External Analysis for Dialog Telekom Sri Lanka
Contents
Executive Summary 2 Company Background 3 Issues Faced 6 Competitor Analysis 7 Porters Five Force Model 9 PEST Analysis 13 Factors responsible for Dialog’s Decline 16 Strategies 19 Strategies implemented by Dialog 20 SWOT Analysis 23 Conclusion 25 Reference 26
Executive Summary
Dialog Telekom PLC is a Malaysian based MNC functioning in Sri Lanka. It has been the market leader in the telecommunication industry up to the year 2007. But the company incurred huge losses in the year 2008 & 2009 and this as a result of this the company’s market reputation and image declined. The Annual reports of the company showed that their financials were widely fluctuating and with the increase in the number of competition Dialog was finding it to maintain their position as the market leader. The following report outlines the issues that Dialog faced during this period, the reasons for their sudden decline and also the strategies that they implemented to overcome the above situation. The report also analyses the successfulness of the strategies that they have already adopted and also what they can do further to improve their market position.
Company Background
Dialog Telekom is a telecommunication service provider in Sri Lanka which operates Dialog GSM. It is the largest telecommunication service provider in the country and has the largest network for mobile phones with over 6 million subscribers. Dialog was listed in the Colombo Stock Exchange in 2005 and it is a subsidiary of the Axiata Group Berhad. In terms of market capitalization it was the first in the country with USD 1 Billion market capitalization in the Colombo Stock Exchange. Dialog was the fourth entrant to the Sri Lankan Cellular market and it launched its services in the year 1995. It was the first mobile operator to introduce international roaming to the region in 1997. Dialog function on 2.5G, 3G and
Executive Summary 2 Company Background 3 Issues Faced 6 Competitor Analysis 7 Porters Five Force Model 9 PEST Analysis 13 Factors responsible for Dialog’s Decline 16 Strategies 19 Strategies implemented by Dialog 20 SWOT Analysis 23 Conclusion 25 Reference 26
Executive Summary
Dialog Telekom PLC is a Malaysian based MNC functioning in Sri Lanka. It has been the market leader in the telecommunication industry up to the year 2007. But the company incurred huge losses in the year 2008 & 2009 and this as a result of this the company’s market reputation and image declined. The Annual reports of the company showed that their financials were widely fluctuating and with the increase in the number of competition Dialog was finding it to maintain their position as the market leader. The following report outlines the issues that Dialog faced during this period, the reasons for their sudden decline and also the strategies that they implemented to overcome the above situation. The report also analyses the successfulness of the strategies that they have already adopted and also what they can do further to improve their market position.
Company Background
Dialog Telekom is a telecommunication service provider in Sri Lanka which operates Dialog GSM. It is the largest telecommunication service provider in the country and has the largest network for mobile phones with over 6 million subscribers. Dialog was listed in the Colombo Stock Exchange in 2005 and it is a subsidiary of the Axiata Group Berhad. In terms of market capitalization it was the first in the country with USD 1 Billion market capitalization in the Colombo Stock Exchange. Dialog was the fourth entrant to the Sri Lankan Cellular market and it launched its services in the year 1995. It was the first mobile operator to introduce international roaming to the region in 1997. Dialog function on 2.5G, 3G and