An Introduction To Dialog Telekom Ltd Business Essay

An cornerst oneness To talks Telekom Ltd Business Essay dialog Telekom PLC (The fraternity) ope grazes Sri Lankas largest and quickest suppuration tele chat net cook Dialog GSM. Dialog Telekom is one of the largest companies listed under the Colombo cable Exchange. It is a subsidiary of the Axiata Group Berhad. imputable to Dialog the Sri Lankan alert application has achieved new heights and has come at par with the developed world.The telecom comp some(prenominal) operates 2G, 3G and 3.5G spry services, supporting the underway trends in mobile net and mul perioddia services, as well as international roaming. Dialog Telekom accounts for more than than 50% of Sri Lankan mobile phone subscribers.Along with the mobile telecommunication vocation Dialog Telekom operates a wide portfolio of international telecommunication services including retail and wholesale international voice and data services.Dialog Broadband Net working Pvt. Ltd. (DBN) is an owned subsidiary of the Com pany, and is an important player in Sri Lankas ICT infra social structure sector. DBN was also the prototypic service provider in Sri Lanka to introduce high-speed broadband net profit services based on Wi MAX technology.Dialog Television Pvt. Ltd. (Dialog TV) is some new(prenominal) subsidiary of Dialog Telekom PLC. It operates Dialog Satellite TV, a Direct-to-Home (DTH) Satellite TV service. Dialog TV supports a wide range of international and local anesthetic television channels.Regarding the structure of the company, Dialog Telekom Ltd. has got a Hybrid structure which is a combination of Matrix structure as well as standard structure. As in each Strategic Business Unit (SBU) works independently and e truly function of each SBU has communication linkages with one an an otherwise(prenominal). net down as well as bottom up communication is available and it riding habits worldwide resources and technologies.MICRO ANALYSIS THROUGH SWOT psychoanalysisStrengths1. Dialog has t he first m everywhere advantage of GSM technology in Sri Lanka.2. Due to its strong infrastructure it has got one of the surmount and far reaching mobile telecommunication c everyplaceage.3. Relationship with a telecommunication tycoon in the said(prenominal) region Telekom Malaysia Group.4. Extension in collaborations maintaining good relations with other telecommunication companies has enabled Dialog to leave a global approach with services very much(prenominal) as and Satellite Coverage high roaming.5. Dialog Telekom has got a very aggressive securities industrying system which enables it to control a good and constant Brand Equity.6. Companys financial analysis proved excellent stability in financial statements regarding investments.7. Strong Public Relationship that has been built up over the years.8. Expanded CSR initiatives increased the social lever of the firm.9. High quality expert foul innovations has made dialog market leader in Sri Lanka.10. Constant pinch in the shargon prices has get intoed the confidence of the investors leading to value increment.11. Strong dispersal network spread throughout the entire island..12. Well managed customer charge support techniques has increase the level of customer satisfaction.13. Wide variety of products.14. focus Team is efficient and hard-working.15. High level of corporate bloodline intimacy retention through low employee turnoverWeaknesses1. Though the investment on advertising and value addition through technical innovation is high, in that location is no clear aim and idea of a broader market2. despicable performance as on ISP.3. Compargond to its competitors Dialog lags behind in innovations link to pricing strategies.4. The head office in Colombo is of a distri plainlyed character due to non-expandability of the current location.5. The level of motivation of internal employees is decreasing.6. Due to the quick growing customer base the trends in fictitious character of work ar gon going down by the day.7. In the front-office employee turn-over is high.Opportunities 1. Telecom is one of the fastest growing sectors in Sri Lankas 19.5million people2. As per estimations 4.5million users would feed mobile phones by the end of 20063. The communication industry is growing rapidly.3. Fixed line perceptiveness is low.4. The approval and acceptability of the Value Added go (VAS) by the users has increased the luck and success of any new VAS initiative.5. The strategic partnership of Dialog Telekom with Vodafone UK.6. Dialog has got the potential to gain benefits of Value Chain Convergence.7. engineering advancements in particular in mobile multimedia technologies and the advent and use of the next 3G mobile communications.Threats1. The existence of all the other collar GSM Mobile service providers incur a big threat to Dialog Telekom.2. Indias Bharti Airtel Ltd. has got the clear to be the one-fifth mobile operator in Sri Lanka and launch the 2G and 3G serv ices in 2007.3. The three existing CDMA service providers also pose a variant benign of threat.4. Strongest Competitor of Dialog, the Mobile wing of fixed line telecom whale SLT is focused on address-cutting schema through its low cost pre-paid products in the market.5. Rapid changes in the semipolitical, social and economic conditions as well as the laws and regulations.6. Changes in currency exchange rates and high inflation which is in return affecting the global line of merchandise.7. Rapid change in customer preferences and their growing inescapably due to high level of customer awargonness.8. Constant changes in technology.9. Dialog had to switch off all base station in northern-province during the operate few months due to military operations by the Sri Lankan Govt. forces. hence there is an uncertainty due to the growing counter terrorist campaigns.PESTEL Analysis semipoliticalSri Lanka has very positive foreign investment policies. save though Sri Lanka identify richness of liberalization early as in 1977, due to political interventions bureaucratic attitudes inherited from colonial reign and poor governance, the country as