The examples of the strategic alliance businesses in Thailand

1. STRATEGIC
ALLIANCE
CASE EXAMPLES.
CASE OF WONGNAI AND LINE, THAILAND.
CASE OF MAJOR CINEPLEX AND CJ E&M, THAILAND AND KOREA.
Social Networks Collaboration.
Collaboration Film Industries.
Akharapon Thanyagaset
ZmDEB 1/I, 37655

2. CASE 1
THE SUCCESSFULNESS OF WONGNAI and LINE THAILAND
x
Wongnai Media Co., Ltd. LINE Company (Thailand) Co.,Ltd.

3. Wongnai is Thailand’s leading super-lifestyle platform
on the application programming interface. Wongnai
was founded in 2010 and it has connected people to good
stuff through its comprehensive content and users’ reviews
on restaurants, recipes, beauty, and travels.
Delivering remarkable contents and services via its website
and mobile application for both iOS and Android,
Wongnai has developed seamless O2O (Online-to-Offline)
services for consumers’ everyday life and Wongnai POS
solutions for restaurant owners.
At present, Wongnai has served more than 10 million
monthly active users. It has also owned the largest
restaurant database in Thailand, covering more than 300,000
eateries. Wongnai has more than 400 employees and
operated offices in as many as 9 cities across Thailand.
WONGNAI

4. LINE is a freeware app for instant communications on electronic
devices such as smartphones, tablet computers, and personal
computers. Line users exchange texts, images, video and audio. In
addition, Line is a platform providing various services including digital
wallet as Line Pay, news stream as Line Today, video on demand as Line
TV, and digital comic distribution as Line Manga and Line Webtoon.
LINE began in Spring 2011 as a communication system for NHN Japan
employees. It then saw explosive growth when released to the public in
June of that year. By January 2013, Line had been downloaded 100
million times worldwide. The number expanded to 140 million by early
July 2013 and to 200 million by July 2020. As of June 2019, Japan claimed
81 million users while Thailand had 44 million active users which is
leading Thailand to be the second biggest market of LINE corp.
In Thailand, LINE has many more various of service and features beside
the content service (Chat, News, Webtoon) such as, LINE for business,
O2O (Online to Offline, LINE man and LINE Shopping), LINE financial
service and LINE games.
LINE

5. By the visions and goals : Wongnai has vision to connect people
to good stuff based on being lifestyle platform which is presenting
the comprehensive content and users’ reviews about food and
restaurant, LINE has aimed to be the life-infrastructure and bring
user and information closer,
By the benefits: LINE has the biggest number of the user in IM
application in Thailand (44 million), to collaborate with LINE,
Wongnai will have chance to expand and penetrate the new target
and get closer to its own existing user (3 million). Also for LINE that
will get another partner who is the leader on the food and
culinary online content, it will help LINE diversified their service
and their engagement in the future.
The decision of making a partnership of the companies are related
and based on many aspects, could be explained as follows;
WONGNAI X LINE
STRATEGIC PARTNERSHIP 2016-PRESENT

6. Wongnai has official partnership account on LINE
platform, LINE's user can add @WONGNAI as a friend.
The service that user can have from @WONGNAI are the
information about food, restaurants and the recipe.
User can ask the question about the location of the place
for eating by only typing the name or kind of food and it
can be related to the location searching as well.
The content on the Wongnai timeline page is pushing
and launching to the subscribed user directly, and can
be shared to other LINE user's chatbox easily.
Chatbot is the automatic replying system on LINE application
that user or customer can have interactions with the service
or organization's account in many ways.
1.
2.
3.
4.
WONGNAI CHAT-BOT
THE OPERATION OF
WONGNAI X LINE (2016-NOW)

