An Introduction To Dialog Telekom Ltd Business Analysis

Table of Content

Dialog Telekom PLC ( The Company ) operates Sri Lanka ‘s largest and fastest turning telecommunication web – Dialogue GSM. Dialog Telekom is one of the largest companies listed under the Colombo Stock Exchange. It is a subordinate of the Axiata Group Berhad. Due to Dialog the Sri Lankan Mobile industry has achieved new highs and has come at par with the developed universe.

The telecom company operates 2G, 3G and 3.5G Mobile services, back uping the current tendencies in nomadic cyberspace and multimedia services, every bit good as international roaming. Dialog Telekom histories for more than 50 % of Sri Lankan mobile phone endorsers.

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Along with the nomadic telecommunication concern Dialog Telekom operates a broad portfolio of international telecommunication services including retail and sweeping international voice and information services.

Dialog Broadband Networks Pvt. Ltd. ( DBN ) is an owned subordinate of the Company, and is an of import participant in Sri Lanka ‘s ICT substructure sector. DBN was besides the first service supplier in Sri Lanka to present high-velocity broadband cyberspace services based on Wi MAX engineering.

Dialog Television Pvt. Ltd. ( Dialog Television ) is another subordinate of Dialog Telekom PLC. It operates Dialog Satellite Television, a Direct-to-Home ( DTH ) Satellite Television service. Dialog Television supports a broad scope of international and local telecasting channels.

Sing the construction of the company, Dialog Telekom Ltd. has got a Hybrid construction which is a combination of Matrix construction every bit good as Modular construction. As in each Strategic Business Unit ( SBU ) works independently and every map of each SBU has communicating linkages with one another. Exceed down every bit good as underside up communicating is available and it uses world-wide resources and engineerings.



1. Dialogue has the first mover advantage of GSM engineering in Sri Lanka.

2. Due to its strong substructure it has got one of the best and far making nomadic telecommunication coverage.

3. Relationship with a telecommunication baron in the same part ; Telekom Malaysia Group.

4. Extension in coactions keeping good dealingss with other Telecom companies has enabled Dialog to hold a planetary attack with services such as and Satellite Coverage & A ; high roaming.

5. Dialog Telekom has got a really aggressive selling scheme which enables it to hold a good and stable Brand Equity.

6. Company ‘s fiscal analysis proved first-class stableness in fiscal statements sing investings.

7. Strong Public Relationship that has been built up over the old ages.

8. Expanded CSR enterprises increased the societal value of the house.

9. High quality proficient inventions has made duologue market leader in Sri Lanka.

10. Changeless rise in the portion monetary values has gained the assurance of the investors taking to value increase.

11. Strong distribution web spread throughout the full island..

12. Well managed client attention support techniques has increase the degree of client satisfaction.

13. Wide assortment of merchandises.

14. Management Team is efficient and hard-working.

15. High degree of corporate concern cognition keeping through low employee turnover


1. Though the investing on advertisement and value add-on through proficient invention is high, there is no clear purpose and thought of a broader market

2. Poor public presentation as on ISP.

3. Compared to its rivals Dialog lags behind in inventions related to pricing schemes.

4. The caput office in Colombo is of a distributed nature due to non-expandability of the current location.

5. The degree of motive of internal employees is diminishing.

6. Due to the quickly turning client base the tendencies in Quality of Service are traveling down by the twenty-four hours.

7. In the front-office employee turn-over is high.

Opportunities –

1. Telecom is one of the fastest turning sectors in Sri Lanka ‘s 19.5million people

2. As per appraisals 4.5million users would hold nomadic phones by the terminal of 2006

3. The communicating industry is turning quickly.

3. Fixed line incursion is low.

4. The blessing and acceptableness of the Value Added Services ( VAS ) by the users has increased the chance and success of any new VAS enterprise.

5. The strategic partnership of Dialog Telekom with Vodafone UK.

6. Dialogue has got the possible to derive benefits of Value Chain Convergence.

7. Technology promotions particularly in nomadic multimedia engineerings and the coming and usage of the following 3G nomadic communications.


1. The being of all the other three GSM Mobile service suppliers pose a large menace to Dialog Telekom.

2. India ‘s Bharti Airtel Ltd. has got the licence to be the 5th Mobile operator in Sri Lanka and launch the 2G and 3G services in 2007.

3. The three bing CDMA service suppliers besides pose a different sort of menace.

4. Strongest Competitor of Dialog, the Mobile wing of fixed line telecom giant SLT is focused on cost-cutting scheme through its low cost pre-paid merchandises in the market.

5. Rapid alterations in the political, societal and economic conditions every bit good as the Torahs and ordinances.

6. Changes in currency exchange rates and high rising prices which is reciprocally impacting the planetary concern.

7. Rapid alteration in client penchants and their growth demands due to high degree of client consciousness.

8. Changeless alterations in engineering.

9. Dialogue had to exchange off all base station in northern-province during the last few months due to military operations by the Sri Lankan Govt. forces. Therefore there is an uncertainness due to the turning antagonistic terrorist runs.