a whole and specifically the industry has not grown as it was foreseen at the time of liberalization. During the past two decades, terrorist activities have remained constant as well.EconomicalUnstable macro-economic environment and trade polity regime has a negative impact on the industry. The fall of the exchange rate over the years happened on a gradual pace.Since the inception of liberalization policy it has undergone massive reforms in this sector. However Sri Lanka lags dynamics incorporated by India to realize foreign direct investments. The attitude towards foreign direct investments needs to be improved.Socio-CulturalSri Lanka has better social conditions for example literacy rate is high, infant mortality rate is low and life expectancy is long. The country also has an educated and trainable work force.Neve rthe slight Sri Lankans inherit a bureaucratic attitude from the colonial government that results in inefficiencies and discrimination.TechnologicalSri Lanka depends on technology transfers from foreign direct investments. However TRCSL encourages local research and development.The country comparatively has not performed well decent to adapt technological changes on a timely manner. For example the charge from analogue to digital and the adoption of CDMA technology materialized in a in arrears pace.Ecological LegalTRCSL the regulatory body wreaks up multidimensional roles. It ensures somewhat enforcement of Govt. policy, hold operators accountable for performance, address consumer issues, monitor changing industry needs and provide feedback to the policy making units.However TRCSL has been criticized over the years for schooling asymmetry, inefficiency and discrimination.Porters Five Forces 1. Threat of New Entrantsa. Indias Bharti AIRTEL has got the fifth mobile operator li cense in Sri Lankab. As per TRCSL, no more licenses would be awardedc. Thus it piddles an intro barrier for all others to the market2. Bargaining precedent of Customersa. Consumer protection groups argon almost non-existingb. As compargond to the west, consumers ar not that strong in their demandsc. Quality standards and supports are comparatively not major concern if they exist at a basic leveld. Low switching costse. Customers are highly cost conscious3. Threat from Substitutesa. Almost negligibleb. Alternatives are fixed line and the more recent CDMA connectivityc. This is a much littler market as compared to the huge total market4. Bargaining Power of Suppliersa. Local and multinational suppliers for Dialogb. Depends on SLT, MTT and a few other VSAT operators to access the national backbonec. Thus these particular suppliers are passing powerfuld. Acquisition of MTT and the creation of the new subsidiary known as Dialog Broadband Network5. Rivalry Among Competing Firmsa. V ery high disceptation with constant pricing warsb. Dialog certainly has an edge because of their Value Added operate and differentiation strategy and the huge customer basec. Value Added Services are becoming very hot among the consumersStrategic Groups Adopted by the CompanyDialog strategies are visible in the companys corporate, line of merchandise and practicable levels. They have already diversified their business across many areas during the last few years. For instance, by acquiring MTT, Dialog managed to strengthen its transmission backbone. in addition recent past it has acquired CBNSAT, a satellite TV transmission company, and DERANA TV Channel with a long term physical object of a value string convergence. In addition to reach the customer, Dialog has created many alliances with other business corporations. Cargills-Dialog alliance to allow Cargills customers to settle Dialog bills is just one such example.The business plan is formulated at the beginning of the yea r considering main objectives of the company. The progress of each project is monitored in a periodic basis through different strategic committee meetings.On the other hand, Dialog tries to introduce latest technologies into the market considering global mega trends through its plenary Research and Development wing.ServicesYear of ImplementationRemarks01Introduction of GSM Technology19951stin southeasterly Asia02Short Messaging Service (SMS)19981stin South Asia03Automatic International Roaming (AIR)19971stin South Asia04WAP (Mobile Internet)20001stin South Asia05General Packet Radio Service (GPRS)20011stin South Asia06Location Based Services (LBS)20031stin Sri Lanka07Missed Call Alert20031stin Sri Lanka08 multimedia system Messaging Service (MMS)20031stin South Asia09Trial 3G Service20041stin South Asia10Call Home Service for Outbound Roamers20041stin Sri Lanka11EDGE Service20041stin Sri LankaAmong them, the Dialogs initiative to setup the Dialog Research Lab at the University of Moratuwa is of importance because it in effect enabled Dialog to provide tailor made solutions to the local market. Nokia phones with Sinhala language support and Tsunami warning system for mobiles are just to place a few such examples. These technology initiatives force out be considered as a strategy used to capture the market by effectively staying ahead from the competition in the technology and innovation sphere.StructureThe Companys business and operations are managed under the supervision of the Board of Directors comprising of 5 non-executive directors and 1 executive director. The Board has the power to appoint executive directors including the CEO. Divisional structure do-nothing be identified in company level but performances of the divisions are measured through different strategic committees.SystemsApart from the technical backbone, Dialog uses several systems to execute their business strategies successfully. For example-SAP ERP (Enterprise Resource Planning) This was launched in 2006 January to integrate identified key process in the company.CCBS (Customer Care guardianship System) Currently existing billing system is going to be migrated into a new system to provide more customer centric services.HRIS utilise for Human Resource Management and all the day to day functions are carried out through this