China Unicom Case Study

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advantage Capital gains considerable With the formation of the strategic partnership, China Unicom received considerable capital gains SK bought 7% of the shares of China Telecom in USD 1 billion in China Unicom bonds.This gives the ability to invest in the company or even other business areas and enable growth. Optimize technological networks. Optimize technological networks. Before the strategic alliance, China Unicom suffered an obsolete technology, which is always set back a mile making it difficult for him to compete for the market.The alliance enables China Unicom to enjoy the technological networks that SK Telecom carries . This enables China Unicom to provide better services and products in the shortest time possible and allows you …show more content…

One of the reasons for the formation of China Unicom was to bring in competition and monopolies break which was a difficult task when CMHK and Vodafone joined in a strategic alliance. This is because, with the alliance, CMHK gained a greater advantage in technology, knowledge, better production that sets the high rate of China Unicom. Therefore, the strategic partnership between China Unicom and China Telecom Unicom S.K allowed to compete favorably as they had gained a technological edge. Share the financial risk. China Unicom and S.K can make use of the strategic arrangement to reduce the financial risk of their individual company. For example, when two companies jointly invested with an equal part in a project, the greater potential that each stand to lose is only half of the total project cost if not the company. Achieving synergy and competitive advantage. Share the financial risk. China Unicom and S.K can make use of the strategic arrangement to reduce the financial risk of their individual company. For example, when two companies jointly invested with an equal part in a project, the greater potential that each stand to lose is only half of the total project cost if not the

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