Title: Achieving a competitive edge through merger: evidence from telecoms industry of Bangladesh

Authors: Jashim Uddin Ahmed; Hafiza Sultana; Nusrat Jahan; Nabila Nisha

Addresses: Department of Management, School of Business and Economics, North South University, Bashundhara, Dhaka 1229, Bangladesh ' InterResearch, Road 3, Block I, Bashundhara, Dhaka 1229, Bangladesh ' InterResearch, Road 3, Block I, Bashundhara, Dhaka 1229, Bangladesh ' Department of Accounting and Finance, School of Business and Economics, North South University, Bashundhara, Dhaka 1229, Bangladesh

Abstract: This research aims to analyse the historic merger between Robi and Airtel, two major telecom operators in a developing country, Bangladesh. There were six operators in the telecoms industry with Grameenphone as the dominant leader. Amid the fierce competition and price war, the merger has taken place and formed consolidated Robi Axiata, with the goal of developing the number one cellular network with widest coverage and the second largest operator of the country. The estimated outcomes of the successful merger are higher profitability and market share, increased subscriber base, higher economies of scale, financial stability, improved spectrum, extensive sale and distribution channels, etc. which will ultimately lead to a sustainable competitive advantage. However, while Robi Axiata has become the second largest telecoms operator, it has a lot to accomplish in order to improve financial performance and develop a competitive edge in the long-term. In addition, the gains from the merger are expected to be realised by the stakeholders, companies, industry, and customers. Currently, the consolidation has started a new era in Bangladesh economy and its actual benefits can only be verified in the future. With profound qualitative analysis, the study offers valuable managerial and policy implications.

Keywords: Bangladesh; merger and acquisition; Robi Axiata; Airtel; mobile; telecoms.

DOI: 10.1504/IJSBA.2018.094493

International Journal of Strategic Business Alliances, 2018 Vol.6 No.3, pp.166 - 180

Received: 08 Nov 2017
Accepted: 06 Jun 2018
Published online: 03 Sep 2018 *

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