system.StyleThe management style always depends on targets and objectives. Strict deadlines are imposed while performance and progress are very closely monitored at all levels of the organizational structure. Rewards and benefit schemes are in line for the top performers and better achievements.All the employees go forth have a number of recreational opportunities such as trips, get-together, sports etc. to take some time off from busy work schedules.StaffThe Company currently employs a workforce of 2500 who in turn are considered crucial to the organizations growth and success. Annual manpower planning and recruitment is carried out in p arallel with the business plan preparation. The capabilities required by potential employees are based on the requirements of the business plans applicable to respective departments of the company in any given year. Recruitment to the Company is governed by several policies. The mettle policy on filling vacancies spells out the Companys intention to attract the best with the aim of exploiting the individuals potential while providing career development opportunities irrespective of communal or gender differences. 7% of the total HR cost is devote to training and development. The training needs for individuals and aggroups are identified from the competency requirements arising from the Companys business plan and employees annual performance review.Subordinate GoalsAll individuals with different backgrounds, different ethnics and nations are aggrouped up and driven towards a common set of goals and objectives at Dialog Telekom. The company has been successful in focusing the enti re team towards a single vision by incorporating all individuals goals and personal objective together.SkillsDialog team consists of number of individuals with distinctive capabilities and competencies from top to bottom. Dialog is purple to have a very energetic and endowmented CEO in the caliber of Dr. Hans Wijesuriya. In addition to that Dialog is served by a team of top class individual in the Sri Lankan industry with lot of talent and exposures.Different Strategies Adopted by Dialog TelekomCorporate outlineConsidering the current performance, the key success movers and the SWOT analysis the directional strategy utility(a)s would be the pass offing Growth strategy to expand the activities of Dialog Telekom further would be the first substitute. Since the current product lines have real growth potencial soaking up of resources on those would be ideal. In concentration Dialog Telekom can follow the vertical growth strategy to take the benefit of the value bowed stringed i nstrument convergence opportunity that is existing in Sri Lankan context.Stability strategy to traverse with current activities without any changes to the direction would be the second alternative. Here Dialog Telekom can utilize pause/proceed with caution strategy to have yet incremental improvements while the weaknesses stated are catch up with. It can use this time to stabilize the organization due to the changes took place due to sixfold strategies it adopted earlier such as acquisitions and investing on sophisticated developments, which will help to get back the loosing internal employee motivation.The first alternative will move Dialog Telekom further away from the competition and create a monopoly temporarily for converged industries of telecommunication, content, media and retail. However unfocused highspeed growth to capture the market without stabilizing the existing acquisitions can disassemble everything. The second alternative will give Dialog Telekom and its employ ees much needed breathing space.The recommendation would be to implement the second alternative initially to stabilize the organization without any other drastic change in the direction. And after some time they can adopt their long term beneficial value chain convergence option depicted in first alternative.Business StrategyThe business strategy alternatives available for Dialog Telekom to improve the competitive mystify in the industries it operates would be The first alternative for the competitive strategy would be to improve on the current strategy of differentiation. It can improve this by having unique Value Added Services for each of its current strategic business units DBN, CBNSAT and Dialog Telekom itself. This can improve the customer loyalty and thereby can charge a reasonable premium rate than competitors.Second alternative which Dialog Telekom can try to implement is cost leadership to overcome the threat of lower rates provided by competitors, Mobitel. Since the VAS are less in Mobitel the switching from Dialog to Mobitel is not much in urban people who use these VASes. But people who are using purely as a voice/sms only are shifting as most of them are cost conscious and there is not much of a difference in coverage. Hence if Mobitel improves on its VASes it would become a serious threat at a stage at which only the rates would decide the attraction of that segment of the market.Typically the differentiation strategy is more likely to generate higher(prenominal) profits than low cost strategy. However differentiation strategy implementation may involve higher investment than low cost strategy.Competitive scope is an important factor when considering competitive strategies. The recommended alternative depends on the competitive scope in this situation. Considering two alternatives and the pros and cons of each most ideal would be to have culmination of some(prenominal) differing from the segment of the market. Dialog Telekom should have a fo cused differentiation strategy in the market where people are valuing the VASes and cost focus in the market where usage is purely for voice/SMS.Simultaneously Dialog Telekom should get word at strategic alliances as a corporate strategy to gain competitive advantage by working with other organizations. Currently they have stated this with some banks and some supermarket chains as mentioned earlier. However this can be vastly improved to include alliances with insurance companies, stock brokers, popular food chains etc.