Professional Documents
Culture Documents
Management
Process Analysis of
Dialog Axiata PLC
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17.2
Abstract
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Contents
01. Introduction ...............................................................................................................
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01.1. Introduction to strategic management ...............................................................
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01.1.2 Strategy .............................................................................................................
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01.1.3 Levels of strategy ..............................................................................................
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01.1.3.1. Corporate level .......................................................................................... 1
01.1.3.2 Business level ............................................................................................. 2
01.1.3.3 Functional level .......................................................................................... 2
01.1.4. Benefits of Strategic Management ..................................................................
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1.2. Company Introduction ..........................................................................................
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2. Strategic Purpose – Dialog Axiata PLC .........................................................................
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2.1 Vision - ....................................................................................................................
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2.2 Mission ...................................................................................................................
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2.3 Values .....................................................................................................................
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2.4 Corporate Governance of the Dialog Axiata PLC; ..................................................
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2.5 Stakeholders of the Dialog Axiata PLC; ..................................................................
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3. SWOT Analysis & PESTEl Analysis of Dialog Axiata PLC. ..............................................
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3.1 SWOT Analysis ........................................................................................................
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3.2 PESTEl Analysis .......................................................................................................
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4. Strategic choices. .........................................................................................................
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4.1BCG (Boston Consulting Group) matrix for Dialog Axiata PLC. ...............................
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4.2 Internal and External Matrix for Dialog Axiata PLC. ...............................................
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4.3 TOWS analysis for strategic choices. ....................................................................
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5. Practical implementation of strategies ......................................................................
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5.1 Organisational Structure of Dialog plc. ................................................................
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6. Recommendations .....................................................................................................
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7. Conclusion ..................................................................................................................
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8. References..................................................................................................................
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01. Introduction
01.1.2 Strategy
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Figure 1
01.1.3.1. Corporate level
Corporate level strategy defines the business areas which the firm will operate.
It deals with aligning the resource development across a divers set of business
areas, related or unrelated. Strategy formulation at this level involves
integrating and managing the divers business and realizing the synergy at the
corporate level. The top management team is responsible for formulating the
corporate strategy. The corporate strategy reflects the path towards attaining
the vision of the organization. For an example, Dialog Axiata PLC has their lines
as, Dialog finance PLC, Dialog Broadband Networks (Pvt) Ltd, Dialog Television
(Pvt) Ltd, Digital Holding Lanka (Pvt) Ltd, Dialog Business Services (Pvt) Ltd and
Digital Health (Pvt) Ltd. The corporate levels strategy will outline whether the
organization should compete in or withdraw from each of these lines, and
which business units, investment should increase, in line with the vision of
Dialog Axiata PLC.
Business level strategies are formulated for specific strategic business units and
related to a distinct product-market area. It involves defining the competitive
position of a strategic business unit. The business level strategy formulation is
based on upon the genetic strategies of overall cost leadership, differentiation,
and focus. For an example, Dialog Axiata PLC may choose overall cost
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leadership as a strategy to be pursued in its Dialog finance PLC, differentiation
in Dialog Broadband Networks, and focus in its Dialog Television (Pvt) Ltd. The
business level strategies are decided upon by heads of strategy business units
and their teams in light of the specific nature of the industry in which they
operate.
Ties the organization together with a common sense of purpose and shared
values.
Provides the organization with a clear self-concept, specific goals, and guidance
as well as consistency in decision making.
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Helps managers understand the present, think about the future, and recognize
the signals that suggest change.
Dialog Axiata Group Is Sri Lanka’s largest Foreign Direct Investor (FDI) with
investments totaling USD 2.5 billion. Dialog was also voted by Sri Lankan
consumers as the Internet Service Provider of the Year for seven years
consecutively, and has topped Sri Lanka’s Corporate Accountability rankings
from their inception, for eight Cycles in all succession, and is an ISO 9001
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certified company and National Quality Award and Sri Lanka Business
Excellence Award and endorses the worldwide Sustainable Development Goals
(SDGs) which aim to build a sustainable future for all by 2030.. The Company
delivers advanced mobile telephony and high speed mobile broadband services
to a subscriber base in excess of 13.8 million Sri Lankans, via 2.5G and 3G/3.5G
and 4G/4.5G networks.
