enable Opal to maintain its current levels of success and profitability. 8
Firstly, since Chinese market has enormous potential, Opal needs continue to invest in
Section1
Question 1:
Part A
Given the competitive nature of the mobile telecommunications market analyse
the likely advantagesand disadvantagesto Opal of establishinga partnership
agreement with another company.12
Advantages:
Firstly, the partnership agreementscan provide Opal with technology assistance.It allows Opal for the
joint development of new products and the sharing of technology. Secondly, a Chinese partnershipnot
only gives Opal access to local knowledge but also provides an air of acceptability that is important
when conducting business in China. Thirdly, local firms
'
well -reputation and wealth of experience will
also help Opal to ensure that product development and customer service is specifically targeted at
meeting the local needs and demands of the local market. Fourthly, companies in partnership can
share the costs and reduce the risk.
Disadvantages:
As for the disadvantages, firstly, the own technology of Opal might be leaked because of the sharing
of technology which may result in the loss of Opal
'
csompetitive advantages. Secondly, in a
partnership with others, the control power of Opal company might be distributed because of the
consideration of other partners Thirdly, firms need to share the profits and there might be conflicts
since those companies are profitable organizations.
PART B
Identify and justify possible options the senior management may have which will
s
be
n