The instance discusses Dialog Telekom, one of the innovators in the telecommunication industry. The undermentioned study is prepared to acquire a brief thought of what are the strategic factors that are responsible for its success.
The study covers debut where a brief history of the company is discussed. It analyzes the micro and macro environment where the company ‘s cardinal strengths and its chances are deployed. From Porter ‘s Five forces theoretical account to value concatenation analysis, this undertaking goes in deepness with the Schemes and the strategic paths purpose of the company. The study has been briefed with the aid of decision and some recommendations.
Dialog Telekom, a subordinate of the Telekom Malaysia, which started up in late 90 ‘s, is Sri-Lanka ‘s largest Mobile phone web with 60 % market portion and 3 million endorsers. It operates the Dialog GSM, dialog Internet-a to the full fledged Internet Service supplier and the Dialog SAT ( the state ‘s innovator Mobile service supplier ) . It is listed in the Colombo Stock Exchange as a largest listed company with regard to Market capitalization ( being SL Rs.161 billion informations as on 30th September 2006 ) .
Dialog Global a trade name name under this company provides international services leting the entree to an international gateway substructure.
The signature being “ The Future Today ” , it works with a committed to accomplish trail in debut of engineering, Research and Development. With the launch of the General package wireless Services ( GPRS ) , its focussed attack made Sri-Lanka to stand among the first 40 states to come up with high Speed Mobile Based Packet Data Services ( 2001 ) .
The Dialog GSM extended its services from GSM to GPRS and shifted up to MMS ( 2002 ) and held a topographic point in the universe as among the first 35 webs present in the universe.
In add-on to all these the company has services like Mobile Banking, nomadic electronic mail, information, synergistic SMS, Business applications and other Value Added Services ( VAS ) . The Company has a Staff population of 150 people and provides a 24*7 service to the consumer.
After the lessening of the exchange rate from Rs50 per dollar to Rs108 per dollar, it launched the strategies in the liberalised economic system to derive net incomes which were test and mistake type attack. The company became the first telecommunication operator in South Asia to have ISO 9001 enfranchisement.
Liberalization if the International Telecom came up with an chance to establish the power trade name Dialog Global. The company has been running with a uninterrupted updating of sweetenings like micro image HCM platforms ( HRIS ) since 2001.
Table: Timeline for Dialog ‘s Success
Late 90 ‘s
Supported High Speed package based Mobile Data Service
National Quality Award ( Large graduated table service Category )
Asia Pacific Quality Award
Launched Satellite nomadic telephone.
Launched the power trade name “ Dialog Global ”
GSM universe Award
9.6 % of the Dialog ‘s interest opened for the populace
Macro Environment Analysis:
This is done under two wide classs viz.
Porter ‘s Five Forces Model
The PESTEL analysis chiefly monitors the Societal and Natural Environment. Picture1.png
Figure: PESTEL Analysis
Changeless terrorist activity during past two decennaries.
Company was under political reign before 2000 which was a cardinal factor in its less net income.
Due to the bureaucratic attitudes, political direct intercession, and hapless administration the growing of the company is non every bit much as was predicted during the liberalization.
Foreign investing policies are positive.
Trade Policy Regime and the macroeconomic environment is unstable.
Gradual autumn in the exchange rate over a period of clip.
Liberalization has brought over reforms in the sector.
The sector lags dynamism incorporated by other states for pulling Foreign Direct Investment.
Lower infant mortality rate.
Higher literacy rate.
Larger work force helps the company to acquire a good squad to work for the company.
Social conditions are better.
Life Expectancy is higher.
Discrimination is one of the predominating characteristics.
Encouragement of local research and development by Telecommunication Regulatory Commission of Sri Lanka ( TRCSL ) .
Adaptation to the technological alterations is hapless which makes the company hazard averse.
24*7 Consumer support, user friendly nature.
External work force is high.
Due to the cause of reusability it recycles the cell phones and the SIM Cards.
New cell phone with radiation free engineering which creates less harmful consequence to the surrounding.
Undertakings like enforcement of the policies reasonably, operator public presentation, Consumer issues, supervising industry demands and feedback support are done by the TRCSL.
