FIVE FORCES ANALYSIS

This will direct to determine where the power of the company lies in the business and thereby find and develop an edge
over the rivals in the industry. Porters Five Forces Analysis To experience high profit edges: Bargaining Power of
Suppliers (Supplier Power) Bargaining Power of Customers
1. Weak supplier and customer bargaining power:
Will direct the company to experience higher level of industrial power as customers and suppliers are not in a
position to influence and make a high impact on companys business process.

2. Higher entry barriers and few opportunities for substitute products:

Will direct the company to experience lower level of rivalry and this will cause to stabilize in the market with higher
density of customer base. Bargaining Power of Customers: Their revenue for the first 9 months of time period in
2012 grew by 14% from 15.9 billion LKR to 18.2 billion LKR in comparison with same duration in year 2011 due to
augmentation in companys subscriber base cause of enhanced level of customer experience Mobitel has to
depend on local providers such as SLT (Sri Lanka Telecom) The supremacy of customer is considered as a crucial
factor since this cause to drive the prices down by exerting pressure over the organization or uplifting the quality of
the service for the same charge, and therefore decrease the profitability of the business process. High degree of
Brand Identity Mobitel GSM is fixed to low price elasticity due to higher number of industry rivals and the rate
regulations of Telecommunication Regulatory Commission of Sri Lanka (TRCSL), which makes the customers
bargaining power into high over the company.
Though the GSM process is fixed to low price elasticity when it comes to broadband market Mobitels price elasticity
is considerably in a higher level as it has a fully fledge high speed broadband networking technology in the country
specially with better coverage than other service providers in the industry, which reduces or mitigates the bargaining
power of customers up to considerable stage.

3. Bargaining Power of Suppliers (Supplier Power) The ability of suppliers of the company to influence the setting of
prices to capture more industry profit, and the company should able to control its suppliers to wield more power
against the market rivalry. Since Mobitel doesnt own one which are authorized to have the direct access to the
national telecommunication backbone Local Telecommunication Providers: Therefore, the above mentioned
suppliers have an upper hand and they are having more supplier bargaining power over the company

Mobitel is concerned as a subsidiary of Sri Lanka Telecom (SLT) supplier bargaining power is comparatively in a
lower level than other market rivals.
The industry perspective factor: comparatively with other countries, the amount of users who are using data/voice is
in a lower level in Sri Lanka, hence low traffic generated.

Incremental factor of supplier bargaining power as the suppliers such as ISPs, content providers for value added
services and the peering partners are in a position to influence the company business process.

4. Threats of New Entrants Telecommunication industry due to higher amount of industrial profitability, the probability
of attracting new business firms for the industry is comparatively high.

That directly impacts to all the current telecommunication operators in the market by making their business
profitability in to risk as they may have to experience profit reductions with newer firm introductions The industry
perspective factor: Strategic use of Information in Mobitel (PVT).Ltd. Threats of New Entrants LankaJournal (2009,
p1) stated that Bharti Airtel could able to achieve one million of customer base in Sri Lanka within 171 days of the
launch of its services in Sri Lanka. Numerous level of value added services plus low price package introductions for
different age categories Airtel could able to grab the customer base of other mobile telecommunication operators in
the industry aggressively However currently the rivalry caused by new entrance with attractive lower service
charges was controlled by Tariff Regulation policy of Telecommunication Regulatory Commission of Sri Lanka
(TRCSL) as in its Proposed Ten Year Development Plan 2006 2016
5. Threats of New Substitutes a crucial factor which affects a companys stability in the market by significantly
influencing to the profit acquiring process of the company. This factor activates when the price fluctuations of
substitute products which may leads to degrade the customer base of the company by allowing customers to move
for substitutes.
More substitute opportunities in the telecommunication industry will diminish the demand for the Mobitel as some
services of which it provides become inflexible for the customers due to more customer perspective flexible
opportunities in substitute service. Threats of New Substitutes Skype technology Sri Lanka Telecom (SLT),
Lankabell, and Suntel who were awarded with CDMA technological license Figure 1: Predicted analysis of 2008
Skype Subscriber Base (Evalueserve, 2005) The prevailing Skype technology not only captured the roaming
telecommunication segment

But it also made;

