Table of Contents

Executive Summary.....................................................................................................................................2
About Sri Lanka Telecom............................................................................................................................3
Industry evaluation......................................................................................................................................3
Porter five forces:........................................................................................................................................5
Threat of latest entrant.............................................................................................................................5
The bargaining power of consumers........................................................................................................6
SWOT analysis tool.....................................................................................................................................8
Strength...................................................................................................................................................8
SWOT version.........................................................................................................................................8
Strengths:.................................................................................................................................................9
Weakness:................................................................................................................................................9
Opportunities:..........................................................................................................................................9
Threats:..................................................................................................................................................10
Recommendation.......................................................................................................................................10
Conclusion.................................................................................................................................................11

Executive Summary
Strategic Management is defined as set of got motion and conclusions that enables in shaping the
long-run typical overall performance of the commercial company. Its far at the side of
environmental scanning, each inner and out of doors surroundings, and approach method,
implementation of strategies, assessment and control techniques. Henceforth, strategic
manipulate highlights at the evaluation and monitoring of the outside threats and possibilities
within the heritage of business agency's inner potencies and weaknesses

About Sri Lanka Telecom

Sri Lanka Telecom PLC. (SLTL) is considered one of Sri Lankas maximum valuable blue chip
agencies with a market capitalization which, as at 31st December 2015 topped Rs.eighty four
billion. Sri Lanka Telecom is the country wide ICT solutions provider and the leading broadband
and determination infrastructure offerings issuer within the United States. The 2 most important
shareholders of Sri Lanka Telecom as at yr. cease were the authorities of Sri Lanka which held
49.5% through the Secretary to the Treasury and global Telecom Holdings N.V. of Curacao,
which owned a 44.98% stake. The stability shares are publicly traded. The organization has been
provided a national long time rating of AAA (lake) and a BB- score on long term nearby
currency and overseas fore by way of Fitch scores, observed by using B+ neighborhood and
overseas currency credit ratings by means of standard & terrible.
The SLT organization has a client base of over six million such as multinational organizations,
large and small corporate, public zone, retail and domestic customers. The SLT group affords a
complete range of ICT centers and services in the areas of voice, data, broadband, wholesale,
business enterprise, television and cellular services.

Industry evaluation
What is enterprise competitiveness and what are its characteristics, what is high competitive
enterprise, what takes place while dealing with high aggressive industry
"The company's proximate environment is its enterprise surroundings; for this reason the focal
point of our environmental analysis could be enterprise analysis." (Furnish, 2010, p. 67).
Furnish (2010) relates industry evaluation to each company and enterprise strategies. Company
approach to decide which enterprise the firm to perform and allocate it resources accordingly that
needs deep take a look at for the industry profitability degree that itself depends at the
completive intensity.

Enterprise method is to work to gain completive advantages by means of studying the clients'
specification and locate the exceptional manner to fulfill their desires.
The environment of the firm includes all outside elements that have impact on its strategy. As in
keeping with PESTEL evaluation, environmental effects are grouped into political, reasonablypriced, social, technological, prison and environmental forces. The primary purpose of the
external environmental analysis is to decide the maximum related forces that impact the
company to be considered correctly at some stage in the strategy choice. The contribution of
outside environment analysis is to assist the employer to generate income and to achieve this
firm need to recognize its clients, suppliers and the completion intensity.
"The core of the company's commercial enterprise surroundings is fashioned by its relationships
with 3 sets of gamers: clients, suppliers, and competition. This is its industry surroundings."
(Provide, 2010, sixty eight). Enterprise analysis begins with the choice approximately the service
or product and the markets, talents and businesses exist inside the industry. Industry analysis will
have a major effect at the competitive where each enterprise has its own traits which have the
main contribution at the corporations to enter/exit or maintain within the enterprise. Two
principal areas need to be considered for enterprise evaluation; company's external surroundings
(macro-surroundings) and organization's inner environment (micro-environment)
Successful strategy for enterprise evaluation ought to begin from a predefined long time goals
that could recognize the surroundings factors alongside the to be had capabilities and sources
followed via effective implementation. As a fashionable method, the company ought to align its
characteristics and be regular with the external surroundings.
In beyond, the economic system became prepared around the organization whereas these days,
the financial system is organized across the market. Its far required for any company to apply
some strategic evaluation gear to observe the enterprise and its marketplace. Examples for these
tools are SWOT analysis, PEST analysis, Porter's five forces analysis, four nook's analysis, aid
primarily based view and price chain evaluation.
The SWOT analysis is one of the famous tools to study and examine the inner organizations
strengths and weaknesses, and the outside opportunities and threats. It belongs to the layout
strategy school.

