Dialog Telekom Limited Leader In Mobile Telecommunication Marketing Essay

Dialog Telekom Limited, the Premier Mobile Telecommunication Company is the largest Mobile operator in Sri Lanka with 60 % of market portion ( that is 3 Million endorsers ) in nomadic Communication sector.

It is subordinate of Telekom Malaysia Group. It besides provides International Service and it besides supports an International Gateway Infrastructure under the Dialog Global trade name name. It provides some other services like Internet Service Provider ( ISP ) through Dialog Internet, Mobile Satellite Service and Dialog SAT.

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Micro Environment Analysis

Strategic purpose:

Strategic purpose is about the organisation which it wants to accomplish its vision. It is a statement that stated in present footings of design for making desirable hereafter. Strategic purpose is about vision of company ‘s of what it wants to accomplish long term.

Strategic purpose of Dialog Telekom:

Strategic purpose of net incomes and procuring future growing via convergent engineering related concern lines will happen in the medium term through the new concern line seeded within DTL subordinates:

Dialog Broadband webs ( DBN ) – presently engaged in the physique out of a CDMA bases fixed WLL Network and WiMax engineering based Broadband Wireless Access substructure aimed at working the badly under-penetrated broadband cyberspace sector

Asset Media Group- late commenced a orbiter based wage telecasting services aiming the future net incomes potency of the similarity under-penetrated wage telecasting market.

Customer service dramas cardinal function none of the service supplier in the state follows the client service. Dialogue Telekom has dedicated staff for client services they initiate 150 service professionals ; with the company services that available 24X7 on-line support to the client.

Porter ‘s Value Chain Analysis:

Porter ‘s value concatenation theoretical account described five value bring forthing ‘primary activities ‘ , viz.

Inbound logistics:

Dialog Telekom manage widespread activities to Telekom concern demands. Logistics service in telecom sector is chiefly needed for substructure i.e web development. Dialog Telekom has broad scope of signals all over Srilanka. Servicess provided to clients comprises of inbound logistics.

Operationss:

Dialog Telekom has achieved trail in research & A ; development and new engineering their operations are gprs ( general package wireless service ) in 2001 one of the cardinal component of duologue telekom is 2.5G GSM is a major stock list & A ; major measure towards 3G, offering informations velocities which is higher than the usual, package based informations communicating, MMS multimedia messaging and many value added applications.

Outbound logistics:

Outbound logistics are several activities related with collection, bringing vehicle operation, hive awaying and physically administering the merchandise to purchasers, such as finished goods warehousing stuff handling, order processing and programming.

Hub or warehouse direction, choice and battalion of stuff, BOQ audit, stock list direction, IT Solutions: WMS, periodic stock list audits and freight direction.

Selling and gross revenues:

Activities associated with supplying a agency by which purchasers can buy the merchandise include advertisement, publicity, sales-force, citing, channel choice, channel dealingss, and pricing.

Service:

Customer service dramas cardinal function none of the service supplier in the state follows the client service. Dialogue Telekom has dedicated staff for client services they initiate 150 service professionals ; with the company services that available 24X7 on-line support to the client.

Competitive schemes

Dialog Telekom follows cost leading scheme & A ; distinction, they are the monetary value compositors they operate broad assortment of applications like value added services GPRS ( general package wireless service ) in 2001. one of the cardinal component of Dialog Telekom is 2.5G GSM is a major stock list & A ; major measure towards 3G, offering informations velocities which is higher than the usual, package based informations communicating, MMS multimedia messaging and many value added applications.

Customer service dramas cardinal function none of the service supplier in the state follows the client service. Dialogue Telekom has dedicated staff for client services they initiate 150 service professionals ; with the company services that available 24X7 on-line support to the client.

EXTERNAL ENVIRONMENT ANALYSIS:

PESTEL Analysis:

Political:

Even though Sri Lanka is really optimistic to the foreign investing policies it identified the importance of Liberalization in the early 1977 due to the bureaucratic attitudes which are inherited from the hapless administration and colonial part, from past two decades the terrorist activities remained changeless besides.