7. LINE MAN offers a complete range of transportation services that
can deliver everything including ordering food, by the collaboration
with Wongnai, user can order the menu from the restaurant page
on Wongnai and get delivered the food by the LINE MAN
messenger directly. Also customer can easily access to the
restaurant database (information, menu, review, etc) from both
application which are LINE and Wongnai.
The operation is showing that the majority of the restaurants
which are shown on the LINE MAN service is counting as 15% from
the restaurants which are shown on Wongnai. (45K from 300K)
WONGNAI X LINE MAN
THE OPERATION OF
WONGNAI X LINE (2016-NOW)

8. NUMBER OF USER
ENGAGEMENT.
In Q1-2017, The number of user visits
has increased up to 12 million/month
(+20%) from 10 million/month in 2016
Follower increased up to 2.8 million.
(+20%) from 2.4 million in 2016
NUMBER OF FOOD
ORDER ON LINE MAN .
In Q1-2017, The food delivery order has
increased up to 500,000 orders/month and
up to 1million orders/month in Q1-2018.
The number of food suppliers has increased
up to 40k (+100%)
SUCCESSFULLNESS
MEASUREMENTS
FOR WONGNAI X LINE collaboration.

9. CONVENIENT SERVICE IS
THE KEY.
Because "Food Matters", combination of
Wongnai the food review site and LINE delivery
service has full-filled the need of customer (1
point service).
EXPANDED MARKET
By sharing the datas, infos and services between
2 companies, leading them to reach their based
existing users and gain new target user.
USER INTEGRATED
The service which let user becomes their own
content creator (by reviewing food and sharing
to friend on the socialmedia has gained food
ordering)
CONCLUSION
FOR WONGNAI X LINE collaboration, what they have learnt?

10. CASE 2
THE FAILURE OF MAJOR CINEPLEX THAILAND
AND CJ E&M KOREA.
CJ Major Entertainment
Major Cineplex Group CJ Entertainment
and Media

11. Major Cineplex Group Public Co. Ltd. is the largest
operator of movie theaters in both Thailand,
Cambodia and Laos. currently operated 815 screens,
171 locations nationwide and international in year 2019.
Major Cineplex was founded by Vicha Poolvaraluk in
1994. A member of a family with roots in the movie
business. Vicha decided on a concept of large movie
complexes that could offer a range of
entertainment services, including not only movies,
but also bowling alleys, karaoke rooms, restaurants and
shopping. The first such complex opened in 1996 on
Nakhon Chaisri Road in Pinklao, Bangkok. The 14-
screen, 4,000-seat Major Cineplex Ratchayothin opened
in 1998 and featured Thailand's first IMAX cinema. It was
the company's flagship cinema complex until 2006,
when Paragon Cineplex opened.
MAJOR GROUP
THAILAND

12. CJ Entertainment and Media (CJ E&M) is a South
Korean film production and distribution company
under CJ Group. The company operates as a film
production company, film publishing house, investment
and exhibition. The company created by CJ Group in 2011,
by emerging of the sub-companies such as CJ
Entertainment, CJ Media, M-net Media, On Media and CJ
Internet. To provide the entertainament service in multi-
group of target market.
"NO CULTURE,NO COUNTRY" is the motto for the
corporation which is covering the industries and being one
of the strong reinforcement in The Korean Wave (Hallyu)
refers to the global popularity of South Korea's cultural
economy exporting pop culture, entertainment, music, TV
dramas and movies.
CJ E&M KOREA

13. MAJOR GROUP X CJ E&M
STRATEGIC PARTNERSHIP 2016
Major Group wants to upgrade its own corporation from the
downstream provider to be the upstream producer in the
bigger scale. By collaboration with the biggest leader in Korean
entertainment would bring a lot of development potentials in the
high scale production.
CJ E&M aimed to penetrate the film industry in Thailand and
neighbouring markets with the new international marketing
strategy, instead of selling their product to be screened at the local
cinema, but to create the new production house and co-create the
movie, film with the native creator in the local area.
Major Group planned to ramp up the expansion of product and
cinema to the CLMV area (Cambodia, Laos, Myanmar, Vietnam)
Major Group and CJ E&M did first announce about the collaboration
project in March 2016, the motivation of the strategic partnership
came with the few points as follow;
TECHNOLOGY, KNOWLEDGE AND CULTURAL SHARING
MARKET EXPANSION / LOCALIZE STRATEGY

