HND大综合1GU1答案.docx

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

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Chinese market to gain more market shares for its expansion.

Secondly, Opal can sign the partnership agreementswith more companies, to gain more comprehensive market information and share the technology and develop new products.

Thirdly, in order to maintain the characteristics and good reputation, Opal needs to keep the strong stance in relation to the environment, use more green and environmental materials to produce

‘ environmentally friendly ' products and services and keep offering a comprehensive mobile phone recycling scheme.

Fourthly, it is necessary to deepen the agreement with Huawei, since Huawei is a long established and well-respected player in the Chinese telecoms market. By doing so, Opal can achieve the further expansion.

Question 2

PART A

Assessthe strengthsand weaknessesof Opal as they seek to expanding in the

coming years. 12

Strengths

Firstly, the further deregulation of the telecommunications markets enabled Opal to capitalize on a number of opportunities.

Secondly, Opal has its core markets, and the recent ‘ openin-gup'of the Chinese market is currently providing Opal with opportunities for further expansion.

Thirdly, the mobile devices division has allowed Opal to sell their phones to competing networks allowing access to a much larger market.

Fourthly, as their characteristic, Opal has adopted a strong stancein relation to the environment, and they were one of the first phone manufacturers in the world to offer a comprehensive mobile phone recycling scheme and offers environmentally friendly products and services.

Weaknesses

Firstly, the first hand-held phones were high priced because of the high research and development costs and the need for highly specialized production facilities. And this may cause the needs of a large amount of investment capital and the decrease in sales. Secondly, Opal is a medium sized producer of handsets, which means it owns limited produce resourcesand investment capital resources. It may not be able to meet the needs of cooperation with other companies.

Thirdly, the regulatory complexities of operating within the Chinese market may hinder the development and expansion of Opal.

Lastly, the regulatory complexities of operating within the Chinese market and the fierce competition