STRATEGIC ANALYSIS FOR DIALOG AXIATA PLC.

Opportunities Threats
GROUP 22 1. Rapid growth in
telecommunication sector.
1. Higher competition from (SLT-
Mobitel, Airtel, Hutch)
2. Increase usage of smartphones,
2. Higher inflationary level.
computers and other devices
3. Fluctuations of law &
due to Covid19.
legislations.
3. Ability to exploit market
4. SLT Fibre technology.
diversification.
Inbound logistics Threat of new entrants – Low 5. Airtel data roaming packages.
Entering and establishing in the telecommunication industry is extremely
• Dialog manages to engage with their suppliers on every site assessment to measure Strengths SO Option ST Option
challenging for a start-up due to,
the quality of the materials by conducting surveys. 1. A well-established public
• Complex procedure for obtaining licence from TRC for the initiation of
• Dialog maintains a procurement-based collaboration on a daily basis with the relationship since 1995.
the operations.
providers to ensure that they provide their best service. 2. Reputed brand image. • Conduct R&D (S2) in order to
• Requirement of higher capital investment and higher cost on • Invest in business development
3. Secure network coverage speed identify a USP over competitors
Operations infrastructure to initiate the operations. & planning department to
all around the island. (T1) through creating a system
• Necessity of comprehensive technical knowledge about all the aspects of strengthen the “5G technology”
• Initiates continuous active engagement across all operations, surveying each and 4. Dialog 4G, 5G – Technical that track the real time
• Dialog Axiata PLC is an affiliated company of Axiata Group Berhad which has been at telecommunication industry. (S4) and improve “My Dialog”
every step inclusive of the regulators on an annual basis in order to build innovations. transactions (S5,T5) or by
the forefront of innovation in the portable media communications business in Sri Lanka • Extreme control on the suppliers and the resources such as skilled app (S3,S6) to gear up customer
effectiveness and manage waste. 5. Global services with GSR postpaid programs (S3) that
. It has diversified its business over telecommunication, television and financial sectors. workforce, infrastructure and specialized technology by the existing convenience (O2) which will
• The company concentrates on creating effectiveness on corporate stewardship by roaming. target young professionals
industry dominants such as Dialog Axiata, Mobitel & Airtel which increase market share (O1,O3)
taking compliance cost and community investments into reflection (PLC, 2019). 6. Consist of a larger customer (T2,T3)
makes it difficult for a start-up to ensure long-term survival.
• The wide product portfolio of dialog includes fixed and wireless telephone, broadband, base.
satellite assistance and mobile TV extended with e-learning and easy cash. It was also Outbound logistics
the first telecommunication company to demonstrate the first 5G pilot project in South • Customer convenience is ensured by monitoring and locating outlets across the Bargaining Power of the Buyers - High
Weakness WO Option WT Option
Asia (Alles and Yazdanifard, 2017). country; while conducting surveys annually to develop customer services by Due to the similarity in the services offered by Dialog and the other
telecommunication service providers, the highly price sensitive customers 1. Charging higher prices for IDD
ensuring data privacy.
tend to switch to a relatively less costly service. calls in comparison to other
• Dialog holds the differentiation of being the first solitary organization in Sri Lanka to • Dialog has implemented, enhanced retailer and distributor engagement to assure rivals.
accomplish a market capitalization of USD 2.5 billion. By being the leading competitor that the distribution system is up to date. Example: • Continue innovations like
in the telecommunication industry since the late 90’s in the country, dialog represents 2. Offering less competitive data • Remove the expiration date
• Dialog’s latest service of delivering self-activation SIM cards, voice recharge cards • SLT- Mobitel offers High-speed Broadband, Fixed line services and 4G “VoLTE” network facilities (W4)
around 57% of portable endorsers in Sri Lanka and for 45% of the broadcast packages for the corporate (W3) on prepaid reloads (O2). In
and data recharge cards via UBER delivery service and ability to order dialog Network coverage which are relatively similar in quality to the services to compete with rivals (T4, T5)
communications area in general (Dialog Axiata PLC, 2021). sector. addition generate a corporate
television connections online illustrates value creation under outbound logistics offered by Dialog (Dialog Axiata PLC, 2020). while maintaining a stable price
3. Lower credit margins & higher lock-in program (W2) to increase
(PLC, 2019). • Lower call rates offered by Airtel. level for IDD calls (W1) by
prices for data roaming the network loyalty (O1) and
The tendency to switch can be worsened since the switching cost to another passing the cost advantage to
Marketing and sales packages.. reduce extra service chargers
telecommunication service is quite minimal. customers despite the rise of
4. “CDMA” technology introduced (W1,O3)
• Dialog’s marketing strategy has an aligned approach to sustainability development by Dialog was not a major strike
inflation (T2)
and creating value by differentiating the services with the competitors. Competitive Rivalry - High to the market.
