Executive Summery

This is a report to the management of Dialog axiata PLC Company; regarding the strategic
management process & practices of the Company. Firstly briefly explained the strategic process
of Dialog axiata PLC including Vision, Mission, Goals & core valves. The Second part by
identifying the stakeholders & explained their influences on strategic planning of Dialog axiata
PLC using a suitable ways stockholders analysis. Also in the third part of this report conducted an
internal & external environmental analysis of Dialog axiata PLC. And identify & explain strategic
capabilities & bases on competitive advantage, resources & competences, distinctive capabilities
& the valve chain analysis for the internal analysis & PESTEL analysis & Porter’s 5 forces for
the external analysis. Finally constructed a SWOT analysis for the Dialog axiata PLC.
 Introduction

This report discusses about the Strategic process, Vision, Mission, SWOT analysis, PESTEL
analysis & Porter’s 5 forces in Dialog axiata PLC. The Dialog Axiata PLC has been at the forefront
in the innovation in the mobile industry in Sri Lanka since the late 1990s, propelling the nation’s
mobile telephony infrastructure to a level of advancement on par with the developed world.

The Dialog axiata PLC, a subsidiary of Axiata Group Berhad (Axiata) operates Sri Lanka’s largest
& fastest growing mobile telecommunications network. The company is also one of the largest
listed companies on the Colombo stock Exchange in terms of market capitalization. Dialog is also
Sri Lanka’s largest Foreign Direct Investment totaling over USG 1.9 billion.
 Question 01

 Dialog Axiata PLC’ s Vision

“To be the undisputed leader in the provision of multi-sensory connectivity

resulting always, in the empowerment & enrichment of Sri Lankan lives &
enterprises.”

 Dialog Axiata PLC’s Mission

“TO lead in the provision of technology enable connectivity touching multiple

human sensors & faculties, through committed adherence to customer-driven,
responsive & flexible business processes, & through the delivery of quality
service & 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.”
 Organization Goals

 The deliverance of industry best return on investment to the shareholders of the company.
& financial market recognition as the highest valued mobile communication operator in Sri
Lanka.
 The deliverance of the best product in the market place through leadership in customer
service, product quality, provision & adaptation to emerging technologies & convergence
with the internet.
 Achievement of leadership in terms of (economically) effective subscriber base, brand
recognition, consumer first choice & ownership of heart & mind share of Sri Lankan
consumers.
 The achievement of leadership in term of management practices, internal strengths,
competitive resilience & quality of empowered resources, through adaptation of best
practices & the active pursuit in new business in which corporate strengths could be
exploited in the interest of growing the valve of the company.
 All individuals with different background, different ethnics & nations are teamed up &
driven towards a common set of goals & objectives at Dialog Telecom. The company has
been successful in focusing the entire team towards a single vision by incorporating all
individual’s goals & personal objective together.
 Organizational Culture
 Dialog telecom Organization culture can be summarized as a performance-driven culture,
where good work result in more work & more rewards & benefits.

 Organizational Structure
 The operations of the company are managed through a faculty of Strategic Management
Committees (SMC), focused on the delivering of corporate targets within the core
functional areas of Service delivering, Technology, Business &Finance, Information
System, and Sales Marketing & Support Services.

 Dialog Axiata PLC’s Objectives

 A key objectives of supply chain Management at Dialog Axiata Group is to enlist, develop
& sustain suppliers who consistently provide assistance to the company’s business
objectives by offering products & services in compliance with the expected level of quality,
reliability, price, service levels & ethical standards.

Valve & Profit Leadership

Quality Leadership

Objectives
Market Leadership

Corporative Leadership

Figure O1- Objectives of Dialog Axiata PLC

 Core Valve of Dialog Axiata PLC

 Total commitment to our customers

 Dynamic & human centered leadership
 Commitment to task & team work
 Uncompormising integrity
 Professionalism & accountability
 Foremost concern for respect & care
 Service from the heart
 Create the future
 Champions of change
 Exceptional Performance
 Uncompromising Integrity
 Responsible Leadership
 One team
 Question 02

 Need & expectation of the Stakeholders

 Dialog

 In Sri Lanka, Dialog’s sustainability strategy has a short term as well as a long term
dimension in order to address the varied expectation of its stakeholders. Dialog
acknowledges that the sustainability approach applied in his manner enable the
management of its holistic business footprint providing for social, economic, &
environmental balance.

