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Background of the Company

Discuss about the study of factors leading to Dialog Axiata Underperformance in Sri Lanka.

Background of the company

Dialog Axiata is the largest as well as fastest growing telecommunication company in Sri Lanka. It is one of the major subsidiaries of Axiata Group Berhad. The mobile industry of Sri Lanka has achieved several new heights as well as come with developed world. The telecom organization operates 3G and 4G services that supports. The present trends in multimedia as well as internet services and international roaming are important to be considered in this aspect. In addition, the company accounts more than 50% mobile network subscribers in Sri Lanka. The company is the largest Foreign Director Investors with the investment more than USD 1.7 billion (Thilakarathne and Abeysekera 2016). The organization is also an owned subsidiary and a significant player in the infrastructure of Sri Lanka.

Significance and rationale of the research 

The telecommunication industry of Sri Lanka has been in its maturity stage. Dialog Axiata had 50% of market share in the market position, whereas other competitors are Mobitel, Etisalat as well as Hutch shared the rest of the market in 2008. It results privatizations of all market shares of the competitors and started increasing gradually. On the other hand, after introduction of GSM to the market, Dialog Axiata had been able to gain profit than previous years. However, the competitors were not competitor at that time as Dialog Axiata was unbeatable in the market position. In this perspective, the organization has started competing with each other while developing a considerable profit (Elshaikh et al. 2018).  On the other hand, the telecom industry of Sri Lanka has faced a remarkable change in 2009. One of the causes was launching of Airtel with a massive number of customer base. Airtel and Emirates have occupied the positions of the best innovators. In addition, the competitors were able to provide signal coverage across the island. Hence, the organization was not able to sustain in the market with respective position.

In order to attain sustainability, it became essential attracting new consumers and retains them for long time. Since, there are any changes in the products as well as service; there is a high opportunity that the customers switch from a place to another whether it does not satisfy the customers (Samarajiva and Hurulle 2017). Hence, loyalty of the customers has an important role. Thus, it is important to analyze the factors that are responsible for the underperformance of Dialog Axiata.  

Significance and Rationale of the Research

Research questions

Main research question

The research questions can be explained as followed.

  • What are the factors responsible for underperformance of Dialog Axiata?
  • How the issues faced by Dialog Axiata can be resolved?

Specific research question

  • What are the factors responsible for underperformance of Dialog Axiata?

Research objectives 

The research objectives can be listed as followed.

  • To analyze the factors responsible for underperformance of Dialog Axiata
  • To recommend solutions for overcoming the issues

Problem statement

(Wang et al. 2017). Dialog has been able dominating the telecommunication sector for the past decade for continuous innovations as well as use of the latest technologies in the service package. However, strategic management models deployed at Dialog Axiata face some issues and resulting underperformance

Main Sources

It is important to identify the sources from where the data are collected. In the present study, the data will be collected from relevant secondary sources such as books, journals and websites. The annual reports published by the organization will be selected as the main source of the data collection. 


In this chapter of the research, secondary data related business success factors and underperformance of a company is described. The models and theories related to the business success factors are analyzed in this section. In addition, the impact of strategic management in a business organization is discussed along with conceptual framework for the research.

The business success factors 

Combination of the foremost facts is necessary to achieve specific business goals, considered as the key success factors of a business. The factors can be described as followed.

  • Effective leadership: Leadership indicates the procedure of social impact, where a person can support as well as assist others achieving specific heights in business. For an organization to be successful, it is necessary to follow, guide as well as assist others achieving specific targets in the business. For an organization to be successful, it is really important to pursue a great leader as guidance and providing direction assists groups organizing as well as achieving common targets (Mendis et al. 2014). Comprehending the significance of leadership in business assists effectively processing as it has the potential improving productivity of an individual. On the contrary, failure of pursuing effective leadership can generate failure of meeting organizational target and underperformance of the company. Hence, it is important to processes effective leaders in the organization so that potential advantages can be obtained.
  • Enhancing product or service: Adjusting the market tactics and being ahead of the competitors is considered as flawless method for stabilizing and enhancing market share. Apart from this, due to difficulty of being ahead, it is important to ensure that the organization is updated and boost public image of the company (Mendis et al. 2014). It also helps to recognize that that as a business, which stays on the top of the product changes.  
  • Managing cash flows: A major success factors in business is effectively management of the cash flows as well as open communication with the investors along with lenders. For an example, lenders observe the procedure and extent of maintaining profits efficiently. It is an important part of approving finance.
  • Retaining the customers: An organization is successful if it is able to retain the key customers (Berg 2016).  An authority strives to improve the process followed by it. Hence, development of creative ideas help to keep the loyal customer interested is important for the organization. Hence, maintaining effective customer relations is helpful to emphasize on strengthening the decision making process.  
  • Employee operations: Monitoring the work of employees is necessary in determining if they provide valuable information to the customers. Hence, controlling the quality of work is helpful to provide essential adjustments minimizing the number of unsatisfied consumers. Thus, failure of effective employee operations can result underperformance of the organization.