• The company follows a market demand oriented approach when introducing Higher competition due to the presence of multiple competing
products and services (Example: their latest work and learn packages during the telecommunication service providers such as SLT- Mobitel, Airtel & Hutch
pandemic) that have acquired higher customer loyalty to their brands.
• Their advertisement campaigns are aligned with the company’s CSR. Ex: Data SLT- Mobitel is defined as the strongest competitor due to some rigorous
scholarships for kids in rural areas of the country. policies pursued by them such as,
After sales services • Predatory pricing techniques which have caused continuous reductions
in the price levels set by Dialog
• Offering personalized package recommendations depending on the usage, and • Adopting a highly reactive strategy by imitating the initiatives taken by
instructions for SIM installations on the package itself and online. Dialog which causes similarities between the services.
• Providing 24/7 uninterrupted customer services, allocating technical assistance OPTION 1 OPTION 2 OPTION 3
centres around the nation and enabling WhatsApp customer care portal for their Conduct R&D (S2) in order to
Bargaining Power of Suppliers – Low Continue innovations like “VoLTE”
issues (PLC 2019). Invest in business development & identify a USP over
• Dialog has an effective supply chain with a large number of international network facilities (W4) to compete
planning department to strengthen the competitors (T1) through
Infrastructure and local suppliers of network and mobile equipment, therefore the with rivals (T4, T5) while
“5G technology” (S4) and improve “My creating a system that track
supplier influence over the firm is limited. maintaining a stable price level for
• The company has built diverse departments throughout the country and Dialog” app (S3,S6) to gear up customer the real time transactions
Political • Furthermore the large-scale purchases made by the firm has made the IDD calls (W1) by passing the cost
constructed distribution centres which support their supply chain and retail convenience (O2) which will increase (S5,T5) or by post-paid
• Sri Lanka's current favorable FDI policies, flexible political environment and activities.
suppliers dependant while limiting their capability to bargain. advantage to customers despite
market share (O1,O3) programs (S3) that target
the rise of inflation (T2)
international competition has encouraged the growth opportunities in the • Dialog’s development of ‘Tier III’ data centres located in Piliyandala and Malabe young professionals (T2,T3)
telecommunication industry. (positive) has accelerated the country’s digital transformation to reach customer demands. Threat of Substitutes – Low Increasing competition in the
• Promising government policies has contributed to Dialog for its • Fixed lines and CDMA connections can be mentioned as the substitutes. As the world is increasingly converting telecommunication sector It is suitable because the company
HRM Suitability
transformation of a private limited company into a public limited company. • But as the market share of these substitutes is relatively small compared into 5G network models this option is a suggests that market specific has been a step ahead with
(positive) • Improving minimum wages, developing employee education and collaboration of to Dialog and the obsolescence of those services as they are restrained good opportunity for Dialog to increase R&D will help the company in innovations and this could
Economical skills depict that the company has the best interests of employees in mind. from adapting new technologies has made their influence on such an network speeds in order to attract more increasing sales, while potentially help the company
• Currency depreciation has made imports expensive also the restrictions for • Conducts employee engagement surveys, in order to build transparency in innovative firm like Dialog insignificant. customers and engagement on the self- targeting young professionals maintain price stability compared
imported digital equipment has a negative impact on Dialog’s supply chain. recruitment process, comfortable and uplifting workplace and offer accurate care app. will help the company increase to competitors.
(negative) learning opportunities which improve their careers. sales in that specific segment.
