Dealing With Risk Essay

1070 words - 4 pages

TA- Orange penetrated the Thai mobile phone market with one idea in mind; they wanted to get in and quickly build up for themselves a significant share of the market. Assessing risk, the probably of effectiveness, amount of allocated assets and length of time necessary to see results, is important for any organization wishing to remain in operations. Like all companies, particularly those utilizing aggressive strategy, TA-Orange entered the Thai mobile phone market facing a variety of risks, each of which could result in specific consequences for the company. Three of these risks included risks regarding internal management for a fledgling company, risks that the organization could fail to establish the goals of their current strategy due to time and money deficits, coupled with the risk that they will be unable to maintain or transfer to a successful competitive strategy and the risk of expense and revenue loss due to regulation.Telecom Asia-Orange executed their commercial launch and immediately began an aggressive campaign to take over the Thai mobile phone industry. The reviewed article was written just one month after the launch and signified the immediacy of TA-Orange's actions. This joint venture was comprised of the Thai companies CP Group and Telecom Dr. Corrine Patrick Asia and France's Orange SA is a new organization. Despite the fact that the individual companies included in the venture are vastly experience in the field, the fact remains that a new organization often suffers from internal issues related to management, project development and implementation. These issues have the possibility to influence and disrupt business operations. Because the parties involved are all highly experienced in technology fields, this risk is somewhat mitigated but cannot be completely overlooked. Low-medium level risk of internal dissention or lack of consistency remains.TA-Orange, after forming a strategic alliance to capitalize on the technology and reduce the financial risk of competition, the new TWA-Orange headed collision course against all other industry suppliers. Perhaps the most pressing issue facing TA-Orange is whether or not they can maintain their current strategy long enough to secure the necessary market share and then transition to a long-term business strategy model while maintaining that share.TA-Orange's current aggressive strategy consists primarily of severe price cuts and a progressive goal to attract a very large client base, a million subscribers in a year, quickly. While there was obviously no barrier to entry in forms of costs, as the company was easily able to undercut competition, their ability to maintain the pace and for how long remain questionable.Currently TA-Orange is attempting to utilize cost leadership, using a lower cost strategy aimed at a broad target market. This type of aggressive, vigorous pursuit is usually not synonymous with successful control of overhead. TA-Orange, a newcomer to the field, is unlikely...

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