Models and theories related to business success factors

Providing the structure of the organization, Dialog Axiata has received a hybrid infrastructure. It is the combination of Matrix Structure and modular structure. According to the strategic business unit, it works independently as well as every function in the unit has linkage with another. In addition, there is also top down and bottom up approaches of communication is available. It utilizes the resources as well as technologies. The organization includes the first mover benefit of GSM technology in the country. On the other hand, the relationship with telecommunication process of tycoon in the same area. There are also extensions in the process of collaborations and maintaining effective relationships with other organizations. The organization has aggressive marketing strategy that can enable the process of developing financial statements. The rise of content in the share prices has obtained confidence of the investors that can lead to generate the value.

Psychological theories of entrepreneurship:

Psychological trait theories of entrepreneurship stated that specific attitudinal as well as psychological attributes make differentiation of the entrepreneurship from non-entrepreneurship from successful entrepreneurs from unsuccessful individuals. The theories consist of the following.

  • Requirement for achieving and power
  • Psychodynamic model
  • Risk taking propensity
  • Locus of control

Research Questions

Strategic management of an organization is one of the most important part of their project management. This acts to be this important as strategic management helps the business organization to complete project management initially and hence proceed with the project which helps in gaining better efficiency (Arnaiz et al. 2018). Major impacts of strategic management on business productivity are as follows: -

Basic financial Planning

Most important part of business management is to perform financial planning of the business organization. In this phase, planning is made regarding the amount of resources that are to be used in the process of completion of the project. This phase takes into consideration terminologies namely budget planning that includes cost that might be incurred in the processing of resources (Ghadami and Henry 2015). This plan also includes cost that might be incurred in mitigating risks of the organization. This also includes the fact that cost incurred in buying raw materials can be estimated as planning is performed initially before starting of the project. Strategic planning also helps in understanding the scope of growth in business in near future. This helps organizations to incest on the business wisely and suffers less loss in the business planning (Rajapaksha and Rajapakse 2017). This process also helps in understanding the objective of the CE of the organization. This also helps in understanding the amount of cash flow is possible in near future. This leads to the fact that proper planning can be done as per the amount is allotted by the higher authority of the organization.  

Forecast based planning

Finance forecasting helps in understanding facts that only possible way with respect to the amount of money allotted to the organization by the CEOs of the organization. This is the major reason of performing financial planning. Financial planning of this stature is consider d to be Phase II planning. This ensures the fact that the employees of the organization understands the prospect that are to be performed by them which increases the productivity of the organization which in turn increases the turn-over of the organization. Complexities that might arose in the processing of the business can be understood, leading to the fact that steps that will be taken will be decided (Brusset 2016). This leads to mitigation if risks and wastage of raw resources and raw materials that incurs a high cost.  Financial management includes tools that considers the evaluated results of surveys that are conducted. This helps in trend analyzing. This is the major reason that financial management is performed in order to understand the requirement and demands of the global audience.

Research Objectives

Dynamic performance

Financial management takes into consideration the fact that in near future, the entre scenario might change, leading to the fact that all plans that are created in the processing of data analysis can be altered any time in near future. This acts robustness to the plan and decision making ideas (Athukorala and Wongsurawat 2014). This is the only reason that financial management is preferred over other. This is the reason that dynamicity of the entire project is maintained. This increases the efficiency of the project. This is the reason that financial management helps in making the project planning more versatile.   

Factors responsible for underperformance of telecom industry

Major facts that affects the underperformance of a telecommunication company are as follows: -

Lack of transparency

Transparency is one of the most important prospect of an organization. This helps in avoiding misunderstanding between the employees of the organization. This is also another reason that deals with the fact that prosecution and communication in between the higher authorities and lower stature employees are maintained. Communication and transparency also acts as a bridge between internal and external stakeholders as well. In case transparency is not present in the organization, miscommunication will be the regular feature of the organization, leading to conflicts in between internal stakeholders as well as in between internal and external stakeholders. This is the major reason many telecommunication organizations has been suffering.

Lack of innovation

In today’s society innovation is one of the most important feature. Telecommunication has been acting as essentiality over luxury in recent time. This leads to the fact that improvisation from the basic unit is very important. This leads to the fact that proposing new innovations in products helps in gaining global audience (Brusset 2016). In case new innovations are not brought in the manufactured products there is a low chance that client base will increase. It can be stated that client base wants regular up liftment in the process of telecommunication. In order to meet the expectation innovation is required. Brand loyal clients only stick to the organization. This process also leads to the fact that lack of innovation makes it least unique and demand for products that are not unique in nature is not much wanted in the society.   

