An Introduction To Dialog Telekom Ltd Business Essay

Dialog Telekom PLC (The Company) operates Sri Lanka's most significant and fastest growing telecommunication network - Dialog GSM. Dialog Telekom is one of the largest companies outlined under the Colombo STOCK MARKET. It is a subsidiary of the Axiata Group Berhad. Due to Dialog the Sri Lankan mobile industry has achieved new levels and has come at par with the developed world.

The telecom company runs 2G, 3G and 3. 5G mobile services, supporting the current tendencies in mobile internet and multi-media services, as well as international roaming. Dialog Telekom makes up about more than 50% of Sri Lankan cellular phone subscribers.

Along with the mobile telecommunication business Dialog Telekom manages a wide collection of international telecommunication services including retail and wholesale international speech and data services.

Dialog Broadband Sites Pvt. Ltd. (DBN) can be an owned subsidiary of the business, and can be an important player in Sri Lanka's ICT infrastructure sector. DBN was also the first service agency in Sri Lanka to introduce high-speed broadband internet services based on Wi Potential technology.

Dialog Television Pvt. Ltd. (Dialog Television set) is another subsidiary of Dialog Telekom PLC. It works Dialog Satellite TV, a Direct-to-Home (DTH) SATELLITE TELEVISION service. Dialog Television supports a variety of international and local television channels.

Regarding the composition of the company, Dialog Telekom Ltd. has got a Hybrid framework which really is a mixture of Matrix composition as well as Modular composition. Such as each Strategic Business Unit (SBU) works separately and every function of each SBU has communication linkages with each other. Top down as well as bottom level up communication is available and it uses worldwide resources and solutions.

MICRO Research THROUGH - SWOT Analysis


1. Dialog has the first mover advantage of GSM technology in Sri Lanka.

2. Because of its strong infrastructure it's got among the finest and significant mobile telecommunication coverage.

3. Romantic relationship with a telecommunication tycoon in the same region; Telekom Malaysia Group.

4. Extension in collaborations keeping good relationships with other Telecom companies has empowered Dialog to have a global way with services such as and Satellite Coverage & high roaming.

5. Dialog Telekom has got a very competitive marketing strategy which permits it to truly have a good and secure Brand Collateral.

6. Company's financial examination proved excellent balance in financial statements regarding purchases.

7. Strong Community Relationship that has been built up over time.

8. Extended CSR initiatives increased the cultural value of the organization.

9. Top quality technical improvements has made dialog market innovator in Sri Lanka.

10. Constant go up in the talk about prices has gained the self-assurance of the investors resulting in value increment.

11. Strong distribution network spread throughout the entire island. .

12. Well supervised customer support support techniques has boost the level of customer satisfaction.

13. Wide variety of products.

14. Management Team is efficient and hard-working.

15. Higher level of corporate business knowledge retention through low employee turnover


1. Although investment on advertising and value addition through specialized invention is high, there is absolutely no clear target and notion of a broader market

2. Poor performance as on ISP.

3. Compared to its rivals Dialog lags behind in improvements related to costing strategies.

4. The head office in Colombo is of a distributed nature anticipated to non-expandability of the existing location.

5. The level of motivation of interior employees is lowering.

6. Due to the rapidly growing customer foundation the movements in Quality of Service are going down by the day.

7. Inside the front-office staff turn-over is high.

Opportunities -

1. Telecom is one of the fastest growing areas in Sri Lanka's 19. 5million people

2. According to estimations 4. 5million users would have cell phones by the end of 2006

3. The communication industry keeps growing rapidly.

3. Fixed line penetration is low.

4. The agreement and acceptability of the worthiness Added Services (VAS) by the users has increased the likelihood and success of any new VAS initiative.

5. The tactical collaboration of Dialog Telekom with Vodafone UK.

6. Dialog contains the potential to get great things about Value String Convergence.

7. Technology progress especially in mobile multimedia system solutions and the introduction and use of the next 3G mobile communications.


1. The lifestyle of all other three GSM Mobile service providers pose a major hazard to Dialog Telekom.

2. India's Bharti Airtel Ltd. has got the license to be the fifth mobile operator in Sri Lanka and unveiling the 2G and 3G services in 2007.

3. The three existing CDMA companies also pose another type of kind of threat.

4. Strongest Rival of Dialog, the Mobile wing of predetermined line telecom large SLT is focused on cost-cutting strategy through its low cost pre-paid products in the market.

5. Quick changes in the political, social and economic conditions as well as the laws and regulations.

6. Changes in forex rates and high inflation which is inversely impacting the global business.

7. Super fast change in customer tastes and their growing needs scheduled to advanced of customer understanding.

8. Constant changes in technology.

9. Dialog acquired to change off all base train station in northern-province during the last few months credited to military procedures by the Sri Lankan Govt. pushes. Thus there is an uncertainty due to the growing counter terrorist promotions.