Pest analysis give attention to 4 elements; political, monetary, social and technological. This
enables the company to understand the forces in macro environment and the opportunities and
threats they may confront. The PEST evaluation is recommended to be performed before SWOT
evaluation if both could be used noting the truth that PEST is used possibly for market analysis.
Porter's 5 forces equipment is one of the most well-known equipment for aggressive position
analysis. It analyzes the micro environment forces from out of doors-within the business using 5
competitive forces. "understanding the aggressive forces, and their underlying causes, famous
the roots of an industry's modern-day profitability at the same time as offering a framework for
looking ahead to and influencing competition (and profitability) through the years ", (Porter,
2008, P. 80). it's far to be stated that Porter's 5 forces device belongs to positioning faculty which
concentrates on the industry evaluation as a key success for the company.

Porter five forces:

Porter (2008) argues that whatever the enterprise is the structure of the forces that affect the firm
are 5 forces; hazard of latest entrants, the bargaining electricity of buyers, the bargaining power
of suppliers, the threat of substitute merchandise and competition with competition. Those forces
will affect the firm role and the decide its profitability stage, "enterprise shape drives opposition
and profitability". (Porter, 2008, p. 80). The profitability will lower if the opposition is high.
Its far critical to understand the primary force that affecting the company to plan direction of
movement to confront its energy to enter the enterprise, keep and maintain the specified function.
The following sections will speak the 5 forces at the telecom industry in Sri Lanka and how they
may affect the firm selection:

Threat of latest entrant

How it'll affect the present marketplace? What are the obstacles for new entrants to be taken into
consideration?
Issues to be considered whilst analyzing the hazard of new entrant. The first one is the effect on
marketplace: "whilst the risk is excessive, incumbents should keep down their prices or improve

investment to discourage new competition". (Porter, 2008, p. 81). The second problem is the
obstacles that new entrant has to face and his strategy could be shaped for this reason. "If access
obstacles are low and novices assume little retaliation from the entrenched competition, the
hazard of access is high and enterprise profitability is moderated". (Porter, 2008, eighty one).
The main access barriers in Sri Lank telecom marketplace are the subsequent:

high License costs,

excessive infrastructure setup cost,
speedy technology change,
purchaser switching value may be very low, and
Smooth get right of entry to the distribution channels.

The bargaining power of consumers

The power of the shoppers is one of the Porter's 5 forces version to research the competitive
blessings and it represents how a great deal this strength is influencing the firm via asking for
decrease expenses, enhancing the services and enhancing the product quality.
Applying this force on Sri Lank telecom marketplace, the subsequent points are to be considered:

loss of differentiation amongst products or services,

Low switching costs specifically after introducing the idea of cell variety portability, and
Buyer has complete data.
From the above, it's far apparent the bargaining strength is highly high.
The bargaining energy of providers

This pressure analyzes the providers' electricity at the industry that the company is working. It
may have an effect on the enterprise by way of increasing the expenses and reduce the fine of
services or products. As this electricity will increase the profitability of the firm is affected. In
Telecom market in popular and in Sri Lank market, this power is low.
Offer the equal services. That is the deal with of replacement products in which the synthetic
provides the identical characteristic as alternative for the original product.
The subsequent elements will determine the extent of this risk:

The satisfactory supplied by means of an alternative,

The purchaser's willingness to trade,

The costs for the bogus, and

The switching price.

The quality supplied via VOIP (Voice Over internet Protocol) services isn't assured in
comparison to the pleasant provided by using Telecom devices even though the costs are better
nonetheless the customers favor to get related some distance from the VOIP. the new On the
other aspect, new ways of Telecom inclusive of new approaches of chatting over BB messenger
are accommodated and emerged by using the issuer in their providing so Sri Lank culture
nonetheless keep with the high communication device considering the not guaranteed best by
VOIP as alternative product and evaluating the high-quality supplied to the cell conversation
gear and The effect of this force on Sri Lank telecom industry is low.

contention amongst current competition

unique industries, have special competition levels
critical analysis of 5 Forces

The version is treating the marketplace structure as static at the same time as the competitive
surroundings isn't and it isn't thinking about the dynamic in contemporary industry in which the
development and improvements are very high (Kippenberger, 1998; Haberberg and Rieple,
2001).
Moreover, the version is layout at the concept of competition. It presumes that the company
desires to obtain competitive advantages over different organizations in the marketplace, as well
as over providers or consumers ignoring some uploading techniques along with "strategic
alliances" or other (Ink pen, 1998). Are providers or shoppers threats to an organization?
In addition, the version equates buyers with the dealers. Are not clients more critical and
advertising and marketing is moving towards carrier and dating advertising and marketing.
One foremost trouble is the reality that the version isn't thinking about the human sources and
their competencies and competencies as key achievement elements for any business enterprise.
Finally, the version misses 3 new forces: deregulation, digitalization and internationalization.

