Competitive Strategy for Dialog Mobile

militant dodging 1 warring dodging for duologue Mobile competitory dodging 2 ABSTRACT The study innovations at devising a free-enterprise(a) strategy for dialogue Mobile, the provider of unstable telephony table serve ups which is the sum business of dialog Telekom PLC. talks which actually has node prat of all oer 5 zillion and a revenue sh argon of over 60% is the market draw in Sri Lankas spry exertion.However ascribable to combative competitor price contends, the entrance of multinational goliaths often(prenominal) as Bharthi Airtel, ball-shaped and domestic economic downspin, fluctuating inflation and steep cost of competency combined with a bullish magnification strategy, talks had to slip a loss of Rs. 2. 88 Billion in 2008 from a pull ahead of 8. 91 Billion in 2007. This forms the background for dialogs competitive strategy. Since the industriousness has an Oligopolistic structure, constant price wars ar putting the fabrication at risk .In sanctify to be sustainable in such an environment it is crucial that talks foc functions on guest retention and acquisition via customer centric policies, usurpationes and a culture of relentless(prenominal) pursuit towards exceptional customer service. This would pass water to be backed by lean bear upones, prudent investments and rigorous project focusing. Dialog should as well as consider the feasibility of fol blueing an outsourced model by handing over high cost activities such as network infrastructure wariness and IT to selected vendors. rivalrous Strategy 3 plank of Contents ABSTRACT . 2 Introduction .. 6 Preliminary headache abridgment 7 Value Creation small scotch Analysis .. 10 monetary value bodily structure .. 10 cinque Forces Analysis. 12 Existing Rivalry Amongst Competitors .. 13 menace Of saucy Entrants . 3 The Power Of Suppliers . 14 The Power Of Buyers .. 15 SWOT Analysis 15 Strengths. 15 Weaknesses 6 Opportunities .. 17 Threats .. . 17 Market Structure & angstrom node Behavior. 18 Dialog Telekom PLC Performance appraise for 2008 .. 19 Macro stinting Analysis . 3 Economic predict 25 ride Forces .. 27 hawkish Strategy 4 impulsive Forces in the topical anesthetic manu eventuring .. 27 Changes In Long consideration constancy Growth Rate 7 entranceway Of Major transnational Firms .. 28 Innovative affair Models . 28 Exponential Growth In net profit Bandwith .. 28 regulative Changes . 28 Reduced Consumer expenditure.. 9 Unemployment 29 add Taxes .. 29 Driving Forces In The Global Industry .. 30 The cyberspace And Digitization Of Content . 30 strategical externalise For Dialog Mobile 0 Short Term . 30 compound appeal heed .. 30 Increased Focus On guest Retention . 31 Process Optimization To Support client central Objectives .. 31 Stringent Project Management With Emphasis On world-shattering Value Addition 2 Long Term Plan (2-4 Years) . 32 Cost Leadership . 32 Outsourced Business Model . 32 In creased Emphasis On Data . 33 Increased Emphasis On Green Technologies 3 REFERENCES . 34 matched Strategy 5 Table of systema skeletales defer 1 DIRECT COSTS . 11 TABLE 2 OPERATIONAL COSTS .. 11 TABLE 3 DTL SUBSCRIBER crop . 9 TABLE 4 DTL REVENUE GROWTH . 19 TABLE 5 DTL DIRECT COST COMPARISON .. 20 TABLE 6 DTL OPERATIONAL COST COMPARISON 20 TABLE 7 DTL monetary PERFORMANCE SNAP SHOT 22 construe 1 pass judgment CREATION .. get a frontier 2 DTL COST STRUCTURE.. 10 FIGURE 3 VALUE CHAIN 11 FIGURE 4 quintet FORCES synopsis . 12 FIGURE 5 DTL REVENUE GROWTH INVESTOR fabrication 2008 .. 20 FIGURE 6 DTL QUARTERLY REVENUE GROWTH 1 FIGURE 7 DTL SUBSCRIBER GROWTH 21 FIGURE 8 BUSINESS CYCLE .. 23 FIGURE 9 SRI LANKA GDP ANALYSIS 25 FIGURE 10 SRI LANKA INFLATION TREND .. .. 26 FIGURE 11 SRI LANKA MOBILE TAXES 7 rivalrous Strategy 6 Economic Strategy for Dialog Mobile Introduction Dialog Telekom PLC, Sri Lankas leading telecoms friendship, ope evaluate Dialog GSM, the artles ss braggart(a)st peregrine phone network. Dialog GSM has spearheaded the erratic industry in Sri Lanka impel it to a level of engineering in cable television service with the best in the world. The company ope range 2. 5G and 3G networks, with the distinction of being the humbled 3G promoter in to the south Asia. The Company also provides internationalist Roaming facilities in over 190 countries.Dialog GSM is the countrys largest cellular network providing services to over 5 one million million million customers across the island (Dialog, 2009) In addition to its core business of energetic telephony, Dialog Telekom operates Dialog TV, a take up-to-home satellite television service, Dialog Broadband which offers fixed-line services and broadband cyberspace and Dialog Global which provides a wide range of international tele converse services. The range of this study is limited to the formulation of a Competitive Strategic Plan for Dialog Mobile which is the largest re venue contri exceptor.The total restless proofreader radical as at 31st declination, 2008 was 5. 