Competitive Strategy for Dialog Mobile

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Competitive Strategy

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Competitive Strategy for Dialog Mobile

Competitive Strategy

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ABSTRACT

The study aims at devising a competitive strategy for Dialog Mobile, the provider of mobile telephony services which is the core business of Dialog Telekom PLC. Dialog which currently has customer base of over 5 Million and a revenue share of over 60% is the market leader in Sri Lanka’s mobile industry. However due to aggressive competitor price wars, the entrance of multinational giants such as Bharthi Airtel, global and domestic economic downturn, fluctuating inflation and high cost of energy combined with a bullish expansion strategy, Dialog had to face a loss of Rs. 2.88 Billion in 2008 from a profit of 8.91 Billion in 2007. This forms the background for Dialog’s competitive strategy. Since the industry has an Oligopolistic structure, constant price wars are putting the industry at risk. In order to be sustainable in such an environment it is crucial that Dialog focuses on customer retention and acquisition via customer centric policies, processes and a culture of relentless pursuit towards exceptional customer service. This would have to be backed by lean processes, prudent investments and rigorous project management. Dialog should also consider the feasibility of following an outsourced model by handing over high cost activities such as network infrastructure management and IT to selected vendors.

Competitive Strategy

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Table of Contents

ABSTRACT ............................................................................................................................ 2 Introduction ............................................................................................................................. 6 Preliminary Business Analysis ................................................................................................ 7 Value Creation ..................................................................................................................... 7 Micro Economic Analysis ..................................................................................................... 10 Cost Structure .................................................................................................................... 10 Five Forces Analysis.......................................................................................................... 12 Existing Rivalry Amongst Competitors .......................................................................... 13 Threat Of New Entrants ................................................................................................. 13 The Power Of Suppliers ................................................................................................. 14 The Power Of Buyers ..................................................................................................... 15 SWOT Analysis .................................................................................................................. 15 Strengths......................................................................................................................... 15 Weaknesses..................................................................................................................... 16 Opportunities ................................................................................................................. 17 Threats ........................................................................................................................... 17 Market Structure & Customer Behavior............................................................................ 18 Dialog Telekom PLC Performance Review for 2008 ........................................................ 19 Macro Economic Analysis .................................................................................................... 23 Economic Forecast...
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