A Research Study submitted in partial fulfillment of therequirements for the degree of Master of Business Administration in Management of Technology.

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1993

The structure ofthe Thai telecommunications industly has changed dramatically over the last two years. In an attempt to meet the ever growing national demand for telecommunications services, the Thai government has decided to partiallyprivatize the telecommunications industry. Under the new structure, a concession for the construction, operation and maintenance ofthree million additional telephone lines was to be awarded to the private fi1mlconsortium that best met government requirements. · Subsequent to the announcement of the competition, several consortiums and strategic partnerships were formed. Amongst them were leading telecommunications fi1ms from France, England, Ge1many, the United States, Hong Kong and Singapore. Strategic groupings and alliances were f01med based on perceived needs and available technological and complementary inputs. Given the size and resource requirements of the project, many fi1ms felt that it was better to cooperate and compete rather than to compete alone. With rapidly changing demands and the phenomenal rate of technological advancement in telecommunications and related areas, strategic alliances appear to be necessary in order to be well positioned for international competitive tenders. However, synergistic benefits from partnership and cooperation must be accompanied byfitm specific advantages, and occasionally home government support. The strength ofa consortium is defined by the competitive forces of the partners, and the extent to which they complement each other. This research examines factors that may influence the competitiveness ofa firm in the global competition for telephone concessions. A framework is developed to examine the strengths and weaknesses offirms with emphasis on international aspects and the role of strategic alliances. This framework is then applied to an international telecommunications corporation currently competing for telecommunications contracts in Thailand.