PESTEL Analysis


Sri Lanka has very positive international investment regulations. However though Sri Lanka determined importance of liberalization early as in 1977, due to politics interventions bureaucratic attitudes inherited from colonial reign and poor governance, the united states as a whole and specifically the industry hasn't grown as it was foreseen during liberalization. In the past 2 decades, terrorist activities have continued to be frequent as well.


Unstable macro-economic environment and trade policy regime has a poor impact on the industry. Nov the exchange rate over the years happened on the gradual pace.

Since the inception of liberalization insurance plan it has undergone substantial reforms in this sector. However Sri Lanka lags dynamics designed by India to catch the attention of foreign direct opportunities. The attitude towards foreign immediate investments must be improved upon.


Sri Lanka has better interpersonal conditions for example literacy rate is high, toddler mortality rate is low and life span is long. The united states also has an informed and trainable work force.

Nevertheless Sri Lankans inherit a bureaucratic frame of mind from the colonial administration that results in inefficiencies and discrimination.


Sri Lanka depends on technology exchanges from foreign immediate ventures. However TRCSL induces local research and development.

The country relatively hasn't performed sufficiently to adapt technical changes on the timely manner. For example the shift from analogue to digital and the adoption of CDMA technology materialized in a poor pace.

Ecological & Legal

TRCSL the regulatory body takes up multidimensional jobs. It ensures good enforcement of Govt. policy, hold operators in charge of performance, address consumer issues, keep an eye on changing industry needs and provide opinions to the insurance plan making devices.

However TRCSL has been criticized over the years for information asymmetry, inefficiency and discrimination.

Porter's Five Makes -

1. Threat of New Entrants

a. India's Bharti AIRTEL contains the fifth mobile operator certificate in Sri Lanka

b. As per TRCSL, no more licenses would be awarded

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

2. Bargaining Ability of Customers

a. Consumer security organizations are almost non-existing

b. When compared with the west, consumers are not that strong in their demands

c. Quality specifications and helps are relatively not major concern if they can be found at a basic level

d. Low turning costs

e. Customers are highly cost conscious

3. Threat from Substitutes

a. Almost negligible

b. Alternatives are set series and the more recent CDMA connectivity

c. This is a much smaller market when compared with the huge total market

4. Bargaining Electricity of Suppliers

a. Local and International suppliers for Dialog

b. Depends upon SLT, MTT and some other VSAT providers to gain access to the countrywide backbone

c. Thus these particular suppliers are extremely powerful

d. Acquisition of MTT and the creation of the new subsidiary known as Dialog Broadband Network

5. Rivalry Among Fighting Firms

a. Very high competition with continuous pricing wars

b. Dialog certainly comes with an edge because of their Value Added Services and differentiation strategy and the huge customer base

c. Value Added Services have become very popular among the consumers

Strategic Communities Adopted by the Company

Dialog strategies are noticeable in the company's corporate, business and useful levels. They have varied their business across many areas over the last few years. For example, by acquiring MTT, Dialog were able to strengthen its transmission backbone. Also recent past it has received CBNSAT, a satellite television transmitting company, and DERANA Tv set Channel with a permanent objective of the value string convergence. In addition to reach the customer, Dialog has generated many alliances with other business companies. Cargills-Dialog alliance to allow Cargills customers to stay Dialog bills is merely one particular example.

The business plan is produced at the start of the entire year considering main aims of the business. The progress of each project is monitored in a monthly basis through different tactical committee meetings.

On the other side, Dialog will try to bring in latest technologies into the market considering global mega styles through its comprehensive Research and Development wing.


Year of Implementation



Introduction of GSM Technology


1stin South Asia


Short Messaging Service (SMS)


1stin South Asia


Automatic International Roaming (AIR)


1stin South Asia


WAP (Mobile Internet)


1stin South Asia


General Packet Radio Service (GPRS)


1stin South Asia


Location Based mostly Services (LBS)


1stin Sri Lanka


Missed Call Alert


1stin Sri Lanka


Multimedia Messaging Service (MMS)


1stin South Asia


Trial 3G Service


1stin South Asia


Call Home Service for Outbound Roamers


1stin Sri Lanka


EDGE Service


1stin Sri Lanka

Among them, the Dialogs effort to setup the Dialog Research Lab at the College or university of Moratuwa is of importance since it effectively empowered Dialog to provide tailor made solutions to the neighborhood market. Nokia telephones with Sinhala dialect support and Tsunami caution system for mobiles are merely to name a few such examples. These technology initiatives can be viewed as as a technique used to capture the marketplace by effectively keeping ahead from your competition in the technology and invention sphere.


The Company's business and functions are managed under the supervision of the Table of Directors comprising of 5 non-executive directors and 1 executive director. The Panel has the power to appoint executive directors including the CEO. Divisional structure can be discovered in company level but performances of the divisions are assessed through different proper committees.


