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UNIVERSITY OF WEST LONDON

The Claude Littner Business School

MBA

Assessment 02 : Individual Report

Module: M70093E - Strategy and Entrepreneurship

Student Number (UWL Registration Number): 21419546
Student Name: D P L Senuree Hasara Magedera
Assignment Name: TOWS and Strategy Implementation – Dialog Axiata
Lecturer Name: Suresh Mohamed
Word Count: 2596 (Excluding Table of content, abstract and references)

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TABLE OF CONTENTS

Acknowledgement 03
Chapter 01: Introduction
1.0 Overview to the Company 04
1.1 Objective of Study 04
Chapter 02: Critical Examination of HR Issues
2.0 External Analysis - SWOT 05
2.1 TOWS Matrix 05 - 08
Chapter 03: Potential Business Strategies and Implementation
3.0 Potential Business Strategies 09-10
3.1 Implementation of best Strategy 11 - 14
3.2 Business Model CANVAS 14-15
3.3 Conclusion 15
References 16

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ACKNOWLEDGEMENT

This note of acknowledge is to convey the author’s warmest appreciation to the Lecturer of
Strategy and Entrepreneurship, Suresh Mohamed for providing the author with the guidelines
and instructions with attention to help complete the assignment. For dedicating his valuable
time to share his fathom deep knowledge without which this would have not been possible.

The Author would also like to thank the staff at ANC, Colombo for the support given in getting
access to reading material and classroom facilities and finally, sincere thanks goes to the
Author’s family and friends who supported and encouraged her throughout the course.

The author is responsible for any errors that remain in this assignment.

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CHAPTER 01: INTRODUCTION

1.0 Introduction to the Company

Dialog Axiata Group is a subsidiary of Axiata Group Berhad (Axiata) and is Sri Lanka’s
leading quad-play connectivity provider, Dialog Axiata PLC, is listed on the Colombo Stock
Exchange, and derives its market leading stance in the Telecommunications Sector. Over
the years they have kept their footprints and a strong market presence in fixed
telecommunications and digital televisions. Dialog has been on the top in terms of being
the market leader due to their continuous attempt to improve themselves and use the
best and latest technology in their service packages. (Group Overview, 2020)

Dialog Axiata Group is also Sri Lanka’s largest Foreign Direct Investor (FDI) with
investments totaling over USD 2.5 Billion. Dialog Axiata stands for seven main values;
Service from the heart, Create the Future, Exceptional Performance, Uncompromising
Integrity, Responsible Leadership, Champions of change and One Team. In terms, of the
strategies

1.1 Objective of Study

The objective of this report to primarily undertake a TOWS analysis and determine the
current strategies of the organization, following the TOWS analysis, the researcher will
critically evaluate the Threats, Weaknesses and Opportunities of the company and look at
the best two strategies that can be pursued by the company in order ensure market
growth and share. Based on the two selected strategies, the best option will be
recommended for implementation and the selected strategy will be implemented using a
CANVAS model.

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CHAPTER 02: EXTERNAL ANALYSIS AND TOWS ANALYSIS

2.0 External Analysis – SWOT

Before moving on to the TOWS matrix, a SWOT analysis is deemed to be important to
understand the internal and external factors that can affect Dialog Axiata. An important factor
to keep in mind, would be that a strength for one issue in the organization, might be a
weakness for another whereas, identifying of a weakness, such as discovering a new market
to tap into will be an opportunity for the business.

2.1 TOWS Matrix

TOWS matrix is a variant of SWOT, and similarly involves the identification of Dialog’s
identification of the Strengths, Weaknesses, Opportunities and Threats. However, TOWS
Matrix goes on to the show the relationships between the factors. TOWS matrix tries to match
an internal factor to an external factor to make it identify strategic options, Dialog Axiata can

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pursue on. The four variants under the TOWS matrix is as follows; Opportunities against
Strengths is known as the Maxi – Maxi Strategy where the strategies can be used maximize
opportunities. Strategies that use current strengths to minimize Threats, is known as Maxi –
Mini Strategy. Strategies to minimize weaknesses by taking advantage of the opportunities
are known as Mini – Maxi Strategies and lastly strategies that minimize weaknesses to avoid
threats are known as Mini – Mini Strategies. (TOWS Analysis: A Step by Step Guide - Oxford
College of Marketing Blog, 2020)

Maxi – Maxi Strategy (Using of strengths to maximize opportunities)

As the undisputed market leader in telecommunications and being the people’s choice of
telecommunication year after year whilst winning Neilson People award, Dialog Axiata has a
comprehensive island wide coverage. The biggest threshold that Dialog has is that it can

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maximize their opportunities of winning bids and continue being the market leader. By doing
so, they can continue on using their innovation to bring to the public value-added services.

