External Analysis for Dialog Telekom Sri Lanka

5980 words 24 pages

Executive Summary 2 Company Background 3 Issues Faced 6 Competitor Analysis 7 Porters Five Force Model 9 PEST Analysis 13 Factors responsible for Dialog’s Decline 16 Strategies 19 Strategies implemented by Dialog 20 SWOT Analysis 23 Conclusion 25 Reference 26

Executive Summary

Dialog Telekom PLC is a Malaysian based MNC functioning in Sri Lanka. It has been the market leader in the telecommunication industry up to the year 2007. But the company incurred huge losses in the year 2008 & 2009 and this as a result of this the company’s market reputation and image declined. The Annual reports of the company showed that their financials were widely fluctuating and with the increase in the number of
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4. Dialog Global: - Dialog global is the international arm of dialog. It provides international services with roaming coverage of 200 destinations internationally over 530 networks. 5. Dialog Tele-Infrastructure (DTI):- DTI provides telecommunication infrastructure. It provides state of the art transmission facilities to licensed operators.

Issues Faced

Dialog Telecom Plc was performing well and was the market leader in the industry up to the year 2007. The company incurred huge losses in the year 2008 and 2009. As a consequence of this the market reputation and the corporate image of the company declined dramatically. More and more companies were entering into the mobile industry and Dialog was facing intense competition from them. This aggressive competition in the market led to Dialog Telekom dropping their market share to 53% of the total subscribers in the fiscal year 2007 from 57% and 63% in the years 2006 and 2005 respectively. The year 2008 was marked by the global financial crisis and the GDP growth rate of Sri Lanka was 6% which indicated a slow economic growth. The inflation rate of the country peaked at 28.2% in the June 2008. The war situation in the country has also been escalating from the year 2006 to until the beginning of the year 2009. The Rupee value kept fluctuating and affected many foreign exchange exposures. All this factors were affecting