3. MHRM – Batch No.07
Strategic Management – Group E
4. Group Members
1. Organizational Background cum Vision & Mission
Mr. S.M. Rizmi – MHRM/07/25
2. Internal Assessment of the Organization
Ms. H.J. Wimalasundara – MHRM/07/61
3. External Assessment of the Organization
Ms. A.K.S. Gunawardhane – MHRM/07/42
4. Strategy Analysis & Choice
Mr. A.D.D Anuranjana – MHRM/07/01
5. History of Dialog Axiata
• Dialog was incorporated in 1993
• 1995 began its commercial operations under the brand name of Dialog
GSM
• 1997 Dr. Hans Wijayasuriya was appointed as the CEO of MTN Networks
• 2005 MTN Networks (Pvt) Ltd unveiled its new corporate identity as
Dialog Telekom
• 2005 Dialog Telekom acquired 100% stake of MTN Networks (Pvt) Ltd
• 2009 was the first mobile operator to extend its GSM network
• 2013 Dialog Axiata launched its mobile 4G LTE services
6. Introduction
• Dialog Axiata is one of the largest telecommunication
service providers in Sri Lanka.
• It is a subsidiary of Axiata Group in Kuala Lumpur
Malaysia.
• Formerly known as Dialog Telekom or MTN Networks.
• Has a workforce of over 4000.
7. • In 2014, the subscriber base was over 9 million. And now it has
reached 11 million (2016).
• It’s mobile network coverage is approximately 84% of the
country's land mass and 97% of Sri Lanka's population
8. Main Products and Services offered..
Dialog Mobile Services
Dialog Broadband Internet
Dialog Television
Dialog Fixed Line
Dialog Global
Dialog won the SLIM Nielsen Peoples Award as the Telecom Service
Provider and the Internet Service provider of the year for 4 consecutive
years.
9. Vision & Mission Statement
“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”
Vision
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.”
11. Theoretical Aspects of Mission
Statement
• Unanimity of Purpose
• Resource Allocation
• Organizational Climate
• Focal Point of Work Structure
• Customer
• Products or Services
• Markets
• Technology
• Survival/Growth/Profitability
• Philosophy
• Self Concept
• Public Image
• Employees
12. Mission Statement Evaluation
Customers customer driven
Product & Services provision of technology enabled connectivity
touching multiple human sensors
Market
Technology Technology
Survival / Growth / Profitability leading edge technology unparalleled by any
other
Philosophy responsive and flexible business processes,
and through the delivery of quality service
Self Concept leading edge technology unparalleled by any
other
Public Image
Employees empowered set of dedicated individuals
13. Proposed Mission Statement
• “To lead in the provision of technology in South Asia, enabled
connectivity touching multiple human sensors and faculties,
through committed adherence to customer driven, responsive
and increase financial profitability, 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.”
• We believe in giving back to the society we operate in, while
being sustainable in our business practices.
14. Core Values
• Service from the Heart
• Create the Future
• Champions of Change
• Exceptional Performance
• Uncompromising Integrity
• Responsible Leadership
• One Team
16. Internal Audit
• Management
• Marketing
• Finance & Accounting
• Production & Operations
• Reearch & Development
• MIS
17. 7 S
• Strategy
• Structure
• Systems
• Styles
• Staff
• Super Ordinate Goals
• Skills
18. Internal Factor Evaluation Matrix
Key Internal Factors Weight Rating Score
Strengths
Greater competitive advantage In srilanka as the first moves of
GSM.
0.17 3 0.51
Giant telecommunication relation With telecom Malaysia
group.
0.02 3 0.06
Strong public relations that has been Built up over the year.
0.1 4 0.4
Strong island wide distribution network
0.06 3 0.18
Skilled & dedicated management team And team employees
with high capabilities 0.1 4 0.4
Great customer satisfaction and high Quality customer support 0.01 3 0.03
Extended breath of product range 0.04 3 0.12
19. Cont…….
Key Internal Factors Weight Rating Score
Weaknesses
No clear focus on broader market 0.03 1 0.03
Poor performance as an ISP 0.01 2 0.02
Lack of pricing innovations. 0.03 1 0.03
No Non – expandability of current Location. 0.12 1 0.12
Decreasing level of motivation Of internal
employees. 0.12 2 0.24
Decreasing quality of product & Services. 0.01 2 0.02
High employee turnover 0.18 2 0.36
22. Cont…
1. Political, Government & Legal Forces
• To boost the urban development and technological knowledge of the community,
Sri Lankan government started launching free Wi-Fi zones
• Relaxed FDI (Foreign Direct Investment) standards.
• Introduced a common floor rate for the telecom industry - Charge for short
Messages (SMS) decreased within network, the local voice call per minute
billing basis remained while per second billing basis the rate increased from per
minute. Outside networks, the local voice call per minute billing basis decreased
per minute while the per second billing basis rate reduced.
