Dialog presentation
- 2. An Analysis On Dialog Axiata PLC “The Future Today”
- 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.”
- 10. Theoretical Aspects of Vision Statement • What is Vision? • What do we want to become..
- 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
- 21. PEST Analysis • Economic Forces • Social, Cultural, Demographic & Natural Environment Forces • Political, Government & Legal Forces • Technological Forces
- 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.
- 24. Cont… 2. Economic Forces • Depreciation in Rupee • Increasing GDP Per Capita
- 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
- 32. Strategy Analysis & Choice
- 33. Strategy Analysis & Choice • Stage 1 – Input Stage • EFE Matrix • IFE Matrix • Stage 2 – Matching Stage • SWOT • SPACE Matrix • BCG Matrix • IE Matrix • Grand Strategy Matrix
- 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
- 37. Strategy Analysis & Choice • Stage 1 – Input Stage • EFE Matrix • IFE Matrix • Stage 2 – Matching Stage • SWOT • SPACE Matrix • BCG Matrix • IE Matrix • Grand Strategy Matrix Stage 3 – Decision Stage Quantitative Strategic Planning Matrix QSPM
- 38. •QSPM.xlsx
- 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
- 42. Thank You…