Dialog strives at understanding ‘wealth at the bottom of the pyramid’ and in this light they
are have put together the 4A Philosophy, to develop sustainable models to profitability enact
a comprehensive approach to the market. Through the strengths put in place by Dialog they
look at working tirelessly, to make their services accessible to all Sri Lankans, in rural areas,
the elderly and the low income groups along with the disabled to help them reap the benefits
and opportunities through connectivity. On a day to day basis, Dialog strives at their
strategies of 4A Philosophy, being Affordability, Availability, Applicability and Affinity. (4As
Philosophy, 2020)

Currently the Dialog call centre is done with a joint venture with First Source Solutions, this
has proven to cause issues in terms of service levels, hence it is suggested that the call centre
is insourced so that customers can be served better if under there purview.

Maxi – Mini Strategies (Using of threats to minimize threats)

As a country with a population of over 21 Million (Sri Lanka Population (2020) - Worldometer,
2020) and the telecommunication industry bearing five key competitors the competition
tends to get gruesome and rough. Due to this, the key players are always on the lookout to
positioning themselves better against the rivals. However, in 2018 the key competitors went
from Five to Four when Etisalat and Hutch merged and CKHH retained the majority and
controlling stakes of the entity. (The Hutch & Etisalat Merger and What It Means For Sri Lanka
| README, 2020)

With that being a new threat to Dialog, they looked back at the long pending Dialog and Airtel
Merger to make their grounds stronger back in 2018 however it did not go about successfully,
if they did it would have catapulted Airtel to being the fourth in the market to becoming a
part of the Number one mobile operator entity in Sri Lanka. Since there is a strong backing
from the parent company as well, the researcher suggests for it to be possible move. (Bharti
Airtel in talks to merge Sri Lanka unit with Dialog Axiata, 2020)

Another possible implementation being that Dialog does not hesitate when looking at options
to use futuristic or new innovations, hence they can collaborate Over the Top Content (OTT)

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service providers for a win – win alliance as most of the OTT services can be implemented if
the telecommunication networks provides a guaranteed quality of service and having an eye
for over the top innovation can create a demand amongst OTT players for a smooth service.

Mini – Maxi Strategy (Minimizing Weaknesses through Opportunities)

It is a known fact that this is the digital age and Millennials are in the dire need of technology,
with their lives revolving round it. The change of lifestyles and living more luxurious lifestyles
have become more common, frequent travel plans are also considered a day to day norm and
Dialog can use these opportunities to design new products based around these needs such as
New and Better Data Plans – Unlimited YouTube for Rs.249 a month and IDD and Data
products for Tourists such as ‘Tourist Plan’ where they can collect a free sim from the Airport
and is valid for 30 days. (Tourists Plan, 2020)

Back again to address the connectivity issues, can be addressed through a possible merger
with Airtel as their towers can be used as well when it comes to connectivity and consumers
can enjoy uninterrupted network in areas where there is high traffic. (Mobitel, Dialog
welcome Hutch-Etisalat merger - The Morning - Sri Lanka News, 2020)

Mini – Mini Strategies (Minimizing of Weaknesses to avoid threats)

As per Press Reader, the telecommunication market in Sri Lanka is currently saturated and
having high tariffs can determine the obtaining of new consumers as well as those who do
not have the dire need to stick to one number or plan. As per the tariffs from
Telecommunications Regulatory commission of Sri Lanka, Dialog although does offer best
prices, in few packages charge more than other operators, the threat of fierce competition
may affect the businesses even though in small scales in the long run. By looking at reducing
tariffs and offering more competitive prices will attract more clients and keep the fragile ones
in their client database longer.

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CHAPTER 03: POTENTIAL BUSINESS STRATEGIES AND IMPLEMENTATION

3.0 Potential Business Strategies

Potential Strategy - 01

As a key threat to the business along with the global pandemic crisis of COVID – 19, that has
intensified over the past months, Dialog Axiata has continuously worked hard to keep Sri
Lanka during these trying times and adapted a strategy to adapt to the situation and provide
more services more than the other competitors in the market, back again proving to be the
best in the market and

Dialog has been dedicated to assisting this situation to all its stakeholders, Consumers,
Enterprises, Business Partner and Government. With this pandemic, Online necessities has
become a need and Dialog has gone the extra mile to help Sri Lankan’s make their lives easier
through the social distancing efforts with the below special services for all their customers.
Despite the current situation, Dialog can continue with this already put together strategy to
keep their consumer at the core of their actions and get them through this difficult time
together. (Dialog’s e-Working, e-Learning and e-Health Solutions to empower Sri Lankans
during COVID-19, 2020)

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e-Health - Tele-Medicine and National Awareness via 1390

e-Learning – Free Content with No Data Charges on Guru.lk and

Government Education Platforms.

