External Analysis for Dialog Telekom Sri Lanka

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Contents

Executive Summary2
Company Background3
Issues Faced6
Competitor Analysis7
Porters Five Force Model9
PEST Analysis13
Factors responsible for Dialog’s Decline16
Strategies19
Strategies implemented by Dialog20
SWOT Analysis23
Conclusion25
Reference26

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 3.5G communication networks. Dialog was the first company in South Asia to launch 3G and HSPA+ operations. In addition to being a mobile operator, Dialog also operates a portfolio of other services such a Dialog TV, Dialog Broadband Networks, Dialog global and Dialog Tele- infrastructure. Dialog was also the first mobile operator to enter into Jaffna in the Northern part of the country during the ceasefire agreement in the year 2002. And at present it has 80% of the market share in that region. Dialog Axiata is considered as an investor under the Board of Investment in Sri Lanka. Dialog is the largest telecommunication investor in the country and has contributed over 1 Billion USD towards the enhancement of the telecommunication infrastructure in Sri Lanka. As per Dialog’s 2010 Annual Report the company is still the leader in the mobile sector with 55% revenue share. Vision

“To be the undisputed leader in the provision of multi-sensory connectivity resulting always, in the empowerment and enrichment of Sri Lankan lives and enterprises.” Source: http://www.dialog.lk/about/overview/corporate-profile/our-values/

Mission
To lead in the provision of technology enabled connectivity touching multiple human sensors and faculties, through committed adherence to customer-driven, responsive and flexible business processes, and through the delivery of quality service and leading edge technology unparalleled by any other, spurred by an empowered set of dedicated individuals who are driven by an irrepressible desire to work as one towards a common goal in the truest sense of the team spirit. Source: http://www.dialog.lk/about/overview/corporate-profile/our-values/

Corporate Values
* Total commitment to our customers
* Dynamic and human-centered leadership
* Commitment to task & excellence
* Uncompromising integrity
* Teamwork
* Professionalism and accountability
* Foremost respect for concern...
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