PESTEL Analysis


Sri Lanka has really positive foreign investing policies. However though Sri Lanka identified importance of liberalisation early as in 1977, due to political intercessions bureaucratic attitudes inherited from colonial reign and hapless administration, the state as a whole and specifically the industry has non grown as it was foreseen at the clip of liberalisation. During the past two decennaries, terrorist activities have remained changeless as good.


Unstable macro-economic environment and trade policy government has a negative impact on the industry. The autumn of the exchange rate over the old ages happened on a gradual gait.

Since the origin of liberalisation policy it has undergone monolithic reforms in this sector. However Sri Lanka lags kineticss incorporated by India to pull foreign direct investings. The attitude towards foreign direct investings needs to be improved.


Sri Lanka has better societal conditions for illustration literacy rate is high, infant mortality rate is low and life anticipation is long. The state besides has an educated and trainable work force.

However Sri Lankans inherit a bureaucratic attitude from the colonial disposal that consequences in inefficiencies and favoritism.


Sri Lanka depends on engineering transportations from foreign direct investings. However TRCSL encourages local research and development.

The state relatively has non performed good plenty to accommodate technological alterations on a timely mode. For illustration the displacement from parallel to digital and the acceptance of CDMA engineering materialized in a slow gait.

Ecological & A ; Legal

TRCSL the regulative organic structure takes up multidimensional functions. It ensures just enforcement of Govt. policy, clasp operators accountable for public presentation, address consumer issues, proctor altering industry demands and supply feedback to the policy doing units.

However TRCSL has been criticized over the old ages for information dissymmetry, inefficiency and favoritism.

Porter ‘s Five Forces –

1. Menace of New Entrants

a. India ‘s Bharti AIRTEL has got the fifth Mobile operator licence in Sri Lanka

B. As per TRCSL, no more licences would be awarded

c. Thus it creates an entry barrier for all others to the market

2. Dickering Power of Customers

a. Consumer protection groups are about non-existing

B. As compared to the West, consumers are non that strong in their demands

c. Quality criterions and supports are relatively non major concern if they exist at a basic degree

d. Low shift costs

e. Customers are extremely cost witting

3. Menace from Substitutes

a. Almost negligible

B. Options are fixed line and the more recent CDMA connectivity

c. This is a much smaller market as compared to the immense sum market

4. Dickering Power of Suppliers

a. Local and International providers for Dialog

B. Depends on SLT, MTT and a few other VSAT operators to entree the national anchor

c. Thus these peculiar providers are highly powerful

d. Acquisition of MTT and the creative activity of the new subordinate known as Dialog Broadband Network

5. Rivalry Among Competing Firms

a. Very high competition with changeless pricing wars

b. Dialog surely has an border because of their Value Added Services and distinction scheme and the immense client base

c. Value Added Services are going really popular among the consumers

Strategic Groups Adopted by the Company

Dialog schemes are seeable in the company ‘s corporate, concern and functional degrees. They have already diversified their concern across many countries during the last few old ages. For case, by geting MTT, Dialog managed to beef up its transmittal anchor. Besides recent yesteryear it has acquired CBNSAT, a satellite Television transmittal company, and DERANA TV Channel with a long term aim of a value concatenation convergence. In add-on to make the client, Dialog has created many confederations with other concern corporations. Cargills-Dialog confederation to let Cargills clients to settle Dialog measures is merely one such illustration.

The concern program is formulated at the beginning of the twelvemonth sing chief aims of the company. The advancement of each undertaking is monitored in a monthly footing through different strategic commission meetings.

On the other manus, Dialog tries to present latest engineerings into the market sing planetary mega tendencies through its comprehensive Research and Development wing.

Among them, the Dialogs enterprise to setup the Dialog Research Lab at the University of Moratuwa is of importance because it efficaciously enabled Dialog to supply seamster made solutions to the local market. Nokia phones with Sinhala linguistic communication support and Tsunami warning system for Mobiles are merely to call a few such illustrations. These engineering enterprises can be considered as a scheme used to capture the market by efficaciously remaining in front from the competition in the engineering and invention sphere.


The Company ‘s concern and operations are managed under the supervising of the Board of Directors comprising of 5 non-executive managers and 1 executive manager. The Board has the power to name executive managers including the CEO. Divisional construction can be identified in company degree but public presentations of the divisions are measured through different strategic commissions.


Apart from the proficient anchor, Dialog uses several systems to put to death their concern schemes successfully. For example-

SAP ERP ( Enterprise Resource Planning ) – This was launched in 2006 January to incorporate identified cardinal procedure in the company.

CCBS ( Customer Care Billing System ) – Presently bing charging system is traveling to be migrated into a new system to supply more client centric services.

