Effect of capacity management strategies on service quality in safaricom limited retail Outlets

Abstract

Effective capacity is an important concept in business operations. It leads to improved service quality in the operations within an organization and good relationships of the organization with its stakeholders. Capacity management involves planning, analyzing and optimizing capacity to satisfy demand in a timely manner and at a reasonable cost. The mobile telephony industry in Kenya is going through profound changes. There has been technological advancement from cable to wireless technology, regulatory restructuring and changing customer needs in the past decade that has transformed the Kenyan mobile telephony industry. These changes have put a strain on the provider’s ability to effectively provide service to its customers. Safaricom Limited is a mobile phone operator in Kenya that runs retail outlets across the country. It has applied several capacity management strategies in its operations especially at a time when it seeks to stamp its presence in most towns in the country. Though several studies have been undertaken by several researchers on effects of capacity management strategies, very few if any have been with regard to mobile telecommunication industry. Even then, such studies have not specifically been focused on the effects of capacity management on service quality and more so in telecommunication industry in which Safaricom retail outlets fall. This study therefore intended to determine the extent of adoption of capacity management strategies, factors influencing implementation of capacity management strategies and to establish the effect of capacity management strategies on service quality in Safaricom retail outlets. A correlation and a cross sectional survey study was designed in which the researcher used a questionnaire to collect both primary data and secondary data. A total of 36 respondents drawn from Safaricom retail outlets across the country participated in the study. Data analysis and report of findings was analyzed using descriptive statistics in the form of tables, frequencies and percentages while analysis of the relationships between independent and dependent variables was based on regression analysis. The findings showed that implementation of capacity management strategies by Safaricom limited at its various retail outlets throughout Kenya enhanced the provider’s quality of service provision. It is therefore recommended that management of Safaricom limited should consider putting in place steps to even better its quality of service provision. Though the findings showed that various capacity management strategies were in use at its facilities, it was evident that some elements of capacity management strategies investigated were still in their initial stages of implementation and therefore needs to be strengthened to help fortify their effects on enhancing the quality of service provision.