 Strengthening Stakeholders – Dialog Retailer Network – The Dialog retailer training

programme ‘Viyapara Diriya’ continued in 2011, training more than 5,100 small
entrepreneurs in the last four years. The programme has in turn diversified Dialog’s retailer
base. Reduced turnover and strengthened Dialog’s image in the community. Dialog
collaborates in the project with the International Finance Corporation (IFC) & the GSMA.

 Dialog undertook a dipstick Sustainability stakeholder engagement survey in the year

under review for two purposes to guide the Company’s Sustainability agenda for the 2016
period and to identify the key topics to be reported upon here, as per GRI guidelines.
Seven of Dialog’s key stakeholder groups were thus engaged by an independent party to
obtain feedback on the current economic, social and environmental aspects that matter
most to them. These groups included customers, suppliers, retailers, distributors,
employees, civil society and the general public. The context for this survey was derived
in two ways: by the Global Reporting Initiative’s (GRI) G4 framework that Dialog
follows in reporting its Sustainability performance annually and a benchmarking review
of issues affecting the Telecommunications industry globally.
A shortlist of 24 issues was thus identified and an independent research agency was
commissioned to frame and conduct the survey. The agency carried out the study via a
telephone-based questionnaire for majority of the respondents, while some of the
engagements were face-to-face interviews.
 Time of Engagement & Frequency General Concerns
 Customer  Net promoter Score Survey across all  Quality products & services
Groups of customers – Annually.  Affordable pricing
 Independent Stakeholder  Complaint management
Engagement Survey – Annually.  Quality of Customer Service
 Security of personal Information
 General Public  Independent Stakeholders  Provision of high quality products
Engagement Survey – Annually.  Contribution to society
 Use of eco – friendly products
 Date Security
 Quality of Customer Service
 Civil Society  Independent Stakeholders  Quality of Customer Service
Organizations Engagement Survey – Annually.  Eco – friendly product development
 Regulatory Compliance
 Customer Fraud Prevention.
 Diversity & Inclusion.
 Shareholders  Annual General Meeting of  Dividends
Shareholders  Special Benefits for stakeholders
 Investor Forum-Annually
 Earnings call with local & foreign
analysts – Quarterly
 Regular one-on-one engagements –
twenty-three one-on-one meetings
 Overseas road shows – calls
 Local stock Broker Forums – Two
local forums held
 Regulators  Continuous active engagement across  Investment in community initiatives
multiple divisions  Eco-friendly product development
 Independent sustainability  Environmental Steward ship
stakeholders Engagement Survey –  Waste management
Annually  Regulatory Compliance
 Employees  Employee Engagement Survey  Recruitment policy being based on
Conducted by the Axiata Group Competencies
 Independent Stakeholders  Comfortable work environment
Engagement Survey - Annually  Maintain transparency with employee
 Remuneration
 Career Development
 Retailer  Regular one - on - one engagements  Quality of Service
 Dialog 5 – Star Partner Initiative  Customer Data Security
 Independent Stakeholders  Affordable pricing
Engagement Survey – Annually  Innovation Products & Service
 Accessibility
 Suppliers  Suppliers Site Assessments &  Fair procurement
Regular On – going engagement  Eco – friendly product design
 Independent Stakeholders  Timely payments
Engagement Survey – Annually  Social – economic Compliances
 Regular business – as usual  Adoption of new technologies
interactions
 Media  Regular one – on – one Engagements  Product Health & Safety
 Independent stakeholders  Regulatory Compliance
Engagement Survey  Affordability of Product &Services

Table 01 Stakeholders Engagement

Figure 02
Figure 03-Stakeholders of Dialog
Figure 03-Stakeholders of Dialog
Figure 04-Valve Chain Analysis of Dialog
 Question 03

 The External environment of the Dialog

External Environment refers what the firm ‘MIGHT CHOOSE TO DO’. Generally, a firm
external environment is divided into three areas.

