This is the report which is conducted to analyze about strategic adoption of a leading mobile services industry according to the markets which they drive into and a value chain analysis in order to accomplish competitive advantage.
Introduction of the Company
Sri Lanka Telecom Mobitel is Sri Lanka’s National Mobile services provider. SLT Mobitel has a 24% market share, which makes it the second largest Mobile Operator in Sri Lanka with 2.7 million connections. Since being acquired by Sri Lanka Telecom in 2002, it has grown in leaps and bounds and is now on par technologically with the very latest in the Sri Lankan mobile services industry.
Sri Lanka Telecom Mobitel, stride ahead towards realizing its vision of developing Sri Lanka into an Info-com and Knowledge Rich Society. SLT Mobitel expands its services by offering fastest Mobile Broadband service in Sri Lanka.
Strategy of SLT Mobitel
A big success factor was how apparitional over tone in brands in imagery stayed, even though price wars had started, the color green was the seminal attribute; the brands slogan was “We care always”.
Real competition and choice in mobile network communication means a diverse range of devices that meet the needs of rich and poor alike. Currently following by SLT Mobitel slightly modified to accommodate the business strategy of cost focus. They introduces new packages to attract new customers as keeping existing customers who require low cost of charges. SLT Mobitel recognized how technology aids businesses streamline processes and trim down costs. In its own technology environment, It had an higher technology network that was expensive to maintain and to grow but in considering with new partnership with ICT providers it was attracted to the solution for its high-availability architecture and range of storage options, but during the channel it discovered additional benefits. With that availability, SLT Mobitel supposes to reduce hardware costs and administration and to offer an improved user experience and reduced prices.
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Even though having adverse macro conditions denoted shows the mobile phone services sector in general recorded modest growth levels, but oligopolistic conditions within the mobile phone services sector induce prices in support of the consumers making SLT Mobitel one of the lowest in call charges in the county which is having tough competitors in the firm such as Dialog, Etisalat, Airtel and Hutch.
The force of competition in all forms despite increases in market penetration affected the profit growth trend experienced by the mobile phone services sector. Some industry players were bound to adjust, restore and cut back on their businesses in the face of the changing industry setting, but Sri Lanka Telecom Mobitel, drive by the response and results of its investments in latest technology, processes and products pursuit and getting forward, building in the process new market spaces and grabbing new opportunities.
Low Cost Provider
From analyzing environmental factors and denoted information developed five conditions that illustrate possible strength of SLT Mobitel to be a low cost provider, such as cease war, Customer perception and trend, economy crisis and inflation, advanced technology and competition.
Based on end of cease war it turned to an opportunity to expand their geographical area, SLT the parent company of SLT Mobitel has the network connection at northeast area so it is strength to position their network services at there. And operating their services under SLT it reduces their operation services and network infrastructure services. Likewise advanced technology, growing up advanced technology helping SLT Mobitel to reduced administration cost and operating support system (customization, E-banking E-reloading) and enabling facility 3.5G technology as per the customer trend also aid to increase the sales even though it would get high expenses for maintain and facilitate having a partnership with ICT communication it helps to reduced the operation cost.
As like it due to the economic crisis inflation was arise to overcome from this critical defenses company undertaking partnership and contract with ICT communication providers for a certain period and also they have undertaken contract as an official sponsor for Sri Lankan Cricket team their brand image confer this prospect. And competition is arising in this sector, but SLT Mobitel has their brand image as well as they are providing high technology (3.5G) enabling to getting forward.
Furthermore they are adopting several strategies to gain competitive advantage with their fortitude as mentioned above.
upright of their parent company – After the seas war it turned to be an opportunity to expand SLT Mobitel to North East , SLT Mobitel has the advanced technology and resources in order to expand their market and also Sri Lanka Telecom Mobitel continuous to benefit from the reputation and strength of its parent, it is gaining the knowledge, experience, infrastructure, resources from its parent company specially North East they are having their network infrastructure under SLT because users capacity is very less comparably to the other parts.SLT Mobitel facilitate their network services under the roof their parent company which helps them to reduce the operation cost.
Reduced employees from online facilities and value added services from using e-commerce – SLT Mobitel spend 19.78% that is 6,090 mn for employees’ Salaries, wages & other benefits on 2008, but for the previous year they have spend 4,956 mn that is 17% for wages and salaries from reducing the employees by improving technology and reducing unwanted services s lines. SLT Mobitel seeks to minimize costs by and Billing Support System that is providing services via online. These Infrastructures are supporting to cutting off the unwanted services lines.
And also they are putting each employee on the track of continuous learning, optimizing each one’s value and worth and helping him or her build a long-term career with the company,
On line material requirements planning – SLT Mobitel is a telecommunications service provider it depend on a variety of suppliers and a complex inventory of products and services to run this side of our business successfully. Potential threats in this area include supplier delays or defaults, inadequacies in inventory and product obsolescence. Uncertainties on the demand side could result in either shortages or overstocking. This risk is managed through the use of On-line Material Requirement Planning and Forecasting Software as well as through inventory buffering.
New partnership – Under the new partnership, Mobitel with support of Sony will develop, deploy and manage a nationwide NFC platform that is utilizing and based on “FeliCa” contactless IC communication technology and that could facilitate various utility sector and consumer applications here in Sri Lanka.
It is exciting for Mobitel to partner with Micromax, an innovative mobile handset company that is becoming a power to reckon with. We share a mutual passion for creating value to our customers through innovative offerings and we are confident that this partnership brings unparalled choice to all mobile subscribers.
Micromax partners Sri Lanka Telecom Mobitel to offer a choice of Exclusive Value Packs to customers. The National mobile Service provider brings forth its element of ‘care’ through yet another innovative endeavor.