2.1 Vision -
2.2 Mission
Champions of Change
Exceptional Performance
Uncompromising Integrity
Responsible Leadership
One Team
Dialog Company shares their vision of being the leader in the Sri Lanka
communication industry through the innovation rendered in the field of
communication technology. This strategy focused by the Dialog would help in
enriching the social image of the concern. Under working on the above vision of
the company, thereby focuses to set the organizational mission of helping to
render potential relationships with the customers. Dialog addressed key
components such as service market, technology, concern for employees etc.
From that the company addresses about themselves and how they position
themselves and differentiate from their rivals. The Dialog company highly also
desires its business processes to be highly flexible in meeting the changing
demands of the market. This sets the organizational culture of the
accountability both in the internal and external sphere and also encourages the
growth of team activities in the concern. In their values, they tried to create a
long-lasting, successful and motivating place to work and also helpful customer
service. As a strategy they mentioned some key values in the mission statement
such as team spirit, customer driven business process and delivery of quality
service for their customers etc. Vision, Mission and Values strategies which
used by Dialog, clearly visualize that they plan to differentiate themselves with
the improved technology over competitors.
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2.4 Corporate Governance of the Dialog Axiata PLC;
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relationship with all the stakeholders while providing for accountability and
sound internal control system.
survey helps to measure the impact of and Dialog’s performance relating to the
identified issue areas.
Strengths Weaknesses
Threats
Opportunities
Fixed telecom line SLT is the
Telecom is one of the quickest biggest threat to the Dialog
growing industries in Sri Lanka's Axiata because they are
19. having low priced post-paid
5million people products in the market. Rapid
changes in the politics, social
The communication industry is
and economic conditions as
growing rapidly.
well as the laws
Having a highly consumer
reputation.
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Table 01.
Political
Sri Lanka has very positive foreign investment policies. However, as early as
1977, Sri Lanka had recognized the importance of liberalization, but political
interventions had not improved as predicted in the liberalization of the country
and the industry as a whole, due to the inherited bureaucratic attitudes of
colonial rule and poor governance.
Terrorist activities have continued in the last two decades. The TRCSL
regulatory body plays multiple roles. It ensures fair enforcement of
government. Responsible for policy and action, solving customer problems,
monitoring changing industry needs and providing feedback to policy making
units. However, TRCSL has been criticized for years for information asymmetry,
inefficiency and discrimination.
Economical
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Legal
Since its inception, liberalization has undergone major reforms in this sector.
However, Sri Lanka lags behind the dynamics that India has incorporated to
attract foreign direct investment. Attitudes towards FDI should be enhanced.
Social
Sri Lanka has better social conditions. For example, the higher the literacy rate,
the lower the infant mortality rate and the longer the life expectancy. There is
also an educated and trained workforce in the country. Nonetheless, Sri
Lankans inherited a bureaucratic attitude from the colonial administration,
resulting in inefficiency and discrimination.
Technological
The country has not been relatively successful in adapting technological changes
in a timely manner. For example, switching from analog to digital and using
CDMA technology is slow. Sri Lanka depends on the exchange of technology
through foreign direct investment. However, TRCSL encourages local research
and development.4. Strategic choices.
High
Business growth
Low BCG matrix is mostly used by the Dialog Axiata PLC in order to evaluate its
Figure
strategic position. Here, 02
the business portfolio in to 4 categories and they are
High Market9share Low
based on industry attractiveness and competition position.
1. Star – this operates in high growth products and maintain high market share
such a dialog TV and Mobile and Dialog broadband network.
2. Question mark – this operates low market share in fast growing markets and
there is no product on this category.
3. Cash cow – products that have the nature with low business growth and high
market share such as Dialog SMS service.
4. Dog – products that has a low business growth and a low market share such as
fixed wireless telecommunication of Dialog
This matrix is used in analyzing the working conditions and the strategic
position of the business.
So as per the internal and external matrix, Dialog Axiata PLC needs to keep hold
and maintain its position at the same level. Furthermore, Dialog needs to
design more strategies in increasing the market penetration and needs to go
further on product development.