• General Environment
• Industry Environment
• Competitor Environment. (Anon., 2017)

 PESTLE analysis

The PESTLE analysis has been undertaken for understand of the external environment in the
context of Telecom sector (Dialog) which the industry operates in. Generally, external factors are
out of the industry’s control and the industry need is to be aware of them to adapt itself for
exploit opportunities and to avoid the threats in the environment.

P – Government is responsible for protecting the political stability, public interest, consumer
protection and regulations of business activities.

E – Competition for resources, competitor activities, savings, unemployment

S – Work life balance, lifestyle, trends in consumer behaviors and leisure

T- Technology develops new products, improved communication and internet

L – Government rules and regulations, Laws, Tax system, Traffics

E – Environmental Safeguard, Green Products (Green Banking)

(J.Post, 2017)
 Factors Effects

Political Factors Sri Lanka has very positive foreign investment policies. However through
Sri Lanka identified importance of liberalization early as in 1977, due to
political intervention bureaucratic attitudes inherited from colonial regain
& poor governance, the country as a whole & 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.

Economic Factors Unstable macro-economic environment & trade policy 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 dynamic incorporated by India to attract foreign direct investment.
The attitude towards foreign investments needs to be improved.

Socio Cultural Sri Lanka has better social conditions for example Literacy rate is high,
Factors infant mortality rate is low & life expectancy is long. The country also has
an educated & trainable work force.
Nevertheless Sri Lankans inherit a bureaucratic attitude from the colonial
administration that results in inefficiencies & discrimination.
Technological Sri Lanka depends on technology transfers from foreign direct
Factors investments. However TRCSL encourages local research & development.
The country comparatively has not performed well enough to adapt
technological changes on a timely manner. For example the shift from
analogue to digital & the adoption of CDMA technology materialized in a
slow pace.

Legal Factors TRCSL the regulatory body takes up multidimensional roles. It ensures
fair enforcement of Govt. policy, hold operators accountable for
performance, address consumer issues, monitor changing industry needs
& provide feedback to the policy making unite.

Table 02-PESTEL Analysis of Dialog

 Porter’s Five Forces Analysis

 Porter’s Five Forces Analysis is an analysis tool that uses five industry forces to
determine the intensity of competition in an industry & its profitability level.

Threat of new
Entrance

Competitive Bargaining Power

Bargaining Power Rivalry
of Customer of Suppliers
within an
Industry

Threat of substitutes
Product

Figure 05- Porter’s Five Forces of Dialog

1. Threat of New Entrance
 India’s Bharti AIRTEL has got the fifth mobile operator license in Sri Lanka.
 As per TRCSL, no more license would be awarded.
 Thus it creates an entry barrier for all others to the Market.

2. Bargaining Power of Customer

 Consumer protection groups are almost non-existing.
 As compared to the west, consumers are not that strong in their demands.
 Quality standards & supports are comparatively not major concern if they exist at a basic
level.
 Low switching cost.
 Customers are highly cost conscious.

3. Threat from Substitutes

 Almost negligible.
 Alternatives are fixed line & the more recent CSMA connectivity.
 This is a much smaller market as compared to the huge total market.

4. Bargaining power of Suppliers

 Local & International suppliers for Dialog.
 Depends on SLT, MTT & a few other VSAT operators to access the national backbone.
 Thus these particular suppliers are extremely powerful.
 Acquisitions of MTT & the creation of the new subsidiary known as Dialog Broadband
Network.

5. Rivalry Among Competing Firms

 Very high competition with constant pricing wars.
 Dialog certainly has an edge because of their Value Added Services & differentiation
strategy & the huge customer base.
 Valve Added Service are becoming very popular among the customer
 Question 04

 SWOT Analysis of Dialog Axiata PLC

 SWOT analysis has been used evaluate the Dialog Axiata PLC strategic situation in the
competitive telecommunication industry. This will identify the Strengths, Weaknesses,
Opportunities, & Threats of Dialog Axiata PLC. Strengths & Weaknesses are effected by
the internal factors of the company. Opportunities & Threats are affected by the external
factors of the company.