51 Million, out of which12% consists of property paid customers. The ARPU for post paid was Rs. 1404, while Prepaid was Rs. 319 as at 31st December 2008 (Dialog, 2009). Competitive Strategy 7 Preliminary Business Analysis Value Creation Dialog Telekom PLCs Vision and direction provide insight into the ways in which the company strives to create measure to its customers. Vision To be the undisputed leader in the provision of multi stunning connectivity get outing always in the empowerment and enrichment of Lankan lives and enterprises (Dialog, 2009).Mission To lead in the provision of technology enabled connectivity touching multiple human senses and faculties, through committed adherence to customer driven, responsive and flexible business processes and through the delivery of quality service and leading edge technology unparalleled by any a nonher(prenominal) spurred by an emp owered set of dedicated individuals who atomic cast 18 driven by an irrepressible desire to work as one towards a earthy goal in the truest sense of the team spirit (Dialog, 2009). Competitive Strategy 8 Figure 1 Value Creation Customers perceived emolument CS =PB MP Value Created PF = MP PC organizational costBeing a restless telecom service provider in a nutshell the company provides value to society by enabling people to be accessible at any judgment of conviction from any place at an affordable price. With regard to the reason for the companys existence it would be prudent to initially curb into account the fol crusheding requirements/characteristics of unsettled telecommunication The existence of fundamental opening barriers delinquent to the need for approval from TRC (Telecommunication Regulatory relegating) for commencement of trading operations Competitive Strategy 9 Extremely high metropolis and operational expenditure requirements for nfrastructure (ba se moves, towers, contact center and service outlets, systems) and aid The requirement for specialized knowledge regarding every aspect of Mobile communication The need for a significant workforce in hostel to imbibe operations and maintain status quo post commencement An extended requital plosive resulting in the need for revenue generation in narrate to be sustainable (consumption of the service sans significant profit generation is not financially viable) All aspects mentioned above make it impossible for a virtuoso or small group of individuals to replicate the production of mobile telecommunication.This is in line with the reflections of Coase (1937) who stated that firms are more than than efficient at arrange activities in comparison to markets. Dialog Telekom would have the benefit of economies of scale &type A economies of team production, gum olibanum drastically minify cost of production. The new(prenominal) significant advantage is the common ownership o f productive resources such as engineering, legal, IT, accounting, charging and so forth Competitive Strategy 10 Micro Economic Analysis Cost StructureDialog Telekom being a mobile network operator has to collaborate with more another(prenominal) another(prenominal) suppliers and stakeholders in the value chain in order to run the operations and provide sufficient value to the customer and in that pryby earn profits. Figure 2 DTL cost structure Banks, Finance companies Suppliers of support services such as dealers & franchisees Government taxes Network equipment suppliers Dialog Telekom Other suppliers of capital items PCs, headsets etc Hand set dealers & retailers postulate cost Air conviction and SIM card retailersCustomers Competitive Strategy 11 The above diagram shows a helicopter regard of the discordant stakeholders and the way in which cash flows in and out of the company. The make out source of revenue is the Corporate and retail consumer base. Table 1 Dire ct costs Table 2 Operational costs Figure 3 Value chain Network associate costs formed a major portion of direct costs, while selling expenses formed a major portion of operational costs (Dialog, 2009). Competitive Strategy 12 Five Forces Analysis Figure 4 Five forces analysisThreat of new entrants Threat posed is relatively high not withstanding significant entry barriers ICT company Maxis is poised to launch operations to become the 6th mobile operator Supplier power Many suppliers Suppliers currently wield relatively low power Existing rivalry amongst competitors 04 fixed line operators 05 Mobile operators 29 ISPs Intense rivalry amongst competitors Buyer power Buyer power is relatively high Switching costs are low Many mobile operators to choose from Threat of substitution VOIP and CDMA can be considered substitutes However, hreat posed is marginal Competitive Strategy 13 Existing Rivalry Amongst Competitors There are currently 04 mobile operators that could be considered direct competitors to Dialog, namely Mobitel, TIGO, Hutch & Bharthi Airtel. The biggest competitor currently is Mobitel, with a market share of approximately 18% in comparison to Dialogs 53% (Bartleet Mallory stockbrokers, 2008). Mobitel follows an extremely antiphonal strategy, where it mirrors every action undertaken by Dialog. For example, Mobitel launched 3G service soon subsequently on it was launched by Dialog.Mobitel also follows vulturous pricing techniques by constantly under corking the prices set by Dialog in a bid to lure customers away. Bharathi Airtel, the latest fake in the industry is a market giant in India, with over 100 Million subscribers and a market share of over 25% (Report Buyer, 2009). Airtels strategy has always been providing affordable mobile services