Economic:

The trade policy government and the unstable macroeconomic environment have negative impact on industry. There is gradual autumn of exchange rate over old ages. Inflation has reached to 20 % .

Socio -Cultural:

Social conditions in Sri Lanka is good infant mortality rate is low, life anticipation is long and literacy rate is high. It besides has trainable work force and educated.

Technological:

Sri Lanka depends on engineering transportation from FDI ( Foreign Direct Investments ) . Telecommunication Regulatory Commission of Sri Lanka ( TRCSL ) encourages the local research and development.

Legal:

The TRCSL is a regulative organic structure which takes up multidimensional function. TRCSL ensures the just enforcing of Government Policies, monitor the alteration in industry demands

PORTER ‘s FIVE FORCE Model:

THREATS OF NEW ENTRANTS:

The 5th Mobile operator Airtel India which is the largest Mobile operator got licence in Sri Lanka for nomadic operating. But as per TRCSL the licence for nomadic operating are non given to anyone who tried to come in Sri Lankan market which was created as an entry barrier to others who tried to come in the Sri Lankan market.

BARGAINING POWER OF Customers:

The clients or purchasers in Sri Lanka are non strong when compared with the purchasers or clients in Western states.

Dialog Telecom Company increased the Value Added Services to its clients so that they can maintain tied up between clients and providers.

BARGAINING POWER OF Suppliers:

The Bargaining power of Suppliers like peering spouses, content suppliers for Value Added Services ( VAS ) , upstream suppliers is high in Sri Lanka.

Dialog Telecom have providers from both local and international in assorted operations in which it perform like for web connectivity as the Dialog Telecom. It owned the MTT and operates as Dialog Broadband Network.

THREATS OF SUBSTITUTES PRODUCTS:

The telecommunication suppliers like Suntel, Lankabell and SLT are the replacement merchandises in Sri Lanka which provide connectivity without mobility that is it is for place use. But this is little market when compared with entire market.

COMPETITIVE RIVALRY WITH IN AN Industry:

The competition in Sri Lanka is high even though Dialog Telecom is different from other rivals because the merchandises and services provided by Dialog Telecom are different from other operators like it provides Value Added Services ( VAS ) to its clients. The diverseness of challengers is another factor which made company different from its rivals.

SWOT Analysis

Strengths:

The company has boosted its image in the investors ‘ assurance through portion monetary values.

Aggressive selling scheme that carried to every corner of the state builds a good and inactive Brand Equity.

Strong Relationship with a telecom giant Telekom Malaysia Group gives an advantage.

Dialog has a planetary range services such as Satellite Coverage and High Roaming, which are enabled by legion international coactions.

Dialogue has good established client base and covered breath of merchandise scope and client satisfaction.

Dialog Telecom today has one of the fastest turning subscriber webs among its rivals

Failings:

Lack of focal point for a broader market even though there is a high investing in selling and value add-on through proficient invention.

Head Office at Colombo had disturbed nature due to non-expandability of current location.

The entry of UAE ‘s Etisalat, a major portion holder of Tigo and the Bharti Airtel of India which operated Airtel Lanka trade name farther added to it woes.

Opportunities:

Sri Lanka shows uninterrupted development of the communicating industry.

Liberalization followed by an terminal to long standing belligerencies in the Northern Province would supply chances for greater web investings and increased subscriber growing.

Industrialists opine, the sale of Tigo could take to a new entrant or a greater consolidation which might in the long tally calm the monetary value war.

Menaces:

The entry of new operators in the game poses a challenge to Dialog Telekom. Additionally, the bing GSM Mobile operators are indulging in a cut pharynx competition at different magnitudes.

Turning affordability of nomadic services as a consequence of a lag in pricing would hold a negative impact on the take-up of fixed-line services. Further, the Telecommunications Regulatory Commission of Sri Lanka ‘s determination to impose revenue enhancement on fixed-line calls could see the SLT lose endorsers.

