Assignment #1

Initiative # 7: Establish alliances

    Establish alliances is a modern strategy concept that is very important in today's business operations, allowing for less investment but more profitable returns. Forming an alliance is when more than one company cooperates for long-term or short-term cooperation. It brings together the strengths of all parties to achieve common strategic goals. An example of a business that has established an alliance is True Corporation and Total Access Communication Company Limited (DTAC).

    True Corporation It is a company that everyone knows is a telecommunication and communication service provider, such as home internet, mobile internet, satellite signal, etc. It used to be a joint venture between the Charoen Pokphand Group and the French company Orange After that, the French company Orange had to withdraw its shares, making CP a major shareholder, and the company has developed until the company is famous and has many customers from True Corporation. There are 30.3 million customers using the mobile network. Which is considered to be the second largest market share in the AIS network. (Refer to the quarterly reports of each company.)

    Total Access Communication Public Company Limited (DTAC) is a mobile telecommunication network company in Thailand. DTAC is the company with the lowest percentage of users in the Thai market among mobile operators, with only 19.62 million numbers. This may be because, in the opinion of the author, the stability of the system is low stability. Because of the poor service staff, DTAC is not as popular as other phone networks.

    The business alliance was formed through the merger of the two companies, True and DTAC. The news has spread and the two companies have come out to accept and inform the public that there will be a real business alliance. By the time the merger of the two is completed, it will be the most used communication business and may have both good and bad impacts. That is the event ahead. I see that this trade alliance between the two companies makes the market oligopolisticwhich will affect the economy in the future. And I'm afraid that in the future, if the alliance between True and AIS occurs, the mobile network market and the services they provide will create an economic monopoly, which may lead to usersgaining benefits. It has effects such as inflated service charges, and it cannot in any way affect other competitors.

Reference :

https://www3.truecorp.co.th/new/about_true
https://www.dtac.co.th/about/history.html
https://www.thairath.co.th/business/feature/2252492