Challenges of Innovation Strategy: a Case Study of M-pesa Product Introduced by Safaricom

Abstract

Safaricom has emerged as one of the key telecommunication companies that have taken up innovation strategy and this study specifically zeroed in on the organization. The aim of the study was to establish the various challenges that Safaricom has experienced in pursuit of the innovation strategy through introduction of M-PESA services. The study has also mentioned how the company handled some of the challenges it encountered while implementing the innovation strategy. Data was from four top managers at Safaricom from the various business lines. These managers have been part of the team that has and is still implementing the innovation strategy. The data was then analyzed using content analysis techniques. The results of the study showed that competition is a major challenge and driving force for innovation at Safaricom. The results also showed that changes in the external environment affect the organization’s survival in the market. The limitation of the study is that it was conducted exclusively on one mobile service provider. A further study should be conducted to establish whether innovation at Safaricom is sustainable in the near future with the entry of competition in the transactional money service space by other providers