to customers. TIGO, which was formally known as Celltel concentrates more on the Prepaid market. TIGO was the first player to provide per act billing facilities to customers.Hutch while being a do minating player in India is more of a fringe player in Sri Lanka that also emphasizes on the Prepaid segment. Threat Of parvenue Entrants art object barriers to entry into the market are relatively high, there are quite a few players that have either entered or are in the process of entering the market. one and only(a) such player is Maxis, a Malaysian company which already has operations in India and Indonesia. Maxis also owns 44% of shares at SLT (Bartleet Mallory stockbrokers, 2008). While Maxis would Competitive Strategy 14 push erode Dialogs market share its strategy might be less predacious in comparison to some players.Other players with plans to enter the Sri Lankan market are combine Mobile and MTNL, both(prenominal) Indian companies. Reliance Mobile, like Airtel is also a giant in the Indian market constantly at war with the latter for the number 01 position. The Power Of Suppliers There are some suppliers of mobile infrastructure components in the industry. These suppliers supply products such as base invest components, cell tag oning components and services such as base station prevarication, tower assembly and switching optimization. Vendors include Huawei, Sun, Ericsson etc.Dialog Telekom being an industry giant and the fact that there are numerous vendors means that the crop of the vendors is less in comparison to the power wielded by Dialog. Furthermore mobile service providers purchase products in large quantities over a farsighted period of time. This would also include the purchase of services such as assembly and maintenance. Securing such contracts are extremely important from the suppliers perspective. Vendors such as Dialog due to its enormous influence in the local anaesthetic industry will also influence the research and development process of the vendors and the type of technology that is developed.For example, the adoption of 3G technology would have dictated the priorities of the vendors in terms of the type of technol ogy that should be introduced to the market. Vendors in general have high fixed costs such as R and low incremental costs thus making it extremely important that they apprehend profitable contracts with mobile operators. Competitive Strategy 15 The Power Of Buyers In stark contrast to the vendors, the power of consumers is high. This is due to the low switching costs. A new SIM only costs approximately Rs. 00 hence customers do not have to spend a great deal if they want to switch operators. This power wielded by the consumer is only compounded by the presence of many mobile operators in the industry. The fact that these operators also include giants such as Bhrarthi Airtel only result in providing the buyers more bargaining power with their current operator. SWOT Analysis Strengths The main strengths of Dialog are threefold, one its disfigurement name, two its vast infra structure and three the financial setting from its parent company Axiata.According to Perera (2008) from the Asian Tribune, the company was voted the number 1 cross off for two consecutive yrs with a brand value of Rs. 12. 324 million in 2006 and Rs. 12. 401 million in 2007. The company was also voted number 1 amongst the top ten companies in April 2008. Innovation has always been one of Dialogs strengths the company was the first to launch SMS, MMS, Song catcher, mobile commerce, mobile e mail, information on demand etc in the region. Dialog was presented the more or less innovative brand of the year award in recognition of this fact at the SLIM brand excellence awards.Competitive Strategy 16 In terms of infra structure and reach Dialog Telekom has over 1200 base stations spanning all provinces and has over 100 customer service centers, which is more than any other company in the country. Dialog operates 2. 5G and 3G networks. It is also cerebrate to over 200 global destinations via international roaming (Dialog, 2009). Axiata group Berhad is the emerging leader in Asian mobile commun ications. It has controlling interest in Dialog Telekom along with many other subsidiaries in the South East Asian region.The straight financial support provided by Axiata for Dialog Telekom is one of its samara strengths and has had a great meeting on the development and expansion of the company. Dialog in re charm has been a significant contributor of profits for Axiata. Weaknesses One of the fundamental weaknesses of Dialog Telekom is its change magnitudely high costs. A feature of many conglomerates that experience rapid maturation is the inefficiencies that silently creep in. entireness costs addd by 40% as at December 2008, with costs of finance increasing by 233% and depreciation by 81% (Dialog, 2009).Dialog also has a 3500 strong workforce which has resulted in overlapping scope of work across many divisions and units. The increasing size of the company has also lead to inefficient processes and unnecessary beurocracy. As a result it would be more and more challenging for the company to make swift changes in its strategic direction. Bigger companies also have the added danger of being provided distanced from