Threat from one service provider to another since the

Threat
of new entrants

Low

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

The
initial cost to be incurred when entering the telecommunication industry is
high due to expensive machineries and expensive site sharing expenses where
two service providers share the same telecommunication sites.

In
addition, TRC has enacted a law from stopping any new service providers from entering
the telecommunication industry. Due to this legal barrier it can be concluded
that barriers to enter the telecommunication industry is high.

Bargaining
power of buyers

Medium

In
Sri Lanka, demand of the customers are not taken in to account when setting
the call charges. The telecommunication charges are mainly determined by the
Telecommunication Regulation Commission Sri Lanka (TRCSL), therefore the
customers cannot impose a pressure on the service providers.

But
the customers do have the option to switch from one service provider to
another since the switching cost is reallly low in the telecommunication
industry therefore the quality is of high importance in retaining the users.
Dialog has been able to provide customers with high quality service.

Threat
from substitutes

Low

There
is no alternative to mobiles in Sri Lanka, even if it is VOIP over wireless
technology yet internet service is provided by the telecommunication service
providers.

Fixed
line connections are not considered to be a substitutes in Sri Lanka due to
the immobility of such technology. Dialog has even a subsidiary which has
CDMA license in Sri Lanka along with some other operators

Bargaining
power of suppliers

Medium

There
are limitations for setting sites that provide signals. Dialog and other
telecommunication service providers share the towers and they pay and set of
the revenue and expenses against each other.

The
equipment providers are limited therefore 
the power that they have over the price at which tower equipment are
high

Rivalry
among competing firms

High

In
Sri Lanka, mobile operators are in a quality and other service driven
competition where firms are coming up with services to make customers lives
easier. In addition, they come up with loyalty packages. Since price is not
in the hands of mobile operators they often come up with features such as
enabling users to book movie tickers, e channeling, and mobile banking. in
addition, they come up with mobile applications. Dialog AxiataPlC is known
for its innovations in Sri Lanka