Responses of safaricom limited to changes in the telecommunication industry in Kenya

Abstract

This research study is a case study carried out on Safaricom Limited, which is the current market leader in the Telecommunication industry in Kenya. The research study is carried out to identify the key challenges Safaricom Limited is experiencing due to the changes in Telecommunication industry in Kenya and to determine how the organisation is responding to the changes. The liberalisation process in the Telecommunication industry in Kenya introduced duopoly in mobile communications, and entry into the market by a number of other players using wireless technology innovations. The research project was conducted by collecting primary data using unstructured questionnaires by carrying out in-depth direct interviews of the senior management from across all the business divisions of Safaricom Limited. The report contains in-depth analysis and interpretation of the data, identifying key competition, technological and policy challenges posed by the changes and the strategic, operational and tactical responses to these changes. The findings of the study reveal that the organisation is facing intensive competition which results in promotional and price wars, technology innovations to support new products and services, to meet the changing customer needs. The findings show that the government policy changes create unlevelled playing field, opening up the market for new competitors with more capital resources through further liberalization and privatization, and demanding more contributions to corporate social responsibility, and allowing new entrants to provide both fixed line and mobile phone services. The organization and other players respond by lobbying the government to create level playing field.