the end consumer of their products and services. This danger is also a reality due to many personnel being unaware of VOC (Voice Competitive Strategy 17 f the customer), thus resulting in policies that arent necessarily customer centric in nature. Other weaknesses include its legacy systems. Most of its systems require upgrades or changes due to the strain imposed by the rapidly growing customer base and advances in technology over the geezerhood. However such changes cannot be do within a short timeframe and huge amount of financial resources and time are required to successfully work through changes. Opportunities Current mobile incursion in Sri Lanka is estimated to be around 50% with room for a further 20% in the short term (Lanka Business Online, 2009).At the end of 2008 there were 11. 087 million subscribers with an annual growth rate of 39% which is a descent from 48% in 2007 and 61% in 2006. Provinces such as wedlock West, North Central, Sabaragamuwa, East and north have a fixed line distribution of below 10% and therefore provide ample probability for adjoind mobile perspicacity. Threats The main threats associated with the mobile industry are the increasing number of competitors and the global economic impact on customer pass classs. The increasing competition has lead to huge price wars which has in turn negatively affected all the players in the industry.This trend could have a long term impact on research and development and the investment into new technologies. Therefore even though companies Competitive Strategy 18 might feel that they are able to remain competitive in the short term it could result in long term lessening in the value provided to consumers. Dialog is not immune to this problem, but quite an it is has reacted to the price wars by drastically simplification the tariffs and by providing customers with packages that include cubic yard minutes outgoing free call charges. Furthermore the rate of penetration is also on a reducing trend.Market Structure & Customer Behavior The telecommunication industry in Sri Lanka consists of a few key players. As mentioned prior, the industry consists of 05 mobile operators and 04 fixed line operators. 100% of the mobile communication market share is owned by these 05 players. There are also significant barriers to entry. A firm would require very large financial resources to start operations. Existing dominant companies would also have influence over the suppliers and essential resources such as a qualified and arch(prenominal) workforce, network infrastructure and dealer network.New comers would have to negotiate terms with the very(prenominal) vendors who would have more leverage due to their existing contracts with the incumbent players. New entrants would also face barriers such as requiring approval and licensi ng from the Telecommunications Regulatory Commission for the commencement of operations. The success of any startup company in the industry would also depend on its own brand recognition (from operations in other countries), since it would have to compete with companies that have a true customer base with significant brand recognition locally.The type of vas (Value Added services) provided by the players in the industry are to a large Competitive Strategy 19 extent homogenous in nature. All these factors are indicative of an Oligopolistic market structure. The telecommunication industry is also a reducing cost industry. This is due to the fact that as the number of players in the industry increases the suppliers of network infrastructure would experience economies of scale. This would result in lower input costs for the mobile operators who also purchase items in bulk quantities.With respect to customer behavior patterns, customers are generally price elastic thus as a rule when prices are increased by a given percentage, rule reduces by a larger percentage. However, this behavior pattern cannot be taken for granted since there are various other factors that have an impact on the usage patterns of customers. Dialog Telekom PLC Performance look back for 2008 The customer base grew to 5. 51 Million at the end of 2008 preserve a 29% growth in comparison to 2007 (Dialog, 2009) Table 3 DTL subscriber growth Table 4 DTL revenue growth Competitive Strategy 20Figure 5 DTL revenue growth Investor forum 2008 Average revenue per user had dropped by 23% for Prepaid and 17% for Postpaid respectively. This was due to aggressive price wars by the competitors which resulted in Dialog significantly reducing its tariffs. However, the drop-off in prices did not significantly increase the amount of usage due to cut back elasticity of demand, while the 29% increase in customer share was conservative at best. Prepaid revenue share was 48%, while postpaid revenue contribut ion was 29%. vas account for almost 10% of the total revenue (Dialog, 2009) Table 5 DTL Direct cost comparisonTable 6 DTL Operational cost comparison Competitive Strategy 21 As captioned there was a 48% increase in direct costs and a 36% increase in operational costs YoY (year on year). This was due to an increase in International telecommunication levy & frequency fees, increased telco depreciation, an increase in network costs (driven by increased energy costs) and an increase in customer related costs. Increases in operational costs were due to increased operations (increased number of base stations), increased maintenance costs and inflationary pressure. Figure 6 DTL Quarterly revenue growthFigure 7 DTL proofreader growth Competitive Strategy 22 There was a discernible reduction in the subscriber and revenue growth between the second and fourth quarters of 2008. However, quarterly growth was 10. 