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4.3 TOWS analysis for strategic choices.
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3. Strengths – threats – Here , Dialog uses its internal
strengths to face the external threats.
4. Weaknesses – threats – Here , Dialog follows many ways in
order to minimize its internal weaknesses and external
High
Low
VII VIII IX
1.0 – 1.99
Figure 03
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Product development.
Hold and maintain strategy.
Market
penetration.
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5. threats.
The
international
penetration is
yet low in the
country which
has a value of
12.5%.
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Internal strengths ( S ) SO Opening of a ST
• Dialog is a leading • new •
quad play department for
connectivity product With the strong
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Internal weaknesses ( W ) WO. s WT Overcome the
s
• The high pricing • o weaknesses by
charging on IDD converting them into
calls in compare internal strengths.
Reduce the
with its competitors Can be done by
• proce charged
such as Mobitel. reduce the new
on IDD calls. o
s entrants to the
• The Dialog CDMA s
Cut off the market. Building up
did not achieve the
unnecessary partnership with
targeted and unreliable o
Vodafone.
expectations in busine ideas
• Diversifying of
some of their such as the
project CDMA. products.
business ideas. o
With the rapid o
growth of the n
• Even though Dialog
telecommunica
offers roaming to
ti industry ,
almost many Dialog can
enhance its
countries , the
services such
roaming packages
as reducing the
that are offered to
charges of IDD
Dialog customers
calls and for
are with high
roaming s
charges.
package .
Implementation is the process that turns strategies and plans into actions in
order to accomplish strategic objectives and goals. Implementation of
strategies is a combination of strategic position and choices which features the
main three choices opened to the organisation in consonance with the strategic
position of the organisation. In order to implement strategies it has to be
focused on the efficiency, operational background with managing the forces of
the external environment upon leadership and motivation of insiders which
craves the coordination among many people of the organisation.
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In the view of Dialog Axiata, Implementation of strategies takes a peculiar
scrutiny which indicates the adherence of achieving goals and objectives of the
organisation as well as people including internal and external parties. They
always tackle strategies in order to be competitive in the market. Dialog Axiata
was able to strengthen its operations by acquiring MTT as well as CBNSAT and
TV channel called DERANA TV. Cargill’s-Dialog can be taken as a strategic
alliance recently activated by dialog in order to create more value for
customers and to be competitive in the market. The reason behind gaining the
competitive advantages and being the market leader throughout the years is
Dialog formulates a strategic plan at the beginning of each year and the
progress is monitored at the end of each month. Dialog Axiata established a
laboratory in a local university, which always comes up with solutions to local
demands. Tsunami pre alert system and Nokia phones with Sinhala language
settings are some of the examples of that. Dialog Axiata always gain the
competitive advantages over competitors till now mainly because of its
innovativeness as cited in the strategic management implementation by Rashad
Yazdanifard.
Structure - Dialog is consists with five nonexecutive directors and one executive
director. Board directors are the main pillars who have the power of appointing
the CEO. In deeper their divisional structure which performs different divisions
is also measured by different strategies. Dialog has put in place an
organizational structure and working systems to encourage improved
efficiencies and ensure employees stay motivated and happy about the work
they do each day.
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Planning), CCBS (Customer Care Billing system) and HRIS (Human Resource
Management) and these systems have lead the organisation to behave in the
competitive market. Within the company both management and systems
support the progress and make the adaptation faster.
People - Most influential key factor among these, is the confirmation of having
right people at the right position which includes those people with required
skills and competencies that are needed to support the plan. Dialog believes its
employees to be the DNA that defines the Company’s identity. As key
stakeholders of its business, employees form the crux of Dialog’s structural
genome and the lifeblood of its business. By delivering the service excellence
and innovations that enhance the quality of life of its customers, all 3,353
Dialog employees are in fact the true custodians of the Company’s leadership
position in Sri Lanka’s telecommunication industry.
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5.1 Organisational Structure of Dialog plc.
For the strategies to be take part in action there should be proper connection
between the structures, processers and relationships of the organisation.
