Prepared By Al Tarak Mahmud Tanim ID: 2018210005024
28th Batch
Date: 14 May, 2020
Q1. Corporate-Level Strategy Airtel Bangladesh. Answer: Airtel Bangladesh follow the Horizontal Integration method in the Corporate Level Strategies. Horizontal integration is the acquisition of a business operating at the same level of the value chain in a similar or different industry. This is in contrast to vertical integration, where firms expand into upstream or downstream activities, which are at different stages of production. Before merging with Robi Axiata, Airtel was in the lower position in the mobile industry of Bangladesh. After merging with Robi, Robi-Airtel becomes the second largest mobile operator in Bangladesh. So, this is Horizontal Integration for Airtel Bangladesh.
Q2. Bangladesh purchases refinery oil?
Answer: Bangladesh will import some 1.4 million tons of crude petroleum oil from Saudi Arabia and Abu Dhabi in the year of 2020. The BPC will import the entire bulk crude oil to refine it in its Eastern Refinery Limited (ERL) for supplying to the local market. In this case Bangladesh follows Taper Integration method on the Vertical Integration process.
Q3. Forward and Backward Integration: The Smartphone
Industry? Answer: When a Chinese Smartphone manufacturer opens a unit of which manufactures mobile chipset and supplies to the smartphone unit. Thus in earlier cases, the Smartphone Company had to purchase chipset from any other chipset manufacturing company and the manufacturing costs bear a specific part of the profit which was being enjoyed by the chipset manufacturer. Thus after in-house chipset manufacturing, the profit remains with the smart-phone manufacturer. In the case of forwarding integration, we can take an example of Indian Company Avanti Feeds, which cultivates Shrimp-feeds used for the feeding of processed shrimps. Now after running the shrimp feeding business successfully, the company has decided to enter into processed shrimp business. Thus process-shrimp business turned out to be very profitable and it contributed to the margin healthily along with the increase in Revenue.