Extended Credit for All Customer

Unlimited Entertainment at Home and on the Mobile

Double Benefits - Data, Talk Time for Personal and Enterprise

Applications

e-Care - Digital Customer Support on MyDialog App and

WhatsApp Channels

e- Home Working Support for Enterprises

Potential Strategy – 02

As explained under TOWS, a proposed or a good strategy move in terms of long-term growth
as per the understanding of the researcher is to merge with Airtel. This will help eradicate
rival competition in the marker as a threat and cause an opportunity to eliminate a smaller
player. When the merger between Etisalat and Hutch took place in 2018 as a combined entity,
they had almost 30% of industry domination with over 2500 telecom towers around the
county providing a much larger coverage together. During the merge discussion the CEO of
Hutch had also added that they have a higher economy of scale, market share and technology
hence expecting to grow faster. (LTD, 2020)

As quoted by Supun Weerasinghe, Group CEO – the strategies of Dialog Axiata are well
written; with the data fast becoming the currency of advanced economies, they are on the
lookout of driving faster speed and coverage across the country. With this aspect in mind they
have accelerating investment in data to different target markets from rural villages to major
cities to digitally revolutionize their dependency towards data. He also went on to say that he
believes that data is the way to unlocking economic growth.

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3.1 Implementation of best strategy

When selecting the best strategy, we must understand the current strategic positioning of the
company and to understand the long-term planning of the company to consider the possible
growth opportunities.

Understanding the current strategic positioning of Dialog will help understand where the
company is and what best strategy will help the company achieve what they have set for
themselves. In order to comprehend this, we will be looking at how competitive advantage
can be gained by using the resources efficiently and can be done so by the use of Cliff
Bowman’s strategy clock that goes to show the different option Dialog can use when getting
an edge on competitive advantage. (Today and Ltd, 2020)

The first and second options being a low-price strategy does not go well in accordance to
Dialog as they charge either a higher price than competitors or in par but has not adapted a
low-price strategy. The Third option being Hybrid, is a combination of Low Price and
Differentiation and since Dialog does not look at a low-price strategy, Hybrid can be scratched
off which brings us to differentiation. Differentiation strategy looks at identifying your target
and serving them accordingly to their needs. Differentiation is about putting forth a reliable
product that retains customers and because of their high-quality product consumers will

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select these services and are even ready to pay more and this is more often the ocean that
Dialog swims in. The fifth strategy being the focused differentiation goes on to serve niche
markets where few competitors might fail to serve. (Mulder, 2020)

With the telecommunication industry, significantly growing over the past years and their goal
towards continuous innovation and improvement attracts potential customers and through
differentiation enables the company to poach clients currently using competition.

When Airtel was initially launched, they went into a huge customer base of 01 million in under
six months, although Dialog innovates services these are quick to follow new customer
acquisition and retaining can at times prove to be an issue and customer loyalty is key. This
can prove to be a challenge due to the switching behavior of clients in Urban areas like
Colombo, Galle and Kandy mainly due to being cost conscious, and the idea of other carriers
having lower costs are very much in publication, especially Airtel. (What is the best mobile-
phone service provider in Sri Lanka, 2020)

Differentiation takes a different approach and can cost more than cost leadership strategy
but chances of it generating higher profits are higher when it comes to Differentiation.
(Crittenden & Crittenden, 2008) This can be implemented better through a bigger reach and
taking over rural areas in the telecom industry.

Moving onto the BCG Matrix, this can be used to understand the long-term planning of the
company to consider the possible growth opportunities.

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STAR QUESTION MARK

Star is after having the highest market share This segment includes services that has a
and the highest growth and what lower level of market share but has a high
contributes to this, in other words the star potential in the future to grow. However,
service of Dialog Axiata, this would be the since the market share is smaller, it goes on
Dialog Broadband and Television segments. to contribute less to the company. This
Even though they are after charging means the industry has higher growth in size
relatively premium prices than Peo TV, and creates room for the company to grow.
Value added services will have to be The services falling under question mark are
incurred in retaining market share and Ezy Cash, Wow.lk and Papare.
keeping it as the star products, whilst DTV is
a star closer to question mark.

