PD Karunaratne Reg.

No: 121428368

MBA in HRM Programme - 2022/23

121428368

OSP 9336

To : PD Karunarathne
No.124/2,Nidhanawaththa
Illukwaththa,
Pilimathalawa.

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The Open University of Sri Lanka

Strategic Management (OSP 9336)
Assignment

The telecommunication industry and the SLT MOBITEL

The telecommunications sector consists of companies that transmit data in words, voice, audio, or video
across the globe. Telecom equipment, telecom services, and wireless communication are the three basic
sub-sectors of telecommunications.

As per the telecommunication regulatory commission Sri Lanka there are four licensed mobile service
providers in Sri Lanka. Hutchison telecommunication PVT LTD. Dialog exiata PLC, Mobitel (PVT)LTD,
and Bharti Airtel company. The current major fixed line providers in Sri Lanka are Sri Lanka
Telecom (SLT), Dialog and Lanka Bell.

SLT -Mobitel is a public limited company in telecommunication industry. Founded in 1986, One
largest company in Sri Lanka. Products Fixed line telephone services, mobile telephone services,
Internet service with dedicated speed link, IPTV and IT services

Owners are Sri Lankan government 49.50%, Maxis communication 44.98% and balance shares
remain with general public.

Companies vision is

“ALL SRI LANKNS SEAMLESSLY CONNCTED WITH WORLD -CLASS INFORMATION”

The company have over 10000 workers, over 9 million customer base, over 60000 km of fiber network
and paid 17.06 billion taxes to the government in last year.

SLT Sri Lanka Telecom group consist of Mobitel 100% E channeling 87.59%Mobit technologies100%
SLT Visioncom100 % human capital solutions 100%SLT property management100% subsidiary
companies’ ownership.

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SWOT analysis for SLT MOBITEL

SWOT is a basic straight forward model that access what an organization Can and cannot As
well as its potential opportunities and threats.

SWOT ANALISIS for SLT

strength weaknesses

1. customer loyalty, high level of 1. SLT hire other companies

customer satisfaction (commission base), do not provide
2. Wide range of goods and services quality services to customer
3. Qualified staff 2. high prices of small plans
4. High level of technology 3. customer late delivery
development 4. huge cost for services provides
5. Low employee turnover 5. poor complaint handling
6. Wide customer base 6. poor customer service
7. Automation of activities
8. Strong infrastructure and rich
Network coverage
9. Financial stability
10. Awarded and certified and stronger
brand image

opportunities threats

1. technological development of the

country 1. Connections are disconnected and
2. Due to the covid 19 pandemic down grading due to high inflation
society getting more use to social level of the country
media and other entertainment 2. government regulation and
devices increasing of taxes
3. Limitation of transport and Work 3. highly competitive market
from home concept 4. increasing of labor costs
4. Expansion of online education and 5. unable to pay for foreign programs
online foreign jobs via internet due foreign currency issue
5. Government ownership

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Using Michael Porters industry analysis model identify the industry

attractiveness for business expansions.

Michael Porter’s 5 forces Analysis for SLT attractiveness for business expansion

It is very important that not take a superficial look at the industry. need to dig deeper. People who
sees the deep in, can build competitive businesses.

➢ Treats of new entrance to industry

SLT MOBITEL will face low treats by new entrances as due to strict regulations for telecommunication in
Sri Lanka. SLT MOBITEL consist of Sri Lankas largest fiber network. If a new entrée has come to the

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industry, the new company should spend lot on data communication. new entrees will face exchange rate
fluctuation. Countries inflation rate continuously increasing and there re no positive situation of new
industry

➢ Bargaining power of supplies

SLT MOBITEL will face medium level of bargaining power of the suppliers. Due to increasing exchange
rates, taxes and high reputation of service providers and brand owners the company will unable to face the
situation: PEO TV foreign channels as & flex, discovery have stopped their broadcasting with Telecom due
to late payment of USD.

➢ Bargaining power of customer

SLT MOBITEL face medium threat in industry, as customer seek high quality service, new technology,
new products for low prices. So, the price and service should be outstanding within other product at the
industry. satellite tv service industry has two major products call PEO TV By SLT MOBITEL and DIOLOG
TV by Dialog exiata. SLT PEO TV use their fiber network to distribute HD TV channels. DIOLOG TV
channels distribute without fiber lines and Bad weather makes it difficult to provide quality services.

➢ Competitor rivalry

Competitor focus on new methods to attract more customers increase market share. For SLT mobile while
the market share is 22.6% the main competitor (Dialog) has marker share over 57%. Also, the TV industry
Facilities are different. With PEO TV you get 48 hours of rewind TV facility so you can catch up what you
have missed out. Recently, Dialog TV has also introduced 72-hour rewind facility with their ViU HUB.
Customer can watch any program that you may have missed, up to 3 days later

➢ Treats of substitute

occurs when companies within one industry are forced to compete with industries producing
substitute products or services SLT MOBITEL face medium treat with substitute services. It can be
reduced by service excellence, affordable product prices, and packages.

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Using a TOWS matrix and Grand Strategy matrix identify to suitable

strategies for the company.

