Response Strategies of Safaricom Limited to Macro Environmental Changes

Abstract

Organizations operate within an external environment. Firms can only prosper if they are well aligned within the external environment. There are major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies (Johnson and Scholes, 2002). The alignment between strategy and environment lies at the centre of strategic management. Despite the many difficulty challenges to the business, including economic and political instability, competition has really enhanced especially from the telecommunication industry. This study is about how Safaricom is employing strategies to respond to macro environment changes. The research was conducted through a case study. Case study has been chosen as it enables the researcher to have an in-depth understanding of the study. A case study design is most appropriate where a detailed analysis of a single unit of study is desired as it provides focused and detailed insight to phenomenon that may otherwise be unclear (Mugenda and Mugenda, 2003). The study found out that .competition, technology, poverty among the community and globalization prompted Safaricom into adopting strategic responses. Safaricom had the capability of reducing the office expenses to maximize on profits. It was able to introduce a range of products. Safaricom faced challenges m responding to its changing environment. Introduction of technology proved to be expensive thus lowering the profits. The study found out that strategic responses affected the performance of the firm. Safaricom was able to increase their profits due to the high sales obtained...........................................................................