SWOT analysis tool

Strength
SWOT technique is a device utilized in strategic and industry analysis to take a look at business
units, new merchandise or an investment opportunity. It allows the corporation on choice making
to assist the access of latest industry or marketplace by analyzing the firm's inner surroundings
and the internal environment in which the firm will function (Smith, 2006).
The idea of SWOT analysis is to determine out the perfect factors as a way to have an effect on
the performance of the employer to achieve its goal. These elements are inner; Strengths and
Weaknesses and outside; opportunities and Threats.
SWOT version
The version is an easy device that includes creating a fixed of tick list which contains strengths,
weaknesses, possibilities and threats that assist the company to take choice approximately the
targeted industry or marketplace.
Strengths deal with the ones elements of the industry or the market that allows the organization
to gain its goals and sustain to make profits. Weaknesses can be described as the ones additives
that placed the company at chance now or within the long term. Possibilities are those
modifications on the outside environment that can provide blessings over different players in the
market along with change inside the era. Threats can include any scenario or change on the
surrounding environment that could have an effect on the achievements of its objectives and
target along with new regulation or policies. In summary, "strengths on which to build,
weaknesses to rectify, possibilities to don't forget and threats to address", (Dib, Siskin,
satisfaction & Ferrell, 2006, p. 45).
The popularity of SWOT analysis is probably referred to the fact that it is considering each the
surroundings and the employer. It miles essential to use SWOT analysis efficiently by using
deciding on the proper inputs and asks the precise questions. The beauty of SWOT evaluation
that it could be used in lots of areas and in the course of one-of-a-kind phases beginning from the
preliminary decision, putting the goals and define the strategies as much as the end result

assessment. Its miles vital to keep in mind that whilst the usage of SWOT analysis it is difficult
someday to categorize a few factors that might fall under the 4 classes.
because the intention of this analysis to help the telecom enterprise in Sri Lanka to support the
firm in his choice about getting into this market, SWOT analysis can answer this query correctly.
The following sections will try and identify the factors for telecom industry in Sri Lanka beneath
each class.
Strengths:
As per CITC, the fixed line increase turned into 3 instances more than the boom in the

total population all through 1990 to 2010 length.

As in step with CITC, in 2010, the entire fixed traces reached greater than four.2 million

with households subscribers were 70% and business 30%.

Huge creation and infrastructure plan for the incoming five years as announced by

authorities will retain the demand on fixed strains for each households and enterprise.
The declining own family size will growth the call for mobile telephones.
The growth in cellular telephone is rapid and most subscribers personal a couple of SIMs
(specific operators).

Weakness:
Oligopolistic situations prevails, the sector is depending on STC's ADSL' community

with little choice of alternatives.

The range of active subscribers is higher than the quantity of total population which will

increase the opposition for market percentage.

Charge conflict is excessive which have an effect on the profitability and reduce the sales

growth for operators.

The telecom enterprise is relying specifically on expatiate exertions and this increase the
costs.

Opportunities:
Imparting new cell and fixed line licenses will provide extra growth.
The 3G marketplace is improving in particular after the new offerings such supplying

very high mobility net (Broadband).

Regulatory lets in foreign buyers in mobiles smartphone organization to personal as much

as 70% of its fairness.

There may be no limit for satellite TV for pc licenses.

The fee discount of ISPs (net service provider) wills growth the growth in internet
market.

Threats:
The high growth of mobile smartphone market is affecting the increase in fixed line.
Unemployment growth at the younger populace can have an effect on the boom of

cellular offerings marketplace.

Charge warfare is a major threat for brand new cumbers inside the mobile market.

Recommendation
The higher manner to offer price effectiveness is to place the available property in this sort of
manner that they will be judiciously used at the same time as pleasant the requirements of the
manner at the identical time. Even the growing quantities of capital give to the problems of the
commercial enterprise organization. With the boom in prices, the employer is required to go
together with the gush. Consequently, the chain of call for and deliver is affecting to the intact

company. So long as Honda sticks at the on hand belongings, the opportunities of balance of
finance are sure. Almost about the human employees goals, Honda is needed to art work with
multi-gifted personnel who are capable of performing tasks of all the kinds in notable conditions
and have abilities to seize the outside opportunities. The potencies of boom and improvement are
rich. Except, the price of loose up communication, collaboration and positive attitude is
replicated. For this reason, Honda needs to encourage the fee management or its management
within the business enterprise. Moreover, the sharing of property which consists of uncooked
substances and semi-finished items can cause the reduction in price which is not any less than to
the merged fee.

Conclusion
Strategic manage in SLT is ready at the managerial diploma that is under the placing of dreams
and over the methods. It normally gives course to the SLT and suggests it the methods that it
have to lead for the increase reason. It even assists the SLT in analyzing and evaluating the
possibilities and threats posed through the outside environment in context with the inner
strengths and weak spot of the enterprise. In the end, hints are given simply so SLT can motive a
better outlook in phrases of performance, resources, planning, and operations and so on.