Reduced administration cost -Company has facilities located over a multi-geographical area typically use of rooftops as a place to upright of their parent company, and also they are not facilitating services branches for every place, they locating place in certain places and SLT services building from providing services at supermarket and banks they are reducing their administration cost.
Rooftops as a place to upright of their parent company
Operating Support System
Reducing administration cost
Online material requirements planning
Figure: 2.1, Low Cost Provider
Value Chain Analysis
Value Chain model is the experience proved to be one of the most valuable tool the major benefits of developing a realistic and sound Value Chain that reflects to the business dynamics. Offer chance to optimize and/or reduce investment where it really makes sense .It is a systematic approach to examining the development of competitive advantage. The chain consists of a series of activities that create and build value. The organization is split into ‘primary activities’ and ‘support activities.
Figure: 3.1 Value Chain
Wide network coverage as they own their network infrastructure.
Mobile net work software
Network integration – network equipment for coverage and signal strength
Capacity and coverage management
Production based support activities
Prepaid & post paid packages
3G capable handset
Innovative packages that they offer are all designed carefully, with the customer’s best interest at heart – SMART prepaid, Upahara and Double M post paid packages.
Marketing & Sales
Strong channel distribution- Involve in communicating and provide regional/local support for marketing activities.
Market innovators – Develop and drive business opportunities and sales leads to achieve the targeted business objectives
Trend setters – analyzing and producing various marketing materials from coordinate with internal/ external activities.
Unique advertising strategy – Emotional values
Promotion campaigns – doing promotional activities during the festivals and offer facilities and packages to lower cost.
SLT Mobitel became the official sponsor of the Sri Lankan Cricket team- Considers sponsoring Sri Lanka Cricket as a strategic investment in its brand building endeavor.
Customer services with free of charge
Billing payments via supermarkets
E-channeling, SMS banking, CNN breaking news
close integration, worthwhile relationship, thrives on deep respect, morals and ethics of the highest order, recognition
IT skilled workforce, Telecom engineers, SCM specialists, Customer service & Telesales training, Franchisee Management, employees in mobile services, owned retail staffing & training. Grievances committee forum.
HR Division had in place a system to address key issues, while a cross-functional team of management and union representatives seeks to improve relationships and address problems.
And functioning Education unit: instructing and explaining Company policy and plans to union representatives and employees so as to improve understanding and cooperate
Creating a 3G enabled network, 3.5G service as well as their flagship experience centre.
Networking equipment for coverage and signal strength – Operates a GSM/GPRS/EDGE/UMTS/HSPA network utilizing 3.5G technology(n December 2007 Sri Lanka Telecom Mobitel launched M3, its 3.5G High Speed Packet Access (HSPA) technology based service capable of 14.4Mbps on downlink and up to 1.98Mbps on uplink..
IT infrastructure enabling to acquire network.
Established a GSM services to acquire networking & Telecom tools,
Operating resources – That are company purchases to enable its operations. It comprises a wide variety of goods and services, from standardized low value items like office supplies and to complex and costly products and services like heavy equipment and consulting services
3.1 Differentiation Strategy
Oligopolistic conditions within the mobile phone services t sector compel prices in support of the consumers making. SLT Mobitel one of the lowest in call charges in the county which is having tough competitors in the firm such as Dialog, Etisalat, Airtel and Hutch. As oligopolistic competition the nature of the product seems to be the same but they can be differentiated through the following ways.
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“Mobitel has broad experience of innovative mobile services competition is increasing the variety of services on offer. In order to attract or to hold consumers they do some differentiation by changing some slight modification in their value chain activities. Through services differentiation, an operator will tend to offer more services, designing innovative pricing packages, through operation they using verity of technologies and network infrastructure development.
The desire to provide innovative services and products includes a commitment to using smarter technology that offers greater coverage, brings more applications, provides better quality, uses less power, and requires fewer resources to operate in.
Use it as mTune or dedicate it to anyone, Karaoke on mobile only from Mobitel.
Call friend and press (star) key when hear the mTune.
Within seconds that mTune will be yours!
Reload through Banks (E-Reload) through HNB, Sampath, Commercial and HSBC
SMART 5 – the Company introduced its revolutionary prepaid product SMART 5 in March 2006. Driven by a strategy evolved around value innovation and with the threefold objective of appreciably strengthening the renewed brand perception, maximize asset utilization and becoming a formidable player in the prepaid segment, SMART 5 has been a great success and the imitation of the product characteristics and style by the competition in their own campaigns is testimony to the SMART 5 success.
UPAHARA Postpaid package – SLT Mobitel created history in Sri Lanka by introducing the UPAHARA Postpaid package designed specifically with State Sector Employees and Pensioners in mind.
The demand for the UPAHARA Postpaid package has been overwhelming, according to the statement it shows that more than 500,000 Post-paid subscribers registered for the service within the first four months of the launch of the package.
In keeping with their promise “We care Always” SLT Mobitel will always innovate to bring in services that are more relevant for the customer and at the same time easily accessible need to be able to accelerate time-to-market for these innovative services and minimize the cost of bringing such services to market given their potential for a short lifespan.
SLT Mobitel having their network coverage upright from the SLT at North East regions, but in other parts they are operation in their own infrastructure. If SLT Mobitel would share the Sri Lanka telecom towers in other parts it can earn more and cover additional expenditure.
SLT Mobitel network have an advanced technology it has led to significant changes in the structure of the organization as look to reduced cost which is hard to maintain and expensive but with their partnership with advanced technology provider it could able to manage those expenses and also with cutting off wastages and un necessary expenses such as storage availability, administration and infrastructure.
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