TA-Orange: A case study on the mobile phone market in Thailand

Essay by cavepilotUniversity, Bachelor'sA, February 2004

download word file, 4 pages 4.0

Downloaded 108 times

The Thai Mobile Phone Market had been operating with little or no competition for years. That all changed in April of 2002. Telecom Asia-Orange or TA-Orange, is a joint venture company of CP Group and Telecom Asia and France's Orange SA. The venture that they set out to accomplish is one that will involve risks. Using the information given in the article, TA-Orange faced three significant risks that threatened their objectives. The first risk was the possibility that they under-estimated the competition, the second risk was the possibility of not having enough consistent cash flow and the final risk was using the competitors hardware to accomplish their mission.

TA-Oranges' mission was aimed at picking up two million new subscribers for the year 2002, this was a very bold objective and definitely had risks involved. Not knowing the diversity of TA-Orange's portfolio or how they funded this venture; I can only reasonably say that the risks being taken may be of a medium to high level.

As with all businesses, success and growth highly depends on the level of risk they are willing to take, and that involves decision-making.

The acceptance of risk for the potential of reward is at the heart of the entrepreneurial free-market system.(1) When making decisions involving risk the first step is to acknowledge the possibility of failure and to develop contingency plans that provide an alternate path for you to advance on your objective. The first step to minimizing risks is to answer the question, what can go wrong? The second step is to develop plans to combat possible situations; this will help to lessen the risk of failure. The third step is to develop contingency plans if failure does happen.

The first significant risk that I identified was that TA-Orange was entering the Thai...