Essay --

Risks Summary This case is about the aggressive price behavior of the TA Orange that has recently been in the joint venture with other Thai companies. Risks The risks that TA Orange faces while entering in to the Thai market are as follows: Lower profit margin risks Shareholders’ risk Increased competition in the market risk and market saturation risk As the joint venture between TelecomAsia-Orange and Thai companies CP Group and TelecomAsia and France's Orange SA adapted the strategy of aggressive price-cutting strategy aimed at picking up a million subscribers in 2002. This strategy has increased the risk of price wars between the service providers and as experts like J. P. Morgan points out, this would let them lower their profit margins, and eventually this price war would end up eroding all the profits that was initially intended. As indicated â€Å"all of this threatens to erode margins across the board, analysts warn, with the prospect of declining handset sales cast ing particularly long shadows over the profit profile at AIS. Last year, AIS derived nearly 35% of its net profit f...