Conceptual framework 



The management of business organizations plan to start a business need to consider the key success factors, which are important for measuring, ensuring as well as defining success of the future. After realization of the prime activities, requests and methods are considered as the most important as well as demanded by the consumers. It assists in defining the process of developing and adjusting business appropriately.

Problem Statement


The chapter discusses selection of methodological tools for the research. It is considered as systematic process to conduct the research. Research methodology describes structure of the research. Various types of associated concept related to the research is described in the current study. In addition, the chapter elucidates research approach, philosophy and design of the research. On the contrary, the study sheds light on various methodologies tools used for carrying out the research. Furthermore, the researcher justifies the procedure of selecting research tools. On the other hand, researcher ethics and accessibility faced while conducting the research. 

Research philosophy

 Positivism, interpretivism and pragmatism are the types of research philosophies. These can be used while commencing with the research work (Mackey and Gass 2015). The concept of positivism philosophy sheds light on the scopes of the utilizing scientific approach in order to analyze the data thereby, ensuring data validity and accuracy.

In the current research, positivism philosophy will be selected for analyzing the factors responsible for underperformance of Dialog Axiata. Selection of the positivism philosophy has an impact by practical implications. There are important philosophical differences between the researches that focuses on the facts related to the factors of underperformance of Dialog Axiata.

Research approach 

Inductive as well as deductive approaches are utilized to commence the research work. For this researcher, the researcher has utilized deductive approach that has helped in achieving the research aim and proving the hypothesis (Lewis 2015). The research approach is two types such as inductive approach and deductive research approach.

In the current study, deductive approach will be chosen as the approach will be heloful to deduce the theories and models associated with the research topic (Flick 2015). Hence, generalizing from general to the specific can be done by deductive research approach. Data collection is generally used to evaluating propositions and hypothesis associated with the existing theory.

Research design 

Research design is considered as the set of methods as well as procedures utilized in research. The design of the research is divided into several categories (Vaioleti 2016). Explanatory, exploratory as well as descriptive are the research designs that are used in order to carry a research. The selection of the procedures to the group participants depends on hypothesis of the research.  A research design is one of the plans for specifying the process of intending to fulfill the goals of the study.

In the current research, descriptive research design will be selected as it allows the research detecting the issues and factors responsible for the underperformance of Dialog Axiata. In addition, the utilization of research strategy will be justified with the selection of descriptive research design. 

Main Sources

Data collection process

Primary and secondary data collection are types of data collection process. In the present research, primary data has been collected by organizing survey and interview method (Brinkmann 2014). The researcher has conducted survey process for collecting the research. However, secondary data has been collected from journals, books and websites. The application of primary data collection technique is proper and suitable for the research, as the data collection technique allowed the researcher collecting data from the employees and managers of Dialog Axiata. 60 employees and 3 managers of Dialog Axiata will be selected for primary data collection.

Data analysis process

Quantitative data analysis and qualitative data analysis technique are the types of data analysis technique. In the current research, quantitative and qualitative data analysis technique has been used (Mackey and Marsden 2015). The application of quantitative data analysis technique is suitable for the research as the researcher is able determining the number of project members for the survey that considers that their opinion regarding the factors responsible for the underperformance of Dialog Axiata.

Ethical considerations

Following the research ethics is important for achieving aim and objectives of the research that helps to complete the work successfully. In the case of primary data collection technique, one of the most significant research ethics is maintain confidentiality of the collected data as. well as identity of the respondents. On the other hand, disclosing the data as well as identity against the considered as ethics of the research. Moreover, the researcher needs to ensure that the respondents participate in the process of data collection willingly. Hence, signing the consent from the respondents is suitable way to ensure that the participants have given their opinion willingly. Along with these, the researcher needs to collect data from authentic sources as well as use it properly and academic purposes only.



In this chapter, the use of research tools are justified as it allows the researcher analyzing the factors responsible for underperformance of Dialog Axiata. It is justified by using the online platform for analyzing the factors responsible for the underperformance of Dialog Axiata. It has been justified through applying scientific approach, explaining the factors and findings the issues. In this chapter, referring to the existing concepts as well as providing solutions to the addressed gaps is discussed. 


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Athukorala, R.N. and Wongsurawat, W., 2014. Privatisation gone wrong: the corporate tea sector of Sri Lanka. Journal for Global Business Advancement, 7(3), pp.198-208.

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