefit 3 1.4 Research Question 4 CHAPTER II LITERATURE REVIEW & HYPOTHESIS DEVELOPMENT 5 2.1 Creative Industry 5 2.2.1 Global Creative Industry 7 2.2.2 Thailand Creative Industry 8 2.2 Animation 9 2.2.1 Global Animation Industry 10 2.2.2 Asia Animation Industry 11 2.2.3 Early Trend in Animation Outsourcing to Asia 12 2.2.4 Thailand Animation Industry 13 2.3 Characteristic of Entrepreneur 14 2.4 Critical Success Characteristic of entrepreneur in Animation Business 16 2.4.1 Entrepreneur knowledge 16 2.4.2 Creativity 17 2.4.3 The principle of creativity 19 2.4.5 Innovation 20 2 CONTENTS (cont.) Page 2.5 Conceptual Framework 21 CHAPTER III RESEARCH METHODOLOGY 22 3.1 Research Approach 21 3.2 Data Collection 22 3.3 Interview Question 23 CHAPTER IV RESEARCH FINDING AND RESULTS 24 4.1 Demographic Data 24 4.2 Entrepreneur Knowledge (Practical Skill) 24 4.3 Creativity 27 4.4 Innovation 30 4.5 Business Knowledge 31 CHAPTER V CONCLUSION AND RECOMMENDATION 33 5.1 Conclusion 33 5.2 Recommendation 34 5.3 Limitation 35 5.4 Future Research 35 REFERENCES 36 BIOGRAPHY 38 3 LIST OF FIGURES Figure Page 2.1 Classification system for the creative Industries derived from different models 7 2.2 UCTAD Classification of creative Industries. 8 2.3 Size of Global Animation Industry (US $Billions) 11 2.4 Number of Animation studios across the world 11 2.5 Thailand Animation Industry Market Values, year 2011 (US Dollars) 14 CHAPTER I INTRODUCTION Creative industries are becoming increasingly important components of modern post-industrial knowledge- based economies. They are thought to account for higher than average growth and job creation, they are also vehicles of cultural identity that play an important role in fostering cultural diversity. During the last decade, the creative economy has been growing at a faster pace than the rest of other industries. According to UNCTAD, world trade in creative industries products continues to increase, even during the financial crisis in 2008. In many advanced economies, the creative economy is now recognized as a leading sector in generating economic growth, employment and trade. In Europe, the creative economy generated a turnover of € 654 billion in 2003, increasing 12 per cent faster than the overall economy (KEA, 2006). World exports of creative goods and services continued to grow, reaching $592 billion in 2008 more than double their 2002 level, indicating an annual growth rate of 14 per cent over six consecutive years. This is a confirmation that the creative industries hold great potential for developing countries that seek to diversify their economies and leapfrog into one of the most dynamic sectors of the world economy. There are many models classifying creative industry into many categories and one of them is animation industry. The demand for animated entertainment has expanded with the increase in broadcasting hours by cable and satellite TV along with the growing popularity of the Internet. The rapid advancement of technology has made computer animation available to the masses and the animation industry is one of the fastest growing industries. The size of the global animation industry was about USD 222 billion in 2013. And most of the segments in the animation industry are growing at the rate of 7%. (Digital Vector, Marketresearch.com, 2014) Consequently, this new software genre has become one of the fastest growing industries in the current decade. Owing to the increase in computing power and the reduction in computing costs, we are seeing more and more of the global computer animation production output taking place. The multinational studios leverage various forms of partnership, coproduction and joint ventures with global partners. Several countries subsidize their national film industries, including animation and therefore, strategies such as co- production have been adopted to explore global market opportunities and production subsidies. Co-production has emerged as a popular strategy for studios in many countries. Funding flows for co- production, from Hollywood to other countries and vice versa is very common. The interesting thing is the animation outsourcing is spread widely to Asia, including Thailand. According to the report on Thai Digital Content Industry (2009), it is found that there is a potential growth in the animation industry at the rate of 7.07% between 2008 -2013. The report also predicted that the growth in value would reach THB 14,900 million in 2013. Thai animation industry is considered as one of the industries with high potential to generate foreign revenue. With all above information, it can be said that animation industry is one of the most interesting industry in Thailand. Currently, there are more institutes and universities in Thailand providing the animation study program for both non-degree and Bachelor degree than the past. The example of universities that have animation study as their majority in studying are Chulaolongkorn University, Mahidol University (MUIC), Rangsit University and Sripathum University. The increasing of institute and university offering the course, combining with the spread of technology, there will be more graduate student and newcomer who will be an entrepreneur or one of the workforces in Thailand creative industry. The growing trend of animation industry, the increasing of new graduation student under animation field in Thailand plus the spreading of technology and its cheaper cost are reasons why animation industry is interesting to study. Therefore, it is important to know the key criteria or component, which these entrepreneurs should have in order to run the animation business in Thailand. 1.1 Problem Statement The growth of animation industry and the increasing in the number of the student studying animation field in Thailand are two factors that make this industry interesting. However, there few researches on this industry and almost of them are the study in terms of economy analysis, not an analysis on an entrepreneur aspect. 1.2 Research objective To identify the key success factors in running animation business. 1.3 Expected Benefit This research will benefit directly to both of the entrepreneur who would like to stat running animation business and the animation organization who already operate or having an experience in the industry already. The result of this research can be use to be a guidance of both start up business and experience operated animation business to what are the key important factors they have to considered to run a business. 1.4 Research Question • Identify Thai Animation Industry in term of opportunity, growth and market size
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