Apart from the technical backbone, Dialog uses several systems to do their business strategies effectively. For example-

SAP ERP (Organization Source of information Planning) - This is launched in 2006 January to assimilate determined key process in the business.

CCBS (CUSTOMER SUPPORT Billing System) - Currently existing billing system is going to be migrated into a fresh system to provide more customer centric services.

HRIS - Used for Human Source Management and all the day to day functions are completed through this system.


The management style always will depend on targets and targets. Tight deadlines are enforced while performance and progress are very directly monitored at all degrees of the organizational composition. Rewards and advantage schemes are in-line for the most notable performers and better accomplishments.

All the employees will have lots of recreational opportunities such as trips, get-together, activities etc. to take the time off from busy work schedules.


The Company currently employs a labor force of 2500 who in turn are believed pivotal to the organization's expansion and success. Annual manpower planning and recruitment is carried out in parallel with the business enterprise plan prep. The features required by potential employees derive from the requirements of the business enterprise plans appropriate to respected departments of the business in any given yr. Recruitment to the business is governed by several regulations. The core policy on filling vacancies spells out the Company's intention to get the best with the purpose of exploiting the individual's potential while providing profession development opportunities regardless of communal or gender variances. 7% of the full total HR cost is devoted to training and development. Working out needs for folks and clubs are identified from the competency requirements arising from the Company's business plan and employees' total annual performance review.

Subordinate Goals

All people with different backgrounds, different ethnics and nations are teamed up and influenced towards the group of goals and aims at Dialog Telekom. The company has prevailed in focusing the entire team towards an individual vision by making use of all individuals' goals and personal goal together.


Dialog team contains amount of people with distinctive functions and competencies throughout. Dialog is proud to have a very enthusiastic and talented CEO in the grade of Dr. Hans Wijesuriya. In addition to that Dialog is offered by a team of top quality person in the Sri Lankan industry with great deal of talent and exposures.

Different Strategies Used by Dialog Telekom

Corporate Strategy

Considering the current performance, the key success factors and the SWOT evaluation the directional strategy alternatives would be the next -

Growth strategy to expand the activities of Dialog Telekom further will be the first alternative. Because the current products have real expansion potencial attention of resources on those would be ideal. In awareness Dialog Telekom can follow the vertical expansion strategy to take the benefit of the value string convergence opportunity that is existing in Sri Lankan context.

Stability technique to continue with current activities with no changes to the route would be the second alternative. Here Dialog Telekom can utilize pause/carry on with caution technique to have only incremental advancements as the weaknesses explained are overcome. It could use this a chance to stabilize the business due to the changes occurred scheduled to multiple strategies it implemented before such as acquisitions and trading on innovative developments, which will help to get back the loosing inner employee desire.

The first alternative will move Dialog Telekom further from the competition and create a monopoly briefly for converged companies of telecommunication, content, mass media and retail. However unfocused highspeed development to capture the market without stabilizing the prevailing acquisitions can disassemble everything. The second alternative gives Dialog Telekom and its own employees essential breathing space.

The recommendation would be to implement the second alternative primarily to stabilize the business without the other severe change in the course. And after some time they can take up their permanent beneficial value string convergence option depicted in first solution.

Business Strategy

The business strategy alternatives designed for Dialog Telekom to increase the competitive position in the companies it works would be -

The first alternate for the competitive strategy is always to improve on the current strategy of differentiation. It can improve this insurance agencies unique Value Added Services for every single of its current proper business units DBN, CBNSAT and Dialog Telekom itself. This may improve the customer loyalty and thereby may charge a reasonable premium rate than competition.

Second choice which Dialog Telekom can make an effort to implement is cost command to get over the risk of lower rates provided by challengers, Mobitel. Since the VAS are less in Mobitel the moving over from Dialog to Mobitel is very little in metropolitan people who use these VASes. But people who are using purely as a speech/sms only are moving as the majority of them are cost mindful and there is not much of a difference in coverage. Hence if Mobitel increases on its VASes it would turn into a serious danger at a stage at which only the rates would determine the attraction of this segment of the marketplace.

Typically the differentiation strategy is much more likely to create higher gains than low cost strategy. However differentiation strategy execution may entail higher investment than low cost strategy.

Competitive scope can be an important factor when considering competitive strategies. The suggested alternative depends on the competitive scope in this example. Considering both alternatives and the professionals and cons of each most ideal would be to have culmination of both differing from the segment of the marketplace. Dialog Telekom must have a targeted differentiation strategy in the market where people are valuing the VASes and cost focus in the market where usage is solely for words/SMS.

Simultaneously Dialog Telekom should look at strategic alliances as a corporate technique to gain competitive advantages by dealing with other organizations. Currently they have stated this with some finance institutions plus some supermarket chains as stated earlier. However this is vastly improved to include alliances with insurance companies, stock brokerages, popular food chains etc.

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