Lack of agreement within the opinion alliance, frequent cross-over ‘s between authorities and resistance benches in the Parliament threaten policy devising, transition of cardinal statute law and attempts, if any, at doing peace.

Meeting client outlooks occupies the top slot in the list of its precedences.

STRATEGIC ALTERNATIVES:

Strategic Intense competition across the telecom industry has had an impact on all participants, including Dialog Telekom. In an attempt to remain in front of the curve, Dialog decided to cut down its duties. This monetary value decrease, combined with lifting costs refering to aggressive advertisement and promotional runs, non to advert those associated with web roll-out and ascents, has caused the operator to describe negative feedbacks on its operational public presentation. In position of this, Dialog Telekom has stated that its chief focal point will be on cost direction, which requires a structural alteration. Consequently, many enterprises will be re-prioritized for better focal point and effectivity.

Corporate Scheme:

In position of its current public presentation and the SWOT analysis, the assorted strategic options would be as follows:

A comprehensive growing scheme to further spread out the operations of Dialog Telekom would be the first option. Incidentally, Dialog Telekom can follow the perpendicular growing scheme to avail the benefits of the Value Chain Convergence opportunities that exist in the Sri Lankan market.

Stability in its operations would be the 2nd option. In this context, Dialog Telekom can use the cautiousness scheme and have merely incremental advancement while the failings are overcome.

The first option could skid Dialog Telekom farther from the competition and make a monopoly in meeting industries of telecommunication, content, media and retail.The 2nd alternate provides Dialog and its employees the much needed external respiration infinite.

Business Scheme

The concern scheme options available for Dialog to heighten its place in the industry it operates would be as follows:

The first option would be to better on the current scheme of distinction. This could be done by holding alone value added services for each of its concern units – DBN, CBNSAT, and Dialog Telekom itself. It besides improves the client trueness and justifies bear downing moderately premium rates compared to its rivals.

Typically, the distinction scheme is more likely to bring forth net incomes than low cost schemes, although it involves higher investing.

Functional Scheme:

Most of the functional schemes are developed sing Dialog Telekom operations, hence can non be applied to its other units such as DBN and CBNSAT.

The selling scheme adopted by Dialog Telekom should be somewhat modified to concentrate on cost scheme. Newer bundles should be introduced to pull clients and retain bing clients every bit good.

The operational scheme of Dialog Telekom could be streamlined in order to hold an even more efficient and effectual operational capablenesss within its concern units.

With regard to Human Resource Management Strategy, Dialog Telekom should reexamine its plans and processs to accommodate the freshly stabilising corporate schemes.

Dialog Telekom is known for its quality inventions owing to its high accent on Research and Development work which in bend demands to be protected by patenting, right of first publications and other legislative agencies.

Decision and Recommendations:

Dailog telecom had remained as a giant in the Sri Lankan telecommunication by following differentiated scheme. It sustained its individuality with the execution of different strategic at all degrees which overcome its rivals. It ‘s Mission and Vision statement provides a clear committedness to its employees and supply an equal set of attitude at all degrees in the company. Dailog telecom adopted directional scheme which helped the company in growing, stableness and retrenchment. Overall its corporate scheme placed the company as the leader in the Sri Lankan telecom market. The directional and the portfolio scheme helped the company provides competitory advantage. The broad scope of portfolio provided by the company maintains trueness among its clients. Dailog telecom builds a span between its clients and providers due to which the clients benefited and it remains as a competitory advantage to the company. The entry for the new entrants ‘ had been made purely restricted by the authorities which made entry barriers hard for the new entrants. Due to this the company had to increase its fiscal public presentation and maintains long term sustainability. Dialog Telekom is known for its quality inventions owing to its high accent on Research and Development work which in bend demands to be protected by patenting, right of first publications and other legislative agencies eventually refering to be in front of rivals.

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