TOWS matrix

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1. Strength-opportunities strategies

company use their strong infrastructure and wide network coverage strength can apply with expansion of
online education and work from home concept. With that strategy company can maximize the services
they provide and increase income. match with market development in grand strategy matrix

2. Strength -threats strategies

Wide range of products can apply minimize the high competitiveness of the market, and market share can
increase -market penetration in grand strategy matrix

3. Weaknesses- opportunity strategies

Within limited transport and progress on working from home concept can be used to minimize the company
weakness of high cost for new connection (down payment) by signing agreement with corporate sector
introducing new packages discounted rates and company can encourage new connections with bonus data
bundles -related diversification strategy in grand strategy matrix

4. Weakness-threats strategies

Treats of high rate of disconnection and down grading of packages due to high inflation level of the country,
the company can introduce Re -joining campaigns for discounted price and new connections for reduced
rate. Can encourage with month or two free data or free channel facilities - retrenchment in grand strategy
matrix

Can the strategy selected be justified with the Ansoff matrix? Give
reasons.

Some strategies in Ansoff matrix, can justify with the TOWS matrix and GRAND STRATAGY matrix,
prepared for the SLT SWOT analysis in question number one. The Ansoff Matrix (sometimes referred to
as the Strategic Opportunity Matrix) is a strategic planning framework to help businesses develop and
decide upon strategies for their growth. It's designed to effectively provide four strategic options and
highlight the levels of risk associated to those for the business.

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Ansoff matrix

Each box of the Matrix corresponds to a specific growth strategy. They are:

1. Market Penetration – The concept of increasing sales of existing products into an existing market
2. Market Development – Focuses on selling existing products into new markets
3. Product Development – Focuses on introducing new products to an existing market
4. Diversification – The concept of entering a new market with altogether new products

In Ansoff matrix Market development used to increase sales of existing products in to existing market.it
can be found in grand strategy matrix and tows matrix as Strength-opportunities strategy in SLT that chosen
to wide network coverage strength can apply with expansion of online education and work from home
concept

A market penetration strategy is when companies aim to sell more to the existing customer base and
increase their market share in Ansoff matrix.it can match with Strength -threats strategies in TOWS matrix
and grand strategy matrix strategies

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Weaknesses- opportunity strategies described in TOWS matrix in question number four can be match with
the concept of entering a new market with altogether new products in Ansoff matrix as Diversification.
When it comes to weakness -threat strategy, we have selected retrenchment as a result of high inflation in
country, disconnection and package down grading increasing and company facing danger in situation. In
Ansoff matrix there is no strategy for the above situation.

Thus, first three situations can justify with Ansoff matrix and the weakness -threat strategy in TOWS
strategy and retrenchment strategy in Grand strategy matrix cannot be match or justify with the Ansoff’s
matrix.

State your recommendations to the senior management of the

company including a brief action plan for implementation.

Using TOWS, GRAND STRATAGY and ANSOFF matrix company will gain insight into feasible
strategies, which can be mapped out in the quadrants in order of attractiveness. The eventual goal is to
choose a fitting strategy that fits the company's market and its competitive position.

Recommendations of implementation of four strategies discussed above

• Introduce new packages for online education and online job concept
• Develop wide rang of products to fit with competitors
• Implement re- joining campaign for discounted rate and introduce interesting offers to new
joiners
• To develop working from home concept, introduce new cooperate packages with government and
private offices for discounted rate.

An Action Plan is a list of tasks that to complete a simple project or objective. To draw one up, simply list
the tasks that need to complete to deliver project or objective, in the order to complete them. Create an
action plan to help achieve goal by following these five steps:
• Set SMART goals.
• Create a list of actions.
• Set a timeline.
• Designate resources.
• Monitor the progress.

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Brief action plan to implement discussed four stratagies

SLT MOBITEL -ACTION PLAN for 2022\2023

Task\strategy Task Starting Ending Budget Estimated income

owner\dep time time

Introduction of new Marketing 2022 June 2022 3 million for 15 million

packages to online department 01 December advertising
education and online and 31
jobs marketing 2 million for
manager software
development

Develop New Marketing 2022 July 2023 5 million for 20 million

product and services department 01 January 31 advertising and
that fit with all kind and implementation
of income earners in strategies 3 million for
Sri Lanka management software and
department product
assembling
Promotion campaign Marketing 2022 2023 2 million for 4 million
for encouraging re- department august 01 February repair old
joiners and package 28 equipment
remapping
Introducing new Marketing 2022 2023 march 5 million for 50 million
corporate packages department September 31 installation and
to working from and strategic 01 equipment
home concept planning 3 million for
department advertising

By studying the environmental, social, and economic potential of a certain institution, it is

possible to identify the abilities, weaknesses, and strengths of that institution, and by referring
them to various matrix, successful strategies can be identified. By implement above action plan
correctly SLT MOBITEL can highly minimize their weaknesses and reduce pressure from the
economical crisis. Company will survive in market without any threats.

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………………………………………………………………………………………………….

References: -
1 YouTube video on ‘keynote on Strategy by Michael Porter, Harvard Business School’ arthsastra, done
in India.

https://www.youtube.com/watch?v=EvvnoNAUPS0&t=563s

2 Strength, Weakness, Opportunity, and Threat (SWOT) Analysis by Kelton.W

https://www.investopedia.com/terms/s/swot.asp#:~:text=lack%20of%20capital.-
,Opportunities,increasing%20sales%20and%20market%20share.

3 Ansoff Matrix the Product/Market Expansion Grid By Peterdy.K

https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
4 Sri Lanka Telecom PLC Annual Report – 2021
https://www.slt.lk/sites/default/files/sustainability_reports/AR -2021-Final.pdf

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