Restricted to maintain monetary values harmonizing to the authorities regulations till 2000 i.e. before the liberalization took topographic point, caused it to derive lesser net incomes.
Maximum portion of the authorities in the net income earned.
Porter ‘s Five Forces Model:
Menace of New Entrant:
India ‘s largest Mobile operator AIRTELL has been provided licence as the fifth Mobile operator.
TRCSL has put a cheque for farther licensing.
Market faces entry barrier because of the technological leading of Dialog and TRCSL licensing policy.
Dickering power of the Buyers:
Less demanding client as compared to the western states.
Cost witting clients, prefer exchanging to take down rates.
Due to merely four service suppliers ( operators ) there is more bargaining power.
Loyalty in a fewer section of client is maintained by different Value Added Services ( VAS ) .
Menace of Substitute:
Very low menace due to replace.
Latest engineering is used exceling the lone option of fixed line and CDMA.
Smaller market of competition.
Rivalry among Rivals:
Dialog Telekom is holding an border over operators because of some services it provide and besides technologically it is sound.
There is ever a coverage and Price war between rivals.
The consumer gets attracted to VAS like Star Call, e-Channelling via Mobile.
Dickering Power of Supplier:
Dialogue has both Local and International Supplier.
Due to dependence on SLT, MTT and some other VSAT operators to entree the national Backbone it becomes favorable to the providers as they become Powerful.
Creation of a subordinate Dialog Broadband web with the Acquisition of the MTT made Dialog to capture a little section of the Supplier.
Micro Environment Analysis:
The Micro Environment analysis is done under three wide classs viz.
Evaluation of the Strategic Intent.
The company has a good bid over the public thought.
Strong Distribution web all throughout the island.
Technologically sound and is the first one to come up with GSM in the island.
It has a stable Brand Equity ground being the consumer trust and the aggressive selling Strategy.
It is involved in the corporate Social activity to a larger extent, and has really strong public relation.
It provides 24*7 client support and has a strong client base.
When comes to planetary coverage, it is best at this because of different confederation.
It has a high category substructure.
It helps the client choose within a broad scope of merchandises.
The squad responsible for the direction of all these activities is skilled and besides dedicated.
The Company is holding a hapless public presentation in the ISP.
It is innovatively slow in pricing every bit compared to the rivals.
In malice of Value add-on through proficient invention and a immense investing on advertizement it remains deprived of concentrating for a broader market.
Head Office at Colombo is of distributed nature because of the non expandability of the current location.
Motivation degree of the employees is diminishing because of multiple Schemes with higher impact and unmanageability which in bend is taking to Confusion and psychotic belief.
Decreasing Quality of Service as the client base is turning quickly.
The forepart office employee turnover is high.
The fixed line incursion is really low.
The telecommunication sector is one of the largest turning sectors of the state.
The communicating industry is developing.
It has been into strategic partnership with Vodafone, UK.
The users are adaptable to VAS, so it is easy for the company to present any new VAS engineering.
Promotion in the engineering with 3G nomadic communicating.
Licensing of India ‘s Bharti Airtel as the fifth operator which will be establishing its 2G and 3G nomadic communicating in 2007.
SLT, being the strongest rival focuses on Cost Leadership competitory advantage scheme with its low cost prepaid merchandises.
The alterations in the nature of the STEEP Factors.
The alteration in the Exchange Rates and rising prices is impacting the planetary concern adversely.
Demand of the client is of all time lifting twenty-four hours by twenty-four hours with the promotion of the engineering.
As there is terrorist act all over it is hard to be certain about anything.
Evaluation of the Strategic Intent & A ; the Strategic Routes taken by the company:
The Strategic Intent of the Company is reflected in the VISION, MISSION, CORPORATE VALUES, and ORGANISATIONAL GOAL Sand CULTURE of the company.
Table: Table for the Strategic Intent
Strategic Directions taken
As mentioned in the Signature line “ The Future Today ” , the Strategic purpose of the Company moves towards new engineering, R & A ; D.
Launched GPRS in 2001, a measure towards 3G
Introduction of MMS in 2002. ( among 1st 35 webs to back up it via Mobile )
Among the 1st 40 states to back up High Speed Mobile Data Service.
