External Analysis for Dialog Telekom Sri Lanka

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Contents 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…show more content…
108 | Rs. 109 | Rs. 113 | GDP growth | 7.7% | 6.8% | 6% | Source: Central Bank of Sri Lanka Annual Report 2008 “The year 2008 in terms of business outcomes was disappointing in the context and aftermath of a decade long and uninterrupted trend of robust profitability. A loss of Rs. 2.88 Bn. in 2008 as compared with a profit in the previous year of Rs.8.91 Bn. requires a contextual analysis” (Dr. Wijayasuriya, Dialog Annual Report 2008:17) Competitor Analysis At present the Sri Lankan mobile telecommunication industry comprises of 5 companies i.e. Dialog, Etisalat, Mobitel, Airtel and Hutch. The competition between the local mobile operators has intensified over the last two years. The mobile market in Sri Lanka has been functioning with a healthy annual growth rate for some years. However, Sri Lanka’s mobile penetration is low when compared to other developed countries in Asia. But it can be seen that Sri Lanka posses some of the most sophisticated technology which are at par with many developed countries of the world. Many new players have entered the industry and have found their own niches in the telecom sector. The competition between these companies has been growing stiff. The end of the war has also provided plenty of new opportunities for the mobile

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