CASH COW DOG

Cash cow are the products that has the The segment is those products that has a
lowest level of growth, but the highest level low level of growth in the business along
of market share and the money generated with a low market share and might not have
off this can be generated back into a competitive advantage with the
development of other products. This would competitor. This would include the fixed
include Pre- paid and post - paid services wireless telco of Dialog Axiata.
since market penetration is slower.

3.2 Business Model CANVAS

Taking all above into consideration in terms of the current strategic position of the
company and where the company wants to head too, it deems to be best that the
consolidated strengths with Airtel would be the best foreseeable move to merge and
should be strategic move to be implemented in order to combat the threats and
weaknesses alongside strengthening the opportunities alongside the strong support
system from both the parent companies it would be a monarch move in the Sri Lankan
telco industry.

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3.3 Conclusion

Looking at the future challenges in terms of an organization, Dialog believes that is the cost
of communication that goes on to be the largest barrier in terms of rural communities and
this takes up a larger proportion of sri Lankan population. Although the rural folks are slowly
but surely moving onto the use of mobile phones and taking calls, there is still a vast gap in
terms of connectivity through the internet that helps them enhance their day to day life.
Dialog has been on the lookout of understanding that the retailer network is an influential
figure and downstream supply chain is the way to go in terms of creating awareness of being
connected, and passing on the message of using Technology – for this Dialog is continuously
working on spreading the message with time and coming together with Airtel will only them
achieve their objectives faster but also stronger. (4As Philosophy, 2020)

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REFERENCES
• Boston Consulting Group (BCG). (1973). The Experience Curve-Reviewed. Retrieved August 17,
2015, from www.bcg.com/documents/file13904.pdf.
• Crittenden, V. L., & Crittenden, W. F. (2008). Building a capable organization: The eight levers of
strategy implementation. Business Horizons, 51, 301-309.
• Lanka Business Online. 2020. Bharti Airtel In Talks To Merge Sri Lanka Unit With Dialog Axiata.
[online] Available at: <https://www.lankabusinessonline.com/bharti-airtel-in-talks-to-merge-sri-
lanka-unit-with-dialog-axiata/> [Accessed 3 May 2020].
• LTD, L., 2020. The Island - Home. [online] Island.lk. Available at:
<http://www.island.lk/index.php?page_cat=article-details&page=article
details&code_title=204578> [Accessed 4 May 2020].
• Mulder, P., 2020. What Is The Bowman Strategy Clock And How To Set It Up? | Toolshero. [online]
toolshero. Available at: <https://www.toolshero.com/strategy/bowman-strategy-clock/>
[Accessed 4 May 2020].
• Oxford College of Marketing Blog. 2020. TOWS Analysis: A Step By Step Guide - Oxford College Of
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<https://blog.oxfordcollegeofmarketing.com/2016/06/07/tows-analysis-guide/> [Accessed 1 May
2020].
• README. 2020. The Hutch & Etisalat Merger And What It Means For Sri Lanka | README. [online]
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service-in-sri-lanka/> [Accessed 5 May 2020].
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hutch-etisalat-merger/> [Accessed 4 May 2020].
• Today, B. and Ltd, B., 2020. BUSINESS TODAY -Dialog Delivering The Future Today. [online]
Businesstoday.lk. Available at: <https://businesstoday.lk/article.php?article=11865> [Accessed 5
May 2020].
• Worldometers.info. 2020. Sri Lanka Population (2020) - Worldometer. [online] Available at:
<https://www.worldometers.info/world-population/sri-lanka-population/> [Accessed 2 May
2020].
• www.dialog.lk. 2020. 4As Philosophy. [online] Available at: <https://www.dialog.lk/4as-
philosophy> [Accessed 3 May 2020].
• www.dialog.lk. 2020. Dialog’S E-Working, E-Learning And E-Health Solutions To Empower Sri
Lankans During COVID-19. [online] Available at: <https://www.dialog.lk/dialogs-e-working-e-
learning-and-e-health-solutions-to-empower-sri-lankans-during-covid> [Accessed 4 May 2020].
• www.dialog.lk. 2020. Group Overview. [online] Available at: <https://www.dialog.lk/group-
overview> [Accessed 28 April 2020].
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[Accessed 4 May 2020].

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