7% as at Q4 which the highest since Q2 2006. Table 7 DTL Financial performance snap shot sugar after tax was a negative Rs. 1. 5 Billion. This was due to many factors such as Rising energy and transport costs Local and global Macro economic downturn Reduced elasticity levels puffiness Predatory price wars and marketing tactics of competitors Competitive Strategy 23Macro Economic Analysis Figure 8 Business cycle hot flash Peak Trough Recession Expansion One business cycle time The global economic crisis which started in mid 2007 and worsened in 2008 needs had an impact on the Sri Lankan economy which also had to contend with a well-mannered war for the last three decades. The global economy is currently cladding a recession, largely due to mishandling of debts in the U. S which eventually had an impact on the global economy. Some analysts are hopeful that the worst is over and that the real GDP has passed the trough stage and that the economy might be on the rebound.The 30 year long war has lead to great war related disbursement by the regime with less aid given to development. In a bid to retrieve the money presidential term taxes Competitive Strategy 24 have been regularly increased, thus having a negative impact on customers disposable income and resulting expense patterns. The global economic crisis only added fuel to the fire with millions of workers losing their jobs worldwide. This in turn had a ripple effect on the countrys expatriates who are a great source of foreign income.Foreign remittances are used to take care of 70% of the countrys trade deficit (Pushparanjan, 2008). These expatriates were amongst the first to be retrenched and forced to return to Sri Lanka. This situation was compounded by cut demand for goods and services produced locally, thus resulting in widening balance of payments and occlusive of companies that rely on exports. Garment companies for example account for 3 Million dollars in foreign income annually, of which 50% is reinvested in fabrics and machinery (Samath, 2009).The resulting los s of jobs for thousands of people in the local industry has a direct impact on their overall spending on goods and services. This domino effect has indirectly resulted in low mobile usage and adoption of new services resulting in a reduction of net profits. However, the end to the military conflict in Sri Lanka after 26 years has resulted in a positive outlook for the countrys economy. The all share price index rose to a 7 month high and the central desire of Sri Lanka has shifted its forecast from 2. 5% growth to 4. 5 to 5% growth by the end of the year (Shiyin, 2009).The government has already laid out plans for massive development initiatives in the North of the country. This augurs well for the economy as a whole and the mobile industry in particular since it would result in increased Competitive Strategy 25 employment opportunities which would in turn hopefully fork out to increased mobile usage. Economic Forecast The rate of inflation is expect to be around 7% in 2010 and a n average of 6. 5% in 2009. GDP growth rate is expected to improve from 2. 5% to 4. 5 5% by end 2009 due to the end of military operations ( Figure 9 Sri Lanka GDP analysisAs shown the projected trade deficit for Sri Lanka is 9% of GDP for 2009. The trade deficit has been increasing YoY (Colombo Page, 2009) Competitive Strategy 26 Figure 10 Sri Lanka inflation trend Projected inflation rates are single digit figures i. e. approximately 9%. This is a reduction from 14% in the previous year. To support growth, Sri Lanka in December unveil a 16 billion rupees ($140 million) stimulus package and reduced the interest rates to 16. 5% from 17% (Thomas, 2009). Taxes imposed on mobile users in 2007 were 7. % Mobile Subscriber Levy and a usage unsusceptible 5o rupee tax on subscriptions. The 50 rupee tax was later dropped and the MSL was increased to 10% in 2009. VAT was reduced to 12% in 2009 from 15% in the previous year Competitive Strategy 27 Figure 11 Sri Lanka mobile taxes This amende d levy of 10% is effective to consumers who spend less than Rs. 2000 per month. However, overall this tax will have a negative impact on total consumer usage (Samarajiva, 2007) Driving Forces Driving Forces in the Local Industry Changes In Long Term Industry Growth Rate As at end 2008 there were 11. 