The BRAC net-KDDI alliance
Wednesday, 23 December 2009
Fahim Salek
STRATEGIC alliance is the name of the game for companies to survive in a world that continually reinvents itself, whether or not 'history repeats itself. Business is getting competitive and volatile across the world due to 'globalisation'. When the challenge is global, the response has to match it. Thanks to communication network which was unthinkable two decades ago, it is no problem for economies, businesses, and cultures to come closer to integrate. The speed of communisation is doing miracles in the world's markets and businesses, getting more and more interdependent. Inability to adapt to the rapid changes could put survival at stake. The consequent rule of the thumb is, the companies need to compete globally for survival. The companies must diversify and consider the issues needed for expansion. The means to rescue and globalise businesses is, of course, 'strategic alliance,' an invention out of necessity.
Strategic alliance can be conceptualised as a marriage between companies or a tie-up between two or more of them through acquisition or other means. A common strategy can bring the parties together for global business advantage. The partners have to share their strengths to overcome weaknesses, pull together their resources for investment for mutual gain. Like in marriages, the partners have to make sure the alliance does not end up in a divorce.
The power generated by an alliance facilitates grip on foreign markets as KDDI, the Japanese telecommunications giant has demonstrated by stepping ahead of its competitors in Bangladesh by trying up with BRAC net. The recent strategic alliance between KDDI Japan and BRAC net quoted a positive synergy for both the entities. Under the arrangement, KDDI is expected to 50 per cent of BRAC net's share. It will be a partnership to win new businesses in Bangladesh. The synergies generated with KDDI's technological prowess and ICT business experience and BRAC's goodwill and network can do broadband miracles across Bangladesh. Affordable internet and data connectivity to the masses of Bangladesh is the core objective of BRAC net. The alliance can facilitate rapid digitisation of Bangladesh.
Bangladesh has been awaiting faster Internet connectivity, replacing its slow service providers. Companies, with small investments, obviously cannot do it. The Internet market in Bangladesh needs to grow rapidly. It needs big investment. The tie-up between BRAC and KDDI would find the market ready for them.
Technology, which needs investment, can infuse dynamism into the ISP industry to make it customer-oriented. The customers, or the users, are ahead of the service providers.
Bangladesh provides immense opportunities for the growth of Internet service.
The economic downturn saw businesses wind up or merge around the world. It should not be difficult for the BRAC net-KDDI alliance so compete internationally as well.
A business administration graduate from Anglia Ruskin University, UK, the writer, a businessman, can be reached at
ae-mail: fahim032003@yahoo.com
STRATEGIC alliance is the name of the game for companies to survive in a world that continually reinvents itself, whether or not 'history repeats itself. Business is getting competitive and volatile across the world due to 'globalisation'. When the challenge is global, the response has to match it. Thanks to communication network which was unthinkable two decades ago, it is no problem for economies, businesses, and cultures to come closer to integrate. The speed of communisation is doing miracles in the world's markets and businesses, getting more and more interdependent. Inability to adapt to the rapid changes could put survival at stake. The consequent rule of the thumb is, the companies need to compete globally for survival. The companies must diversify and consider the issues needed for expansion. The means to rescue and globalise businesses is, of course, 'strategic alliance,' an invention out of necessity.
Strategic alliance can be conceptualised as a marriage between companies or a tie-up between two or more of them through acquisition or other means. A common strategy can bring the parties together for global business advantage. The partners have to share their strengths to overcome weaknesses, pull together their resources for investment for mutual gain. Like in marriages, the partners have to make sure the alliance does not end up in a divorce.
The power generated by an alliance facilitates grip on foreign markets as KDDI, the Japanese telecommunications giant has demonstrated by stepping ahead of its competitors in Bangladesh by trying up with BRAC net. The recent strategic alliance between KDDI Japan and BRAC net quoted a positive synergy for both the entities. Under the arrangement, KDDI is expected to 50 per cent of BRAC net's share. It will be a partnership to win new businesses in Bangladesh. The synergies generated with KDDI's technological prowess and ICT business experience and BRAC's goodwill and network can do broadband miracles across Bangladesh. Affordable internet and data connectivity to the masses of Bangladesh is the core objective of BRAC net. The alliance can facilitate rapid digitisation of Bangladesh.
Bangladesh has been awaiting faster Internet connectivity, replacing its slow service providers. Companies, with small investments, obviously cannot do it. The Internet market in Bangladesh needs to grow rapidly. It needs big investment. The tie-up between BRAC and KDDI would find the market ready for them.
Technology, which needs investment, can infuse dynamism into the ISP industry to make it customer-oriented. The customers, or the users, are ahead of the service providers.
Bangladesh provides immense opportunities for the growth of Internet service.
The economic downturn saw businesses wind up or merge around the world. It should not be difficult for the BRAC net-KDDI alliance so compete internationally as well.
A business administration graduate from Anglia Ruskin University, UK, the writer, a businessman, can be reached at
ae-mail: fahim032003@yahoo.com