Executive Summary.....................................................................................................................................2
About Sri Lanka Telecom............................................................................................................................3
Industry evaluation......................................................................................................................................3
Porter five forces:........................................................................................................................................5
Threat of latest entrant.............................................................................................................................5
The bargaining power of consumers........................................................................................................6
SWOT analysis tool.....................................................................................................................................8
Strength...................................................................................................................................................8
SWOT version.........................................................................................................................................8
Strengths:.................................................................................................................................................9
Weakness:................................................................................................................................................9
Opportunities:..........................................................................................................................................9
Threats:..................................................................................................................................................10
Recommendation.......................................................................................................................................10
Conclusion.................................................................................................................................................11
Executive Summary
Strategic Management is defined as set of got motion and conclusions that enables in shaping the
long-run typical overall performance of the commercial company. Its far at the side of
environmental scanning, each inner and out of doors surroundings, and approach method,
implementation of strategies, assessment and control techniques. Henceforth, strategic
manipulate highlights at the evaluation and monitoring of the outside threats and possibilities
within the heritage of business agency's inner potencies and weaknesses
Industry evaluation
What is enterprise competitiveness and what are its characteristics, what is high competitive
enterprise, what takes place while dealing with high aggressive industry
"The company's proximate environment is its enterprise surroundings; for this reason the focal
point of our environmental analysis could be enterprise analysis." (Furnish, 2010, p. 67).
Furnish (2010) relates industry evaluation to each company and enterprise strategies. Company
approach to decide which enterprise the firm to perform and allocate it resources accordingly that
needs deep take a look at for the industry profitability degree that itself depends at the
completive intensity.
Enterprise method is to work to gain completive advantages by means of studying the clients'
specification and locate the exceptional manner to fulfill their desires.
The environment of the firm includes all outside elements that have impact on its strategy. As in
keeping with PESTEL evaluation, environmental effects are grouped into political, reasonablypriced, social, technological, prison and environmental forces. The primary purpose of the
external environmental analysis is to decide the maximum related forces that impact the
company to be considered correctly at some stage in the strategy choice. The contribution of
outside environment analysis is to assist the employer to generate income and to achieve this
firm need to recognize its clients, suppliers and the completion intensity.
"The core of the company's commercial enterprise surroundings is fashioned by its relationships
with 3 sets of gamers: clients, suppliers, and competition. This is its industry surroundings."
(Provide, 2010, sixty eight). Enterprise analysis begins with the choice approximately the service
or product and the markets, talents and businesses exist inside the industry. Industry analysis will
have a major effect at the competitive where each enterprise has its own traits which have the
main contribution at the corporations to enter/exit or maintain within the enterprise. Two
principal areas need to be considered for enterprise evaluation; company's external surroundings
(macro-surroundings) and organization's inner environment (micro-environment)
Successful strategy for enterprise evaluation ought to begin from a predefined long time goals
that could recognize the surroundings factors alongside the to be had capabilities and sources
followed via effective implementation. As a fashionable method, the company ought to align its
characteristics and be regular with the external surroundings.
In beyond, the economic system became prepared around the organization whereas these days,
the financial system is organized across the market. Its far required for any company to apply
some strategic evaluation gear to observe the enterprise and its marketplace. Examples for these
tools are SWOT analysis, PEST analysis, Porter's five forces analysis, four nook's analysis, aid
primarily based view and price chain evaluation.
The SWOT analysis is one of the famous tools to study and examine the inner organizations
strengths and weaknesses, and the outside opportunities and threats. It belongs to the layout
strategy school.
Pest analysis give attention to 4 elements; political, monetary, social and technological. This
enables the company to understand the forces in macro environment and the opportunities and
threats they may confront. The PEST evaluation is recommended to be performed before SWOT
evaluation if both could be used noting the truth that PEST is used possibly for market analysis.
Porter's 5 forces equipment is one of the most well-known equipment for aggressive position
analysis. It analyzes the micro environment forces from out of doors-within the business using 5
competitive forces. "understanding the aggressive forces, and their underlying causes, famous
the roots of an industry's modern-day profitability at the same time as offering a framework for
looking ahead to and influencing competition (and profitability) through the years ", (Porter,
2008, P. 80). it's far to be stated that Porter's 5 forces device belongs to positioning faculty which
concentrates on the industry evaluation as a key success for the company.
investment to discourage new competition". (Porter, 2008, p. 81). The second problem is the
obstacles that new entrant has to face and his strategy could be shaped for this reason. "If access
obstacles are low and novices assume little retaliation from the entrenched competition, the
hazard of access is high and enterprise profitability is moderated". (Porter, 2008, eighty one).