 Analyzing the strengths of the Dialog Axiata PLC will help to find the business
opportunities to Dialog Axiata PLC enable to have strong market position. As well as the
analysis of the weaknesses of the Dialog Axiata PLC that will help to minimize the threats.
The threats may reduce the demand of the Dialog Axiata PLC services. Therefore, this
analysis is useful to carve business strategies towards the sustainable share value in the
market.
 Dialog Axiata PLC traits mentioned through Strength and Weaknesses, Competitive
factors mentioned through opportunities and Threats of the company. Because, marketing
situations of the Dialog Axiata PLC is identified through internal, external strategies
analysis based on the firm traits and competitive factors. The Dialog Axiata PLC key
strengths, weaknesses and the potential opportunities and threats. This will be helpful to
formulate the strategies and for the better understanding about Dialog Axiata PLC
Customers, Competitors, Bank current position in the Competitive banking industry.
 Internal Analysis (Strength & Weakness)

 Strength
 Dialog has the first mover advantage of GSM technology in Sri Lanka.
 Due to its strong infrastructure it has got one of the best & far reaching mobile
telecommunication coverage.
 Relationship with a telecommunication tycoon in the same region; Telecom Malaysia
Group.
 Extension in collaborations maintaining good relation with other telecom companies has
enabled Dialog to have a global approach with service such as & satellite Coverage & high
roaming.
 Dialog Telecom has got a very aggressive marketing strategy which enables it to have a
good & stable Brand Equity.
 Company’s financial analysis proved excellent stability in financial statements regarding
investment.
 Strong Public Relationship that has been built up over the year.
 Expanded CSR initiatives increased the social valve of the firm.
 High quality technical innovations has made Dialog market leader in Sri Lanka.
 Constant rise in the share prices has gained the confidence of the investors leading to valve
increment.
 Strong distribution network spread throughout the entire island.
 Well managed customer care support techniques has increase the level of customer
satisfaction.
 Wide variety of products.
 Management Team is efficient & hard-working.
 High level of corporate business knowledge retention through low employee turnover.

 Weakness
 Through the investment on advertising & valve addition through technical innovation is
high, there is no clear aim & idea of a broader market.
 Poor performance as on ISP.
 Compared to its competitors Dialog lags behind in innovation related to pricing strategies.
 The head office in Colombo is of a distributed nature due to non-expandability of the
current location.
 The level of motivation of internal employees is decrease.
 Due to the rapidly growing customer base the trends in Quality of service are going down
by the day.
  In the front-office employee turn-over is high.

 External Analysis (Opportunities & Threats)

 Opportunities
 Telecom is one of the fastest growing sectors in Sri Lanka’s 19.5million people.
 As per estimations 4.5million user would have mobile phones by the end of 2006.
 The communication industry is growing rapidly.
 Fixed line penetration is low.
 The approval & acceptability of the Valve Added Service (VAS) by the users has increased
the probability & success of any new VAS initiative.
 The strategic partnership of Dialog Telecom with Vodafone UK.
 Dialog has got the potential to gain benefits of Valve Chain Convergence.
 Technology advancements especially in mobile multimedia technologies & the advent &
use of the next 3G mobile communication.

 Threats
 Strongest competitor of Dialog, the Mobile wing of fixed line telecom giant SLT is focused
on cost-cutting strategy through its low cost per-paid products in the market.
 Rapid changes in the political, social & economic conditions as well as the laws
 Changes in currency exchange rates & high inflation which is inversely affecting the global
business.
 Rapid change in customer preferences & their growing needs due to high level of customer
awareness.
 Constant changes in technology.
 Dialog had to switch off all base station in northern-province during the last few month
due to military operations by the Sri Lankan Govt. forces. Thus there is an uncertainty due
to the growing counter terrorist campaigns.
 Conclusion & Recommendation

 According to my strategic analysis, the Dialog Axiata PLC is High profitable and stable in
the Telecommunication Industry. They have average threat from its competitors and also
they have excellent brand name and trust that is giving more benefits to them in the
industry.