Company should possess strong internal relationships long with the external
forces. Organising the most relevant structure for the company also leads for
becoming a competitive market actor and the processors used in making the
service available for the consumers have to be incorporate with the strategies
in proper implementation of strategies. Dialog Axiata is appealingly using each
of these three factors associated with each other in gaining more competitive
advantage to be survived in the market.
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6. Recommendations
When it comes to Sri Lankan Telecommunication Industry, all the firms can gain
a very low competitive advantage over being cost effective and adapting new
technologies. The alternatives available for the Dialog PLC to gain an advantage
over their competitors are limited, same as for their competitors. Customer
satisfaction and maintaining a positive relationship is a key when it comes to
gaining an edge over the competitors. 1. Improving differentiation strategies
Lastly, Dialog can focus a more differentiation strategy for VAS while adapting a
cost focused strategy for voice/sms.
Next opportunity would be to improve their relationship with customers. All the
firms in the communication industry in Sri Lanka happened to adapt similar
technologies and cost cutting methods which has diminished their competitive
advantages of low cost and faster connection. But maintaining the relationship
with customers and the efficiency and effectiveness of attending to customer
complaints and resolving them has become a common vulnerability and a weak
spot present in almost all the organizations in the telecommunication market.
Dialog can seize this weakness and turn it around it into a strength by providing
a better and more responsive customer service to their customers. Creating a
team of their own customer service subdivision instead of outsourcing it,
adapting it as a core competency would help them gain a lead over their
competitors.
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3. Implementing Stability Strategies.
Dilaog PLC has been very effective and successful in acquiring new merges and
innovating novel value added services recently. They should now enact a
strategy of slowing down their rapidly expanding value chain for the employees
to get used and handy with the new VAS and technologies they have adapted
so they can provide customers with a faster and more efficient service.
7. Conclusion
Dialog Axiata PLC one of the largest communication service providers in Sri
Lanka. Dialog Axiata was the first digital network in South Asia to launch HSPA +
which is the latest upgrade in mobile broadband. Dialog Axiata offers such as
mobile internet, international gateway, data and fixed wireless media services,
etc. Dialog Axiata serving 7.5 million local subscribers in the present. Also
Dialog Axiata has the 50% market leading in Sri Lankan business industry
Dialog Axiata adapted to a very transparent culture and also Dialog has a very
open communication. Because of that they oriented to emphasize achieving
specific goals and company values competitiveness. They also use very open
strategies to improve their market and done lot of changes to being good
service provider whole over the country.
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Every organization in the world have to follow strategic management practices
to achieve all the goals and objectives because of that strategic management
not only defines theoretical advantages but also regularly practices in the
whole world. Strategic management implemented by the corporation is
required to be monitored in regular intervals to make sure that the group is in
the right way and its mode to its vision and mission. Today strategic
management can be defined as a serious investment consider to the
competitive market in Sri Lanka. This report reviews the strategic process of
Dialog Axiata and state recommendation to practice strategic management
continued by the business to get more growth in the future.
Dialog Axiata performs well in the present day with well-organized technology
and competitors. But due to major facts like price and cost it shows the
company is not control of current market situation anymore. Because of that
Dialog Company has to achieve relevant market position to win the goals more.
Also Dialog company has to execute strategies like hire the right people,
network expansion, stability of cost, review HR programs, invest more in
research and development side, improve the CSR activities more and more etc.
will ensure that company is in the correct path to gain their goals and
objectives.
8. References
Anon, (2020). [online] Available at:
https://www.researchgate.net/publication/322518451_Strategic_Management
_Failures_of_Dialog_Axiata_and_Recommended_Strategic_Approaches_for_Im
plementation [Accessed 25 Feb. 2020].
UKEssays.com. (2020). PESTLE Analysis for Dialog Axiata. [online] Available at:
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https://www.ukessays.com/essays/business/environmental-analysis-of-
dialogtelekom-ltd-business-essay.php [Accessed 26 Feb. 2020].
https://www.ukessays.com/essays/management/strategy-planning-
andimplementation-in-relation-to-practical-strategy-examples-
managementessay.php [Accessed 25 Feb. 2020].
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