87mn mobile subscribers in the market, a penetration rate of 54%, and annual growth of 39%. However, this rate of increase is slower than in previous years -48% in 2007 and 61% in 2006 (Sri Lanka communications report, 2008). With increased competition and predatory tactics it would become harder for any given company to experience solid growth in the coming years. Competitive Strategy 28 Entry Of Major Multinational Firms With the entry of firms such as Bharthi Airtel and Reliance mobile in the pipeline existing firms would have to become more and more competitive in order to survive.Innovative Business Models Many of the firms are growing innovative business models in the foreign ma rkets. Companies have yet to implement extremely innovative models in the local industry. However Bharthi Airtel has initiated this trend with its straightforward plans theory, where unlike the rest of the players in the market it has distanced itself from the concept of multiple rates during different hours to different networks (off peak, peak, weekend etc) Exponential Growth In Network Bandwith The bandwith provided by broadband internet providers has significantly increased over the years.In the former(prenominal) 512 kbps was considered fast and was the norm, now however, most operators provide speeds of over 2GB. This has changed the usage patterns and reasons for use by consumers. Regulatory Changes Certain players such as Bharthi Airtel were vying for the implementation of number portability, but this was not implemented by the government citing security concerns. The government also recently requested all mobile operators to ensure that both postpaid and prepaid customers are registered with their rightful owners. This has had a negative impact on the sale of prepaid connections.Competitive Strategy 29 Reduced Consumer Spending Consumer spending has significantly reduced and has had an impact on the bottom line of most players in the market. Elasticity levels which were around 1 1. 5 in 2006, reduced to 0. 7 in 2008 (Dialog, 2009). This has forced companies to drastically reduce spending and in certain instances even retrench employees to reduce costs. The cost cutting measures will have an impact on training and development and R, which in turn would have an impact on the long term. Unemployment The unemployment rate which was steady reducing over the years (6% in 2007, 5. % in 2008) is bound to face a reversal in 2009, due to the global recession. The central bank of Sri Lanka has requested the government firms to put recruitment on hold (Lanka Business Online) till the economy improves. This would have a direct impact on plans for expansion any organization. Increased Taxes Government taxes on mobile users has been in a constant state of flux and a reason for much concern amongst the mobile operators and consumers alike. This volatility of the governments policies with regard to taxes will have a negative impact on the growth of the industry. Competitive Strategy 0 Driving Forces In The Global Industry The Internet And Digitization Of Content Internet usage in the country is put away in its early stages. However one of the threats the internet poses with the increased bandwith provided by ISPs is the widespread adoption of VOIP, since this service would be provided FOC. This could become a direct threat to the telecommunication industry in the future. Strategic Plan For Dialog Mobile Short Term Enhanced Cost Management Cost optimization is crucial for an organization to remain competitive. As companies expand inefficiencies result as a byproduct.Dialog is no exception, a bullish strategy for expansion resulted in reduced retained profits and a bloated middle vigilance. A loss of Rs. 2. 88 Billion in 2008, compared to a profit of Rs. 8. 91 billion in 2007 is ample reason for rigorous guardianship to the prevention of revenue leakage and prudent investments with an eye on the long term. Competitive Strategy 31 Increased Focus On Customer Retention Often companies can get swept away by concepts, especially ones that give you a false sense of safety such as Customer Relationship Management, Customer Experience Management, Customer Lifecycle Management etc.Most companies pay lip service to these usages and they often believe that they do practice it. However there is often a huge gap between actual customer satisfaction levels and the satisfaction levels perceived by the company. sooner than romanticizing these concepts, companies should actually practice it religiously. In the case of Dialog, it would mean ensuring that all customer facing staff have the right qualities for the job. Skills can be tau ght, but attitude is harder to change.The true essence of customer service should be instilled and secure constantly. This should be backed by the right policies and coordination amongst all stakeholder divisions in order to ensure that the customers needs are continuously met beyond expectation. Process Optimization To Support Customer Centric Objectives All processes as far as possible would have to be tailored with the customer in mind. However, most business processes tend to be inward smell, There is a constant tug of war between various stakeholders who seldom work in synergy.This is due to conflicting interests and lack of customer visibility. For example Finance and Credit departments create their processes with the sole aim of managing finances and credit collection, which tends to focus on the short term profit, instead than long term customer retention. The challenge then is for the process management team to ensure that all cross functional customer related processes are driven by customer centric objectives. This would also Competitive Strategy 32 include the removal of all non value adding processes and continuous review