The main access barriers in Sri Lank telecom marketplace are the subsequent:
This pressure analyzes the providers' electricity at the industry that the company is working. It
may have an effect on the enterprise by way of increasing the expenses and reduce the fine of
services or products. As this electricity will increase the profitability of the firm is affected. In
Telecom market in popular and in Sri Lank market, this power is low.
Offer the equal services. That is the deal with of replacement products in which the synthetic
provides the identical characteristic as alternative for the original product.
The subsequent elements will determine the extent of this risk:
The quality supplied via VOIP (Voice Over internet Protocol) services isn't assured in
comparison to the pleasant provided by using Telecom devices even though the costs are better
nonetheless the customers favor to get related some distance from the VOIP. the new On the
other aspect, new ways of Telecom inclusive of new approaches of chatting over BB messenger
are accommodated and emerged by using the issuer in their providing so Sri Lank culture
nonetheless keep with the high communication device considering the not guaranteed best by
VOIP as alternative product and evaluating the high-quality supplied to the cell conversation
gear and The effect of this force on Sri Lank telecom industry is low.
The version is treating the marketplace structure as static at the same time as the competitive
surroundings isn't and it isn't thinking about the dynamic in contemporary industry in which the
development and improvements are very high (Kippenberger, 1998; Haberberg and Rieple,
2001).
Moreover, the version is layout at the concept of competition. It presumes that the company
desires to obtain competitive advantages over different organizations in the marketplace, as well
as over providers or consumers ignoring some uploading techniques along with "strategic
alliances" or other (Ink pen, 1998). Are providers or shoppers threats to an organization?
In addition, the version equates buyers with the dealers. Are not clients more critical and
advertising and marketing is moving towards carrier and dating advertising and marketing.
One foremost trouble is the reality that the version isn't thinking about the human sources and
their competencies and competencies as key achievement elements for any business enterprise.
Finally, the version misses 3 new forces: deregulation, digitalization and internationalization.
assessment. Its miles vital to keep in mind that whilst the usage of SWOT analysis it is difficult
someday to categorize a few factors that might fall under the 4 classes.
because the intention of this analysis to help the telecom enterprise in Sri Lanka to support the
firm in his choice about getting into this market, SWOT analysis can answer this query correctly.
The following sections will try and identify the factors for telecom industry in Sri Lanka beneath
each class.
Strengths:
As per CITC, the fixed line increase turned into 3 instances more than the boom in the
authorities will retain the demand on fixed strains for each households and enterprise.
The declining own family size will growth the call for mobile telephones.
The growth in cellular telephone is rapid and most subscribers personal a couple of SIMs
(specific operators).
Weakness:
Oligopolistic situations prevails, the sector is depending on STC's ADSL' community
Opportunities:
Imparting new cell and fixed line licenses will provide extra growth.
The 3G marketplace is improving in particular after the new offerings such supplying
The fee discount of ISPs (net service provider) wills growth the growth in internet
market.
Threats:
The high growth of mobile smartphone market is affecting the increase in fixed line.
Unemployment growth at the younger populace can have an effect on the boom of
Recommendation
The higher manner to offer price effectiveness is to place the available property in this sort of
manner that they will be judiciously used at the same time as pleasant the requirements of the
manner at the identical time. Even the growing quantities of capital give to the problems of the
commercial enterprise organization. With the boom in prices, the employer is required to go
together with the gush. Consequently, the chain of call for and deliver is affecting to the intact
company. So long as Honda sticks at the on hand belongings, the opportunities of balance of
finance are sure. Almost about the human employees goals, Honda is needed to art work with
multi-gifted personnel who are capable of performing tasks of all the kinds in notable conditions
and have abilities to seize the outside opportunities. The potencies of boom and improvement are
rich. Except, the price of loose up communication, collaboration and positive attitude is
replicated. For this reason, Honda needs to encourage the fee management or its management
within the business enterprise. Moreover, the sharing of property which consists of uncooked
substances and semi-finished items can cause the reduction in price which is not any less than to
the merged fee.
Conclusion
Strategic manage in SLT is ready at the managerial diploma that is under the placing of dreams
and over the methods. It normally gives course to the SLT and suggests it the methods that it
have to lead for the increase reason. It even assists the SLT in analyzing and evaluating the
possibilities and threats posed through the outside environment in context with the inner
strengths and weak spot of the enterprise. In the end, hints are given simply so SLT can motive a
better outlook in phrases of performance, resources, planning, and operations and so on.