14. NEW LOCAL PRODUCTION HOUSE
RE-MAKE VERSION OF THE HIT KOREAN FILM
The 1st movie to be launched is "Suddenly 20",
the film remade from "Miss Granny (2014)" a
popular Korean film which earned 51.7 million
USD.
Thai director, actor and actress were involved
in the film production. The launch date was
planned to debut in the Q1-2017 in Thailand,
Laos and Cambodia.
The expected earns is 4.7 million USD.
Capital of the film is 1.6 million USD
Major Group and CJ E&M decide to invest together
in the new corporation with 3.2 million USD as a
registered capital, named CJ Major Entertainment,
located in Bangkok, Thailand. The firm aimed to
produce and launch the movie into the market.
THE OPERATION OF
CJ MAJOR ENTERTAINMENT 2016
Major Group Thailand X CJ E&M Korea
original version re-make version

15. REVENUE FROM FILM SCREENING.
The gross income on the 1st week was only 250K USD
and from November 2016 - January 2017 is only 733K
USD, which is not achieved the expecting earning (4.7
milion USD) and it's losing from capital -54.37%.
The Failure of "Suddenly 20"
Production of CJ Major Entertainment.
CRITICS OF THE MOVIE.
From the beginning the film seemed to be interesting for
the market because of the reputation from the original
and the performance of actor/actress in their previous
work, but the film did not touch the people's heart as
they expected. Lack of cultural adaptation and low
differentiated from its original are the keys of film's
failure.
FEEDBACK AFTER RELEASING TRAILER
Instant Rom-com film with the same formula in the
industries and neutral-toned trailer, lead the non-
excitement vibe to the consumer.

16. THE DIFFERENCES OF
MARKET'S CULTURE.
Even the original movie (product) was
successful before, it couldn't guarantee the
successfulness of the new product in the
new context. Market research in the cultural
aspect is needed.
CONCLUSION
FOR Major Group and CJ E&M collaboration.
what they have learnt from their 1st failure?
HIGH EXPECTATION.
It's very common to expect the high
returned income after investing the new
project, but it needs to be based on the
qualification of the production as well.
TIMING
The timing of releasing the product is also
needed to be planned carefully. In this case,
the film was released on November which is
the festive month, which means there were
lots of rival's product as well, especially the
Hollywood movies.

17. Reference.
https://investor.majorcineplex.com/en
https://www.nationthailand.com/business/30282747
https://en.wikipedia.org/wiki/CJ_E%26M
http://m.cjem.net/company/history
https://www.straitstimes.com/lifestyle/entertainment/miss-granny-remake-lacks-thai-touch?
fbclid=IwAR1nI8uhHe-w26najRKvHP-x6-TMvKhs54kgtqFUaUmzy7-lY6CediqxWtQ
https://www.beartai.com/lifestyle/movies/135248?
fbclid=IwAR33pReLQa9P360_j6x9rHo88EdpNRxEkHAHoqSQx3ffYepecK-FvP5Evvo
https://techsauce.co/pr-news/cj-major-entertainment
https://www.vogue.co.th/beauty/20-mai-uturnwai
CASE 2 MAJOR GROUP X CJ E&M KOREA
https://www.thumbsup.in.th/line-th-stats-2019
http://www.brandage.com/article/11423/Line-Man
https://www.etda.or.th/content/wongnai-story.html
https://www.marketingoops.com/tech-2/wongnai-tech-company/
https://techsauce.co/pr-news/wongnai-for-business
https://www.smethailandclub.com/startups-3314-id.html
https://brandinside.asia/line-man-wongnai/
https://linecorp.com/en/company/mission
https://www.wongnai.com/about?locale=en
CASE 1 WONGNAI X LINE THAILAND