A high impact on local and business telecommunication fields too by providing seamless technological advancement
such as free video conferencing plus capturing mobility technological advancements as well by using upgraded
solutions such as by introducing flexible Skype solutions for mobile platforms. While concerning on fixed line operators
awarded with CDMA technologys targeted market segment is to serve companies and home usages without serving
advance mobility.
This will not make higher level of impact on Mobitels telecommunication process comparatively to Skype technology.
Rivalry among Competing Firms Due to higher amount of competency in Sri Lankan mobile service industry each and
every operator has to experience, maximum level of industry rivalry to stabilize in the market. Rivalry among Competing
Firms VAS gives Mobitel the edge they need to overtake their rivals While Mobitel compete on the VAS and the other
services, most other operators tend to compete only on the coverage and the rates in mobile service industry The
above articulated industry rival analysis arguments can be directly backup with earlier mentioned;

INITIATIVES
Mobitel mLottery Tickets Now available on mobile Dial 339

SriLankan Aviation College Partners With Mobitel For MLearning Platform

The National Carrier's integrated training arm, SriLankan Aviation College, joined hands with the National Mobile
Service Provider, Mobitel to introduce the electronic learning platform, mLearning for the education and training
requirements of the college.

mLearning allows simultaneous lecture delivery via several multimedia modes such as PowerPoint, Instant
Messaging, Word, Video, Audio and Internet, with live audio/video multiple way communication to enable interaction
between students and teachers. This also provides an ideal platform for question and answer sessions where
students can clarify what they learn and clear their doubts. mLearning also facilitates material sharing and session
recording, so that students can keep them stored for their future reference.
http://www.serendib.btoptions.lk/newsshow.php?id=1705&issue=69

Mobitel promotes NCPA hotline to report child abuses

Sri Lanka Telecom Mobitel is lending its support to the National Child Protection Authority on a number of projects.
This includes developing and building the National Child Protection Authoritys (NCPA) programme and its work, and
achieving its vision of creating child-friendly and protective environments for children.

Mobitel will initially work on promoting the NCPAs 24-hour hotline: Child Line 1929. Subsequently, Mobitel will also
work closely with the NCPA, towards strengthening their call centre, via training programmes as well as an
infrastructure upgrade, the company said.
Mobitel also will carry out several fund-raising initiatives on behalf of the NCPA, which will lead towards the set-up of
safe houses, which are aimed at ensuring the highest level of security to child witnesses and abused children.
We are responsible for the protection and development of children, and we must ensure that they are able to achieve
their fullest potential. This CSR project is of utmost importance to us, said Nimal Welgama, Chairman, Mobitel.
http://www.sundaytimes.lk/121014/business-times/mobitel-promotes-ncpa-hotline-to-report-child-abuses15724.html
Mobitel revamps its Customer Care Centre in Matara with the latest technology

The National Mobile Service Provider Mobitel in its endeavor to offer the best of technology to its customers recently
revamped its Matara Customer Care Centre. Ceremoniously opened by the Chairman of Sri Lanka Telecom and Mobitel
Mr. P. G. Kumarasingha and Chief Executive Officer of Mobitel Mr. Ranjith G. Rubasinghe, the modern branch is
designed to be on par with all Mobitel Customer Care Centres islandwide. Fully equipped with the latest 4G LTE
technology enabling the customers in the Southern region the opportunity to experience and enjoy the most up-to-date
products and services including smartphones, tabs and data devices which delivers the best ICT experience.
Customers would receive an exclusive opportunity to experience some of the most superior and technologically
advanced devices available worldwide. Subsequent to its refurbishment, the Matara Customer Care Centre welcomes
customers to visit and enjoy special discounts on handsets and dongles with customised packages available during the
month of October.
In addition, the Matara Customer Care Centre is also equipped to offer a diverse portfolio of innovative enterprise
solutions that include mTicketing, the ticket reservation service for railway ticket and airline ticket purchases,
mHealth, for better healthcare services, mTrack, the reliable GPS tracking solution, iCard the electronic card that
ensures the safety and security of school students, mReservations, for special hotel reservations, Doc Call, for quality
healthcare services, mTaxi, for speedy trishaw hires, mLearning, for a fully-fledged distance learning experience for
students and the NFC based fuel card system for added expediency at filling stations among other services.
The refurbished Matara Customer Care Centre located at No 15, Beach Road, Matara is the latest state-of-the-art hot
spot expected to deliver both a fun and convenient environment for customers in the South.
http://lankabusinessnews.com/index.php/telecommunication/item/1666-mobitel-revamps-its-customer-care-centre-inmatara-with-the-latest-technology/1666-mobitel-revamps-its-customer-care-centre-in-matara-with-the-latest-technology

