Dhiraagu SWOT & PESTLE

  • Report

  • ID: 532240
  • 19 Pages
  • June 2023
  • Region: Asia
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About Dhiraagu

Dhiraagu is a Maldivian telecommunications and digital services company that provides a wide range of mobile, internet, data, fixed-line, and television services. The business was established in 1988 and is headquartered in Male, Maldives. It provides telecommunications services in the Maldives, with over half a million subscribers and 99 per cent trained certified Maldivians working in 10 strategically situated operating centres across the country. Through the nation's largest retail and distribution network of 49 exclusive partners, 27 wholesalers, 40 distributors, 182 agents, 8 international agents, and over 3,800 retailers across the country, the company can overcome geographic obstacles and stay near to its clients. Dhiraagu has one of the world's longest microwave-over-water links. Fuvahmulah and Gaafu Dhaalu – and hence Gaafu Alifu atoll – are linked via a 65-kilometre equatorial link. As of 2023, the company leverages the talent of 430+ full time employees.

Dhiraagu's USP lies in it being Maldives' leading and largest telecommunications and digital services provider, offering a full variety of mobile, internet, data, fixed-line, and television services. The mission statement of the company reads, "Our business is to inspire and empower our customers to 'take on tomorrow' and thrive in the digital future".

Business Sector

Telecommunication

Operating Geography

Maldives, Asia, Global

Revenue

MVR 2.6 billion - FY ending 31st December 2022 (y-o-y growth 2.3%)

MVR 2.5 billion - FY ending 31st December 2021

SWOT

SWOT Matrix for Dhiraagu

Strength

Weakness

  1. Largest telecom provider in the Maldives
  2. First in Maldives and South Asia to launch 5G commercial services providing it first mover advantages.
  3. The company offers a wide variety of products and solutions.
  4. First and only digital IPTV service provider in Maldives
  1. The company only offers its services in Maldives.
  2. The growth in the financials of the company has been stagnant

Opportunity

Threat

  1. The successful completion of the Maldives-Sri Lanka Submarine Cable will help improve internet experience.
  2. The company completed 87% coverage on Dhiraagu Fibre Broadband Network increasing its market share.
  3. The growing digital adoption after the pandemic has unlocked new growth opportunities.
  4. Transition to a cashless economy providing opportunities for DhiraaguPay to increase its sales.
  1. Reduction in the tourism sector due to the pandemic can negatively impact revenue
  2. Changes in government regulations can affect the operations of the company

Detailed SWOT Analysis of Dhiraagu

The detailed SWOT analysis for Dhiraagu is presented below:

Strength

  1. Largest telecom provider in the Maldives: Dhiraagu is the leading telecommunications and digital services company in the Maldives. The company overcomes geographic barrier within Maldives and tries to stay as close to its customers. It has a distribution network of 57 partners, 28 wholesalers and more than 3500 retailers. The company provides the largest coverage in the Maldives including all the 187 inhabited islands of the nation, all resort islands and majority of the industrial islands. The company has linked Maldives from the North to South through a 1253 km long fibre optic submarine cable network in order to support the nation’s largest 3G and 4G LTE and fixed broadband network. Additionally, the company has over 500,000 customers and employs 99% trained qualified Maldivians in 11 strategically located customer service centers across the country.

Weakness

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Opportunity

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Threat

  1. Reduction in the tourism sector due to the pandemic can negatively impact revenue: Dhiraagu plays an important role in driving the tourist experience in Maldives. Maldives is a tourist driven nation and depends on tourists for its economic activities. Dhiraagu also depends on the tourists for its business and on various enterprises that provide services to the tourists. During the pandemic most of the nations closed their boundaries and did not allow tourists. The tourism industry came to an abrupt halt in March 2020 when international borders were closed. As a dependable partner, Dhiraagu helped the tourism industry by allowing datacom service downgrades and temporarily suspending a number of monthly subscription services. The corporation offered free DhiraaguTV and more mobile data allowances to the patients and workers at those institutions when resorts were transformed into quarantine facilities. This affected the business growth of Dhiraagu and similar instances in the future may also cause disruptions in the services of the company. Covid cases are rising in some parts of the globe and may continue to affect the global economy in the future.

PESTLE

PESTLE Matrix for Dhiraagu

Political

Economic

  1. The SMW6 consortium aims at laying around 19,200 km of sea cables connecting south east Asia to Europe
  2. A new National Payment System act was introduced in Maldives in 2021
  1. Fluctuations in exchange rate impact the costs and revenues.
  2. The tourism industry in Maldives has recovered to the pre-pandemic levels.

Social

Technological

  1. Increased willingness to adopt new technology leading to acceleration of digital economy
  2. Shifting to digital classrooms due to covid-19 restrictions leading to increased demand of the company’s solutions
  1. 5g technology is going to change the way of the world
  2. Use of threat intelligence and machine learning to inform customers on real time basis

Legal

ENVIRONMENTAL

  1. An amendment made to the broadcasting act in Maldives restricts companies with foreign shareholders from broadcasting rights
  1. Committed to low emission carbon resilient business practises to reduce carbon footprint

Detailed PESTLE Analysis of Dhiraagu

The detailed PESTLE analysis for Dhiraagu is presented below:

POLITICAL

  1. The SMW6 consortium aims at laying around19,200 km of sea cables connecting south east Asia to Europe: An undersea cable system connecting several nations between Singapore and France is being built, and it will be 19,200 km long. It is being built by the Southeast Asia-Middle East-Western Europe 6 (SEA-ME-WE 6) consortium. With a transfer rate of more than 100 gigabytes per second, or 40,000 high-definition films per second, SEA-ME-WE 6 will have one of the lowest latencies accessible between Southeast Asia, the Middle East, and Western Europe. Bharti Airtel Ltd. (India), Dhiraagu (Maldives), Djibouti Telecom, Mobily (Saudi Arabia), Orange (France), Singtel (Singapore), Sri Lanka Telecom, Telecom Egypt, Telekom Malaysia, Telin (Indonesia), and Trans World Associates (Pakistan) are all members of the SEA-ME-WE 6 consortium. Dhiraagu's investment in SMW6 will link the Maldives to the global information highway, enhancing the company's digital infrastructure and assisting in the development of the Maldives as a major digital hub. Additionally, it will help Dhiraagu's internet services run more smoothly, with higher quality, and at a lower cost.

ECONOMIC

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SOCIAL

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TECHNOLOGICAL

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LEGAL

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ENVIRONMENTAL

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More Info

Major Competitors

  • Ncell
  • 8*8 UK
  • EE
  • Huge Telecom
  • Socar Cape LLC
  • NU
  • Tunise Telecom
  • Bouygues Telecom

Table of Contents

  • Company Overview
    • 1.1 About the Company
    • 1.2 Business Sector
    • 1.3 Operating Geography
    • 1.4 Revenue
  • SWOT Analysis
    • 2.1 SWOT Table/ SWOT Matrix
    • 2.2 SWOT Overview
    • 2.3 Detailed SWOT Analysis
    • 2.4 Strength, Weakness, Opportunity and Threat
  • PESTLE Analysis
    • 3.1 PESTLE Table/ PESTLE Matrix
    • 3.2 PESTLE Overview
    • 3.3 Detailed PESTLE Analysis
    • 3.4 Political, Economic, Social, Technological, Legal and Environmental
  • Appendix
    • 4.1 Major Competitors
    • 4.2 Business Sectors / Diversification
    • 4.3 References used to prepare this reports
  • Conclusion
    • 5.1 Closing thoughts
    • 5.2 Methodology used to prepare this report
    • 5.3 Copyrights and Disclaimer

    References and Copyright

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