Launched Satellite mobile telephone under Dialog SAT in 2002.
Launched ISP with Telekom Malaysia in 1999.
Launched Dialog Global for international retail, sweeping, private web services ton peep in easy.
As mentioned in the Vision Statement “ To be the unchallenged Leader… ”
Gained National Quality Award in 2001.
Asia Pacific Quality Award in 2002.
First Telecommunication Company to present MMS, ISP, GSM in Sri- Lanka.
Approximately Half a million Consumers.
Increasing Customer Base.
As mentioned in the Mission Statement “ To Lead the Provision of engineering enabled connectivity… ”
Extensive Coverage via Thuraya Satellite Mobile Telephony Services, making to 3.2 billion people in 99 states across 3 continents.
Leading the engineering invention.
Harmonizing to the Corporate values Dialog is committed to: Entire Committedness… ”
It is committed to the clients with 24*7 support.
150 committed employees to work for the people.
Dialog is the innovator in telecommunication sector in Sri Lanka.
Competitive Strategic Groups:
Percentage of Equity ( scope )
Number of Investors
MTN ( Dialog ) , CELLTEL
Figure: Competitive Groups in Sri-Lanka Telecommunication
The Strategic groups in the Telecommunication industry in Sri Lanka has been divided on the footing of the figure of investors being how many major investors are at that place in the Company and the per centum of Equity being the scope of Stake given by it to them as a portion holder.
( I ) Dialog Telekom and Celltel comes under one strategic group as the equity portion per centum is 100 % and the major investors include Malayan Telekom ( Malaysia ) and MilliCom ( USA ) .
( two ) Mobitel, LCSL are in one Strategic Group. Their Equity Share being 100 % .
( three ) SLT on the other manus stands out of the Crew with its singularity of adding 0.5 % of workers portion later.
( four ) Suntel and LankaBell Are in one with Equity portion in a scope of 1 % -55 % .
Schemes Adopted by the company to derive Competitive advantage and comparative Recommendation:
Harmonizing to the Vision statement: “ to be the undisputedaˆ¦ ” , The Company is ever in a fury to be the First 1 for the debut of new engineering but in between it has someway neglected its employees who are twenty-four hours by twenty-four hours acquiring de motivated.
The Company can follow perpendicular growing Strategy with Stabilisation of the administration with the aid of which it can rejuvenate its employees.
It has employed different Schemes which in bend caused de motive of the employees like Acquisitions and puting on advanced development without refering the employees knowledge and accomplishments.
Harmonizing to the mission statement: “ to take the proviso of engineering enabled connectivity ” , Dialog follows Quality distinction leading scheme where it stands out of the crew by supplying latest engineering and that excessively be the 1st one to so with regard to others.
Here Dialog should take a expression at its cost where it lags to vie with others. It should get down up with some Schemes for cost leading to battle the lower cost fright of the other operators.
It should choose for corporate confederations so as to derive competitory advantage.
In position of the Signature line: “ The Future Today ” , The functional scheme of Dialog is developed with regard to the operations section.
It should work to implement cost Strategy. It focuses on Technology and research and Development as its chief map. As the signature says “ The Future Today ” , it should work to improvize the Research and Development tools.
Dialog Should Follow a smooth operations in different Fieldss it works in. Acquisition and Expansion of the concern will assist in it.
Human Resource Management:
The Company works on squad based working environment. It should instead work on the working squads which focuses on the completion of one end and is self managed excessively.
The company should work for its Technology and R & A ; D factor to acquire patented and some legal procedure to be taken on them so that it can do itself an outstanding organisation.
Dialog is the market leader in the telecommunication industry.
Dialog being the technological leader provides the consumer with best quality merchandise but at the same clip it lags when it comes to the cost portion.
The Company prides itself for it best technological services and the strategic moves it takes.
The 24*7 client support makes the company keep its client base.
The whole strategic interest of the company is under merely one Company i.e. Telekom Malaysia which prevents the company to look into other chances offered by other states.
The company has a good working environment inside and outside the organisation.
The Signature line “ the Future Today ” is assisting the company to go on with the excitement of the tendency of giving of all time newest engineering.