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Executive Summary This report was prepared for the Chief executive officer for Axiata PLC as requested to analyze the internal and external environment and identify both external and internal factors shaping their competitive position which accounts for their success or failure in the market. This report is based on both primary and secondary information derived from Dialog Axiata PLC. The report gives a basic overview of Dialog Axiata PLC, its operations and performance. The external environment of Dialog Axiata has been analyzed using the PESTEL analysis where the political, legal, economical, ecological, social and demographical factors are analyzed to identify opportunities and threats in the external environment. Furthermore…show more content…
The 4.7% rate of Srilanka is quite healthy when compared to other Asian countries such as Vietnam facing the highest inflation rate (22.84%), Pakistan (11.47%), India (10.06%), etc. Furthermore Dialog being the market leader the inflation rate will have a minor effect on day to day operations but inflation rate should be monitored and taken into consideration when planning and developing the business in the long run. (Montary Policy Review, 2011) Refer appendix 2 Economic growth With the end of war economic numbers in 2010 was so upbeat it was expected that GDP per capita would double from $2399 in 2010 to $4800 by year 2015. The projected medium term economic growth rate is 8% per annum. (Refer appendix 3) The industrial sector recorded a growth rate of 8.4% while service sector recorded a growth rate of 8 percent. The telecommunications sector that has grown in the last years grew further by 15.6% in the first half of 2011. (Fiscal Management Report, 2011) This shows that government had made a wave of economic resurgence. This resurgence is sustainable for Dialog Axiata PlC for their future. Revenue Growth Mobile service providers are facing number of challenges in relation to growing revenues. The major challenge is that the voice and connectivity business is becoming a mature which has subjected to price deflations and negative market growth rate which has led to
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