| dc.description.abstract | The study set out to investigate the challenges faced by Safaricom limited due to increased
competition and the responses adopted by Safaricom limited to increased competition in the
mobile phone service industry. As a result of liberalization, competition for markets has
emerged which has led to privatization of state enterprises to prepare them for effective
competition. Privatization of state telecommunication enterprises has started off in most
countries in the region. The competitive forces reveal the drivers of industry competition. At
the same time, thinking comprehensively about an industry’s structure can uncover
opportunities: differences in customers, suppliers, substitutes, potential entrants, and rivals
that can become the basis for distinct strategies yielding superior performance.
This study adopted a case study design which was the most appropriate in the investigation
of the responses of Safaricom Limited to increased competition. The study selected
informants who are in senior management at Safaricom Limited. They were subjected to the
study through an interview guide which collected primary data. Secondary data was collected
from published reports, the mobile phone industry’s publications, periodicals and
newspapers.
The greatest competitive factor affecting the firm’s performance was shown as the
enforcement of new communication regulations. These include licensing, subscriber
registration, and mobile number portability. They also cited the environment as a major
factor given the nature of competition in the industry. Other factors indicated by the
informants were capital requirement, training of the employees, product range, innovation,
technology, customer service, network coverage, corporate image, level of service, location,
viii
target market, product marketing, distribution channels and competitors. Safaricom Limited
has responded to challenges of increased competition in key service areas through reviewing
of it charges leading to a drop in call tariffs and introduction of group charges. It has
continually offered new affordable internet bundles with a wide range fitting every
customer’s need and has advanced to new technology such as increasing its 3G footprint and
developing the 4G network. It has responded to strengthen its brand with active involvement
in community service responsibilities as well as aggressive marketing and promotional drives
all over the country.
These study findings have to be viewed in account of the following shortcomings that
occurred in the course of the conduct of the study. The respondents studied in this research
were from one company and conclusions drawn from this study may not be representative
and therefore they cannot be generalized to other firms. The study also only captured the
members of one focus group thus excluding other important stakeholders like the members of
the public and regulators from giving their views.
The following are suggestions of further studies that can be carried out. The study should be
extended to establish the responses adopted by firms in other industries. Research should also
be undertaken to determine what strategies other companies in different related industries use
to build competitive advantage. | en |
