According to the evolution of
strategy the strategic management has diversified in to different levels which
can run their organization. Even though the spread of strategic management is
taken place but Lorange is strongly states that there are mainly three types of
strategies. They are Corporate Strategy, Business Strategy and Functional
Strategy. (P.Logange 1980) If the organization divides the strategies into
groups then only the business will develop and will survive in the market for a
the current performance, the Key Success Factors and the SWOT analysis the directional
strategy alternatives would be as follows. Growth strategy to expand the
activities of Dialog Telekom further would be the first alternative. Since the
current product lines have real growth potential concentration of resources on
those would be ideal. In concentration Dialog Telekom can follow the vertical
growth strategy to take the benefit of the value chain convergence opportunity
that is existing in Sri Lankan context.
strategy to continue with current activities without any changes to the
direction would be the second alternative. Here Dialog Telekom can utilize
pause/proceed with caution strategy to have only incremental improvements while
the weaknesses stated are overcome. It can use this time to stabilize the
organization due to the changes took place due to multiple strategies it
adopted earlier such as acquisitions and investing on innovative developments,
which will help to get back the loosing internal employee motivation.
first alternative will move Dialog Telekom further away from the competition
and create a monopoly temporarily for converged industries of
telecommunication, content & media and retail. However unfocused high-speed
growth to capture the market without stabilizing the existing acquisitions can
disassemble everything. The second alternative will give Dialog Telekom and its
employees much needed breathing space. The recommendation would be to implement
the second alternative initially to stabilize the organization without any
other drastic change in the direction. And after some time they can adopt their
long-term beneficial value chain convergence option depicted in first
business strategy alternatives available for Dialog Telekom to improve the
competitive position in the industries it operates would be as follows. The
first alternative for the competitive strategy would be to improve on the
current strategy of differentiation. It can improve this by having unique value
added services for each of its current strategic business units DBN, CBNSAT and
Dialog Telekom itself. This can improve the customer loyalty and thereby can
charge a reasonable premium rate than competitors.
second alternative which Dialog Telekom can try to implement is cost leadership
to overcome the threat of lower rates provided by competition, Mobitel. Since
the VAS are less in Mobitel the switching from Dialog to Mobitel is not much in
urban people who use these VASes. But people who are using purely as a
voice/SMS only are shifting as most of them are cost conscious and there is no
much of a different in coverage. Hence if Mobitel improves on its VASes it
would become a serious threat, at which stage it would be only the rates which
decides the attraction of that segment of the market.
the differentiation strategy is more likely to generate higher profits than
low-cost strategy. However differentiation strategy implementation may involve
higher investment than low cost strategy. Competitive scope is an important
factor when considering competitive strategies. The recommended alternative
depends on the competitive scope in this situation. Considering both
alternatives and there pros and cons of each, most ideal should be to have
culmination of both differing from the segment of the market. Dialog Telekom
should have a focused differentiation strategy in the market where people are
valuing the VASes and cost focus in the market where usage is purely for
Dialog Telekom should look at strategic alliances as a corporative strategy to gain
competitive advantage by working with other organizations. Currently they have
stated this with some banks and some supermarket chains as mentioned above.
However this can be vastly improved to include alliances with Insurance
Companies, Stock Brokers, and Popular Food Chains etc.
of these functional strategies are developed considering Dialog Telekom
operations, hence they cannot be applied directly to Dialog Telekom’s other
strategic business units like DBN and CBNSAT. Functional strategies based on
the strategic choice of corporate and business strategies should be as follows.
Marketing strategy currently followed by Dialog Telekom should be slightly
modified to accommodate the business strategy of cost focus. There should be
new packages to attract new customers as keeping existing customers who require
basic voice & SMS. This product/package development for the existing market
can be supported by improving the current “pull” marketing strategy
for advertising and promotion.
Telekom should not do any changes to their current financial strategy as they
are going to have pause/proceed stability corporate strategy. Hence they could
further improve their financial stability as there are no major growth
strategies to be implemented.
Telekom being a technological leader, R/Technology strategy is critical
for its performance. They should further improve R capabilities by having
strategic alliances with their major technology vendors. This is because most
of these vendors are the pioneers in developing latest technological
developments. This will be mutually beneficial to both the parties.
Operational strategy of Dialog Telekom should be streamlined to have a common,
more efficient and effective operations flow with all business units. This
requirement has arisen from the recent expansions and acquisitions. Also change
management would be required in creating a common culture among Dialog Telekom,
DBN and CBNSAT.
Human Resource Management strategy is another key functional strategy for
Dialog Telekom. It should review its programs and procedures to suit the new
stabilizing corporate strategy. It should improve on its current team based
working environment to self-managing work teams which is more suited for an
organization where rapid growth is anticipated in future.
current Information Systems strategy should also be changed to handle
enterprise ICT development in much more strategic level. The Information
Systems developed should be aligned with corporate and business level
objectives. And also there should be an integrated approach among business
units as much as possible.
from this Dialog Telekom should outsource certain operations such as legal,
IS/IT infrastructure support, Advertising, 1st level Call Centre operation etc
apart from the already outsourced operations like cleaning and transportation.
This is mainly because there is no major distinctive and/or core competencies
of Dialog Telekom in the above areas.
Telekom is known for its quality innovations due to their high emphasis on
Research & Development. However these precious research and their
development work needs to be protected by patents, copyrights and other
legislative means. Hence if applicable, Dialog Telekom should aggressively
follow these protective legislations.
Telekom has clearly defined vision, mission, corporate values and goals as given
To be the undisputed leader in the
provision of multi-sensory connectivity resulting always, in the empowerment
and enrichment of Sri Lankan Lives and Enterprises
To lead in the provision of technology
enabled connectivity touching multiple human sensors and faculties, through
committed adherence to customer driven, responsive and flexible business processes,
and through the delivery of quality service and leading edge technology
unparalleled by any other, spurred by an empowered set of dedicated individuals
who are driven by an irrepressible desire to work as one towards a common goal
in the truest sense of team spirit
commitment to our customers
& human centered leadership
to task & team work
concern for respect & care
deliverance of industry best return on investment to the shareholders of the
company, and financial market recognition as the highest valued mobile
communication operator in Sri Lanka. The deliverance of the best product in the
market place through leadership in customer service, product quality, provision
and adaptation to emerging technologies and convergence with the internet.
Achievement of leadership in terms of (economically) effective subscriber base,
brand recognition, consumer first choice and ownership of heart and mind share
of Sri Lankan consumers
achievement of leadership in term of management practices, internal strengths,
competitive resilience and quality of empowered resources, through adaptation
of best practices and the active pursuit in new business in which corporate
strengths could be exploited in the interest of growing the value of the
Core competencies can also be referred to as the strategic
capability of a business. Johnson, G., Scholes, K. and Whittington, R. describe
a core competency as the – Resources, activities and processes. Some will be
unique and provide competitive advantage (2008, p.9)
The Core Competencies of Dialog Axiata:
The characteristics of the core competencies include a specified source of the
competitive advantage, an application in wide markets, and most importantly the
difficulty in imitation (Barney, 1995). Dialog Axiata has its valuable core