Mobitel and Ericsson partner to drive Sri Lankas smart society vision
Mobitel and Ericsson yesterday announced the signing of a Memorandum of Understanding (MOU) between the two
companies, stating that in 2015 they intend to forge a strategic business partnership that aims to significantly contribute
to the nations smart society vision and knowledge hub strategy.
The collaboration, which focuses on jointly working together to make WiFi broadband services more accessible and
affordable to university students across the country through a WiFi as a Service business partnership, is aligned with
the nations smart society vision and knowledge hub strategy, as well as the recently announced policy of transforming
Sri Lanka into a WiFi nation in the coming years.
Sri Lanka Telecom Mobitel Chief Executive Officer Ranjith G. Rubasinghe said: Mobitel considers it a pleasure to join
hands with Ericsson in exploring the ways and means of driving the Smart Society vision in Sri Lanka. We believe that
our partnership will bring significant value to university students across the country as they increasingly gain access to
affordable broadband services through WiFi connectivity. We understand that a countrys socioeconomic development
is intrinsically tied to the extent to which its student population is empowered via access to ubiquitous broadband
connectivity and internet services. Through this important initiative with Ericsson, we aim to empower university
students with the communication tools required to foster innovation and enhance the education experience in alignment
with the nations Knowledge Hub strategy. An initiative of this nature is a testament to Mobitels continued contribution
towards enriching the lives of students, and in turn the nation, through technological advancements.
Ericsson Sri Lanka Head Denis Brunetti said: In recognition of Ericssons 20 year anniversary in Sri Lanka, and our
long standing relationship with Mobitel, we are extremely proud and honoured to again stand alongside Mobitel in
empowering the nation through the value of ICT. Ericsson and Mobitel share a like-minded vision and mission to realise
the nations smart society vision through the provision of accessible and affordable WiFi broadband services for
university students across Sri Lanka. This will be enabled through an innovative WiFi as a Service business
partnership between Mobitel and Ericsson. We believe that todays university students are tomorrows industry leaders,
and by investing in their education, we are investing in the nations future prosperity. This partnership further reaffirms
Ericssons ongoing commitment to Mobitel and the people of Sri Lanka.
This partnership builds on the Connect To Learn initiative that was launched in October this year between Mobitel,
Ericsson, Open University of Sri Lanka and the Commonwealth of Learning, which aims to empower teenage girls in
farming communities through an education in ICT.
Mobitel and Ericsson are jointly committed to engaging in strategic business partnerships of national interest that
contribute to the well-being and future prosperity of peoples lives in Sri Lanka.
http://www.ft.lk/article/379198/Mobitel-and-Ericsson-partner-to-drive-Sri-Lanka%E2%80%99s-smart-societyvision

Mobitel restores Nawagaththegama Regional Hospital Cs prenatal, postnatal and labour wards

The National Mobile Service Provider Mobitel recently unveiled the newly refurbished prenatal and postnatal units of the
Nawagaththegama Regional Hospital, along with the special labour ward which received a new facelift courtesy of
Mobitel. The refurbishment was carried out as a Corporate Social Responsibility (CSR) initiative for the betterment of
the people in the Nawagaththegama community, and to live upto the organisations brand promise, We Care. Always.
http://bizenglish.adaderana.lk/mobitel-restores-nawagaththegama-regional-hospital-cs-prenatal-postnatal-andlabour-wards/
Mobitel refurbishes Polonnaruwa school lab
As part of the Corporate Social Responsibility (CSR) initiative, Mobitel recently refurbished the computer lab at Royal
College in Polonnaruwa equipping it with new technology including WiFi. Here President Maithripala Sirisena is seen at
the opening with his brother P.G. Kumarasinghe who is the SLT Chairman, Mobitel CEO Ranjith G. Rubasinghe and
Royal College Principal Ravilal Wijayawansha
http://www.nation.lk/edition/business-tbl/item/40043-mobitel-refurbishes-polonnaruwa-school-lab.html

Mobitel hosts eventful day for orphanage in view of World Childrens Day
Mobitel in a special CSR initiative would host an eventful day complete with entertainment, food and gifts for
350 children in an orphanage in Killinochchi in view of World Childrens Day.
The Mobitel team would lend a helping hand on October 04th, to support the children of the Mahadeva Achchirama
Childrens Home who would receive an opportunity to watch the 3D cinema screening of the animated movie Frozen,
at the Cargills complex in Jaffna followed by lunch and refreshments. The children thereafter would be taken to the
children's park where they would get the chance to experience the fun and festivities of a carnival with adrenalinepumping rides such as the bouncy castles, the merry-go-round and other fun rides. Furthermore, a number of
competitions would also be carried out and the children would have the opportunity to take pictures at a photo booth set
up especially for them to treasure the memorable occasion.

http://businesscafe.lk/business-news/social-media-telecom/item/408-mobitel-hosts-eventful-day-for-orphanage-in-viewof-world-children-s-day