ASSIGNMENT ONE STRATEGY FORMULATION DIALOG AXIATA PLC

Task 1
Dialog Axiata PLC is Sri Lanka's largest telecommunications service provider, which operates Dialog Mobile, the country's largest mobile phone network with over 6 million subscribers. Dialog is a subsidiary of Axiata Group Berhad and Dialog was Listed on the Colombo Stock Exchange in 2005 and was the countrys first USD 1 Billion market capitalised company on the Colombo Stock Exchange in terms of market capitalization. History Dialog launched its services in 1995 as the 4th entrant to Sri Lankas Cellular Market and was the first digital network in South Asia. Dialog was also the first operator in the region to deliver international roaming in 1997. Dialog Mobile presently has the largest number of subscribers and revenue share. In 2010 the company received the highest "Platinum" rating in the countries first-ever Corporate Accountability Index. The company operates on 2.5G, 3G and 3.5G communications networks, and was the first company to launch commercial 3G and HSPA+ operations in South Asia. In addition, Dialog Axiata recently announced that the company has switched on its 4G LTE Network in Colombo becoming the first LTE pilot network in South Asia. Dialog was the first mobile operator to cover the Jaffna peninsula in Northern Sri Lanka within 90 days of the ceasefire agreement in 2002 and again in 2009 was the first mobile operator to extend its GSM network to the areas in the North and East Province where the war was fought and presently has 80% market share in the region Dialog Axiata is an investor under the aegis of the Board of Investment of Sri Lanka and has invested over 1 billion US dollars towards the development of telecommunications infrastructure in Sri Lanka, and is one of the largest investors in the island while being the largest investor in the telecom sector Dialog is also the official Sri Lankan partner of the mobile operator Vodafone. Products In addition to its core business of mobile telephony, the company operates a portfolio of services including Dialog TV, the country's Direct to Home Satellite TV service and Dialog Global which provides international telecommunication services. Dialog Broadband offers fixed-line and broadband internet services, whilst Dialog Tele-Infrastructure is the companys national telco infrastructure arm. 1. 2. 3. 4. Dialog Mobile Dialog Television (DTV) Dialog Fixed Line (CDMA) Dialog Global - provides international services with GSM roaming coverage of 211 destinations internationally, on over 530 networks.

Task 2
Stakeholder Analysis is the theory that an organization can enhance the interests of its stakeholders without damaging the interests of its wider stakeholders. One of the difficulties of stakeholder theory is allocating importance to the values of different groups of stakeholders, and a solution to this is proposed by stakeholder value analysis. Policymakers and managers can use a stakeholder analysis to identity the key actors and to assess their knowledge, interests, positions, alliances, and importance related to the policy. This allows policymakers and managers to interact more effectively with key stakeholders and to increase support for a given policy or program. When this analysis is conducted before a policy or program is implemented, policymakers and managers can detect and act to prevent potential misunderstandings about and/or opposition to the policy or program. When a stakeholder analysis and other key tools are used to guide the implementation, the policy or program is more likely to succeed.

Task 3
Let us look at DIALOGs strategic position. For this a purposes let us begin with a SWOT analysis. SWOT analysis Strengths  Dialog has a customer base of 6 million.  Dialog branded Sri Lankas largest Mobile Service Provider, is technologically at the cutting edge and a leader in Sri Lankas telecommunication industry.  The company has covered the entire Sri Lankan nation with its network. Weakness  CDMA business is outdated due to Cellular phone usage  Decline in fixed line usage.  SLT enters to the satellite tv market with SLT mega line introducing tv, broadband and voice calls. Opportunities  Becoming the leader in Mobile industry, by competing with other leading mobile service providers  Global telecommunications and new technology brands see Dialog as a key strategic player in the Sri Lankan market  Rural areas are yet only using a few basic services offered by Dialog.

Threats New technology Risk of changes in the regulatory environment Low usage of fixed telephone line Socioeconomic and political factors can have a considerable influence on the business climate and are often not within the companys control. The Dialog is surrounded by its external environment which is out of its control, a scan the environment is very essential for any organization under any Jurisdiction. A PEST analysis would serve this purpose. PEST Analysis Political Factors  Present government is stable  Since Dialog is a government organization, there are too much influences  Risk of changes in the regulatory environment Economical Factors     The level of inflation is current stable compared to recent past Cost living is high, thus people would try to reduce communication costs Long-term prospects for the economy Gross Domestic Product (GDP) per capita is high Government tax system is complex and high with regard to Telecommunications    

Social Factors  Sri Lanka is a nation who respects religion and traditions, therefore excepting the people in Colombo region would resist new innovations, new technologies Technological Factors  Communication industry is and will continue to change rapidly  Global technology changes are more faster  Government spending Research is very low Porter's Five Forces Model The PEST analysis looks into the greater Uncontrollable environment and insight about the Industry in which Dialog is living. Porter explains that there are five forces that determine industry attractiveness and long-run industry profitability. These five "competitive forces" are: The Threat of Entry of new competitors (new entrants)  Security/Fraud: When you think about using a free VoIP service, like Skype, you do not necessarily think about fraud. However, when you start looking at the pay VoIP services, fraud becomes a much larger issue. (Barriers to Entry). The Bargaining Power of Buyers  Pricing: Wireless / cellular and traditional phone service providers have seen demands from consumers drive their price per minute via lower tiered minute and flat rate plans. Pay VoIP providers are entering not at the top, but closer to the bottom of these pricing levels (Buyers).