In a world where technology moves fast, an “idea” may only be the starting point. The “Business Model” is what determines whether your company survives — or becomes part of the 90% that shut down.
In a hard-hitting conversation on TechCut EP.9 between Moo (Nattavudh Pungcharoenpong), founder of Ookbee, and Bee (Peeranat Thoonsaengngam) from Muze, we unpacked the real and often painful differences between doing business in Thailand vs abroad — lessons that no Thai tech entrepreneur can afford to miss.
1. Context Is the Wall That Even Global Icons Can’t Break Through
Thai startups often default to a “Copy & Paste” strategy from global models like Amazon, Uber, or Shopify. But in reality, every country has its own unique “friction” that changes everything.
Case Study: Grab vs Uber — Uber invented the model, yet Grab won Southeast Asia because it understood the local context and behaviour of people on the ground far better.
DIY vs DIFM (Do It For Me): In the US, consumers tend to prefer doing things themselves — which is why tools like Shopify thrive. But in Thailand, the “hire someone to do it” culture is strong. Thais would rather pay for a service than pay for a tool and figure it out themselves.
2. The Thai Market Isn’t as Large as You Think (The TAM Reality Check)
One of the biggest traps is failing to understand the Total Addressable Market (TAM) in Thailand’s context.
The Growth Ceiling: In Thailand, even nationally dominant businesses in logistics or food delivery operate within a limited Market Cap. If you start in a niche that’s too narrow, the chance of reaching breakeven becomes very small.
The Value Gap: Revenue from digital products in Thailand (such as apps) is often lower than that of physical product businesses or restaurant chains with national reach. This reflects a reality where Spending Power in the digital space still has significant limits.
3. The “Good Apps Should Be Free” Culture — and the Way Out for Software Houses
The challenge every Thai software builder faces: consumers happily pay 200 baht for a coffee every single day, but hesitate to pay 99 baht per month for quality software.
The SaaS Pain Point: Accounting software and management systems often have massive user bases, but the proportion who convert to paying users is tiny — leaving revenue too thin to grow the development team.
The Hybrid Solution: The model that both Peeranat and Nattavudh agree works best in Thailand is “Technology + Physical Service” — selling outcomes rather than just software. For example: offering consulting or managed services that use your own software as the tool. This makes the value tangible, and customers are far more willing to pay.
4. The Investor Lens: Why You Must Target 10x Growth
For startups seeking Venture Capital, it’s essential to understand the nature of investors who take on enormous risk in exchange for outsized returns.
- Investors aren’t looking for businesses that grow 2–3x — that might actually be riskier than buying blue-chip stocks on the exchange.
- To attract investment, a business must demonstrate “Execution Power” — the team’s ability to drive 5–10x growth within a short timeframe.
Conclusion for the Modern Entrepreneur
Building a successful business in Thailand isn’t just about the sophistication of your code. It’s about the precision of a model that truly fits the Thai market.
- Find a market large enough — don’t start something with such a low ceiling that you can’t move.
- Understand Customer Psychology — Thais value Service and Human Touch more than Pure Software.
- Focus on Execution — in a limited market, the team that can move fast and adapt wins.
At Muze, we’re not just a Software House that takes code orders. Under the leadership of Peeranat, we are a “Creative Tech Partner” — a thinking partner from Business Model design through to Product development that genuinely connects with Thai users.
If you have a business idea and need a team that understands both Tech and Business, build your masterpiece with us at muze.co.th
Key insights from TechCut EP.9 — “90% of Business Builders Get the Business Model Wrong”