• The government changed the VAT and NBT exemptions for telecommunication
companies.
23. Cont…
1. Political, Government & Legal Forces
• Telecommunication service providers are subject to an annual fee
for per telecommunication tower.
• Sri Lanka's telecommunication sector operates under highly
regulated environment. Telecommunications Regulatory
Commission of Sri Lanka (TRCSL) acts as the national regulatory
agency for telecommunication with in the country.
• Sri Lanka Telecommunications (Amendment) Act, No. 27 of 1996
is the regulated act for Sri Lanka's telecommunication sector.
25. Cont…
3. Social, Cultural, Demographic & Natural
Environment Forces
• High end phones have become a status symbol in society
and have become an essential item for day to day lives.
• Increasing need for communication and the decline in use
of postal services.
• Inclination towards internet information.
26. Cont….
3. Social, Cultural, Demographic & Natural
Environment Forces
• Busy life styles drives demand for mobile value added services.
• The government charges an annual fee for per telecommunication
tower considering the negative environmental impact.
• Improvement in “Green Planet‟ project in line with global
standards.
• Use of environmentally savvy cell phones.
27. Cont…
4. Technological Forces
• Value added services such as mobile banking, mobile
appointments, mobile ticket booking etc. are becoming more
popular among people.
• Accelerated improvement in new mobile applications as smart
phone usage has increased
• High speed internet 4G and 4G-LTE.
• Smart phones have brought a world of possibilities near to the
fingertips.
• Improvement in mobile software drives data usage.
29. COMPETITIVE ANALYSIS
PORTER'S FIVE FORCES MODEL OF COMPETITIVE
ANALYSIS
According to Porter, the nature of competitiveness in a
given industry can be viewed as a composite of five forces;
• Rivalry among competing firms
• Potential entry of new competitors
• Potential development of substitute products
• Bargaining power of suppliers
• Bargaining power of consumers
30. External Factor Evaluation Matrix (EFEM)
Opportunities Weight Rating W Score
Technology advancements especially in the realms of
mobile multimedia technologies and the advent of the next
generation of mobile communications
0.08 2 .16
Low fixed line penetration
0.06 4 .24
Growing demand in broadband and data segments. 0.06 3 .18
Growing demand for IDD and roaming facilities
0.06 3 .18
Accelerated growth of telecommunication industry in
Sri Lanka
0.07 2 .14
Smartphone penetration is increasing rapidly. 0.04 3 .12
Business diversification
0.05 4 .20
Growth in the domestic economy 0.07 3 .21
31. Cntd..
Threats
Volatile changes in the political, social and economical conditions and the
laws and regulations and their interpretation (Eg: TRC regulations)
0.08 1 0.08
Strongest Competitor, the mobile wing of fixed line telecom gainst SLT is
focused on cost-leadership competitive advantage strategy through its low
cost pre-paid product to mass market.
0.05 2 0.1
Innovation and new products by other competitors ; other operators
developing new services - Mobitel launched M-cash which may
competitively effect on Dialog Easy Cash Service
0.12 1 0.12
Sri Lanka telecom's new internet packages with more GBs at less price
than dialog with a reasonable speed
0.06 2 0.06
Managing customer requirements 0.04 3 0.12
Applications such as Viber, Skype, Whatsapp, and We Chat etc. may
damage the voice and video call customer base
0.08 1 0.08
Changes in government fees and levy's 0.08 1 0.08
Total 1.00 2.13
34. The Internal –External Matrix
• The Total IFE Weighted 2.52
• The Total EFE Weighted 2.13
35. The Internal –External Matrix
I II III
IV V VI
VII VIII IX
Strong
3.0 – 4.0
Average
2.0 – 2.99
Weak
1.0 – 1.99
High
3.0 – 4.0
Medium
2.0– 2.99
Low
1.0– 1.99
The Total IFE Weighted 2.52
The Total
EFE
Weighted
2.13
Hold & Maintain Strategy
1. Market Penetration
2. Product Development
36. Recommended Strategies:
• Pursue 4G Technology
– Transition from CDMA GSM
• Increase Investment in R&D
– Long Term Evolution
– Fiber Optic Service
39. Final Recommended Strategy
Pursue 4G technology (Long Term Evolution)
with the transition from CDMA GSM
“Any apps, Any device”
Free and wide open network
40. Final Recommended Strategy
•Product / Package development for the existing market -
Improving the current “Pull” marketing strategy for the advertising
& Promotion.
•Improve R & D Capabilities – By strategic alliances with their major
technology vendors.
•More Efficient & Effective Operations flow with all business units.
41. Final Recommended Strategy
• Improve on its current team based working environment
to self-managing work teams.
• Information Systems should be aligned with corporate
and business level objectives