HRIS – Used for Human Resource Management and all the twenty-four hours to twenty-four hours maps are carried out through this system.


The direction manner ever depends on marks and aims. Strict deadlines are imposed while public presentation and advancement are really closely monitored at all degrees of the organisational construction. Wagess and benefit strategies are in line for the top performing artists and better accomplishments.

All the employees will hold a figure of recreational chances such as trips, get-together, athleticss etc. to take some clip off from busy work agendas.


The Company presently employs a work force of 2500 who in bend are considered polar to the organisation ‘s growing and success. Annual work force planning and enlisting is carried out in analogue with the concern program readying. The capablenesss required by possible employees are based on the demands of the concern programs applicable to several sections of the company in any given twelvemonth. Recruitment to the Company is governed by several policies. The nucleus policy on make fulling vacancies spells out the Company ‘s purpose to pull the best with the purpose of working the person ‘s possible while supplying calling development chances irrespective of communal or gender differences. 7 % of the entire HR cost is devoted to preparation and development. The preparation demands for persons and squads are identified from the competence demands originating from the Company ‘s concern program and employees ‘ one-year public presentation reappraisal.

Subordinate Goals

All persons with different backgrounds, different ethnics and states are teamed up and driven towards a common set of ends and aims at Dialog Telekom. The company has been successful in concentrating the full squad towards a individual vision by integrating all persons ‘ ends and personal aim together.


Dialog squad consists of figure of persons with typical capablenesss and competences from top to bottom. Dialog is proud to hold a really energetic and gifted CEO in the quality of Dr. Hans Wijesuriya. In add-on to that Dialog is served by a squad of top category person in the Sri Lankan industry with batch of endowment and exposures.

Different Schemes Adopted by Dialog Telekom

Corporate Scheme

Sing the current public presentation, the cardinal success factors and the SWOT analysis the directional scheme options would be the undermentioned –

Growth scheme to spread out the activities of Dialog Telekom farther would be the first option. Since the current merchandise lines have existent growing potencial concentration of resources on those would be ideal. In concentration Dialog Telekom can follow the perpendicular growing scheme to take the benefit of the value concatenation convergence chance that is bing in Sri Lankan context.

Stability scheme to go on with current activities without any alterations to the way would be the 2nd option. Here Dialog Telekom can use pause/proceed with cautiousness scheme to hold merely incremental betterments while the failings stated are overcome. It can utilize this clip to stabilise the organisation due to the alterations took topographic point due to multiple schemes it adopted earlier such as acquisitions and puting on advanced developments, which will assist to acquire back the loosing internal employee motive.

The first option will travel Dialog Telekom farther off from the competition and make a monopoly temporarily for converged industries of telecommunication, content, media and retail. However unfocussed highspeed growing to capture the market without stabilising the bing acquisitions can dismantle everything. The 2nd option will give Dialog Telekom and its employees much needed take a breathing infinite.

The recommendation would be to implement the 2nd alternate ab initio to stabilise the organisation without any other drastic alteration in the way. And after some clip they can follow their long term good value concatenation convergence option depicted in first option.

Business Scheme

The concern scheme options available for Dialog Telekom to better the competitory place in the industries it operates would be –

The first option for the competitory scheme would be to better on the current scheme of distinction. It can better this by holding alone Value Added Services for each of its current strategic concern units DBN, CBNSAT and Dialog Telekom itself. This can better the client trueness and thereby can bear down a sensible premium rate than rivals.

Second option which Dialog Telekom can seek to implement is cost leading to get the better of the menace of lower rates provided by rivals, Mobitel. Since the VAS are less in Mobitel the shift from Dialog to Mobitel is non much in urban people who use these VASes. But people who are utilizing strictly as a voice/sms merely are switching as most of them are cost witting and there is non much of a difference in coverage. Hence if Mobitel improves on its VASes it would go a serious menace at a phase at which merely the rates would make up one’s mind the attractive force of that section of the market.

Typically the distinction scheme is more likely to bring forth higher net incomes than low cost scheme. However distinction scheme execution may affect higher investing than low cost scheme.

Competitive range is an of import factor when sing competitory schemes. The recommended alternate depends on the competitory range in this state of affairs. Sing both options and the pros and cons of each most ideal would be to hold apogee of both differing from the section of the market. Dialog Telekom should hold a focussed distinction scheme in the market where people are valuing the VASes and cost focal point in the market where use is strictly for voice/SMS.

Simultaneously Dialog Telekom should look at strategic confederations as a corporate scheme to derive competitory advantage by working with other organisations. Presently they have stated this with some Bankss and some supermarket ironss as mentioned earlier. However this can be immensely improved to include confederations with insurance companies, stock agents, popular nutrient ironss etc.

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An Introduction To Dialog Telekom Ltd Business Analysis. (2017, Jul 23). Retrieved from

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