• Having undergone massive reforms, Sri Lanka still falls behind India in terms Score: 7/10 5/10 7/10
of attracting FDI. Technology development References R&D is costly and time
Socio-cultural consuming therefore accurate
Acceptability There is a certain level of risk associated Not all stakeholders will be
• Sri lanka has a strong HDI and a well-trained and educated labor force. • Development of IoT Smart Meter; a smart energy monitoring system, which • Dialog Axiata PLC, 2020. Annual Report 2020 Dialog Axiata PLC. information might take a long
monitors the usage of branches and energy consumption as Sri Lanka’s network coverage is not comfortable to convert to VoLTE
(positive) [Online] time to derive and sort out
the same throughout the country. Even network considering the costs and
• The Sri Lankan bureaucratic culture followed by the colonial administration • Development of VDO Meet where the customer connects to a service person Available at: and will not be as effective
though this will yield good returns to R&D involved. The increasing level
has led to inefficiencies, favoritism and inequalities. (negative) through a video call and virtually get assistance https://cdn.cse.lk/cmt/upload_report_file/389_1622604449850.pdf post Covid as young
investors not all consumers would have of inflation will cost the company
Technological • Constructing smart ATM, where this system provides complete visibility and [Accessed 06 December 2020] professionals would return to
• Isc.hbs.edu. 2021. The Value Chain - Institute For Strategy And the affordability or the accessibility to if prices are lowered in IDD
insights to your networks (Dialog Innovation Foundry, 2021). physical workplaces and not
• The country lacks in timely technological alterations- for example, there is a Competitiveness - Harvard Business School. [online] Available at: this technology. services.
have the use for network
delaying transition from analogue to digital and the use of CDMA technology. Procurement <https://www.isc.hbs.edu/strategy/business-strategy/Pages/the-value-
(negative) packages the same way.
chain.aspx> [Accessed 1 December 2021].
• Technological innovations of the telecommunication industry has led to a • Dialog focuses on advanced technology and procurement related activities to Score:
• If.dialog.lk. 2021. Dialog Innovation Foundry. [online] Available at: 5/10 7/10 7/10
reduction in production life span therefore increasing efficiency and gain cost minimize cost and maximize efficiency.
<https://if.dialog.lk/> [Accessed 1 December 2021].
advantage. (positive) • ‘Dialog supplier code of conduct’ has been initiated to encourage the highest • PLC, D. axiata (2019) Sustainability report 2019, Global reporting The large customer base and
Ecological and legal ethical standards which add value to the organization. initiative (GRI). Available at: Not all consumers in the timely innovations can potentially
Flexibility
• TRCSL assures that government policies are implemented effectively while https://www.dialog.lk/dialogdocroot/content/pdf/sustainability_reports/su Strong financial position will enable the target segment would show make up for the profit affected by
consumer complaints, changes in industry requirements are properly stainability-report-2019.pdf. company to further develop said interest in postpaid packages. changing the price on IDD calls.
monitored. (positive) • Zamora, E. A. (2016) ‘Value Chain Analysis: A Brief Review’, Asian strategies. Competitors may try to Employees would also have a Competitors may also adjust prices
Journal of Innovation and Policy, 5(2), pp. 116–128. doi: advance in 5G technology as well. hard time adjusting to new accordingly. Price instability and
• Public objection on infrastructural improvements such as constructing cell IMPORTANT NEUTRAL 10.7545/ajip.2016.5.2.116. system changes. inflation in the country may bring
towers in urban areas has been a major issue. (negative) • Alles, S. T. and Yazdanifard, R. (2017) ‘Strategic Management Failures of
• Since weather affects the country’s telecommunication the monsoon has a adverse effects.
“Dialog Axiata” and Recommended Strategic Approaches for
major influence on signal strength. (negative) Score:
Implementation’, International Journal of Management, Accounting and 6/10 4/10 6/10
• For SMS and voice call charges, a price floor was imposed by TRCSL in order Economics, 4(10), pp. 1049–1062. Available at:
to make the telecommunication industry stable. (neutral) www.ijmae.comwww.ijmae.com. Overall score 18/30 16/30 20/30
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