Case Study #14—Safaricom
Read the case study attached and report in a Microsoft Word document concerning the following situation:
The Safaricom case provides an excellent opportunity to apply strategic management concepts to a constantly growing and extremely competitive organization. Safaricom is the largest mobile service provider in Kenya. It offers not only means of mobile communication, but also is involved within the community. In addition, Safaricom sponsors athletic events such as Safaricom Sevens and a music festival, Niko na Safaricom Live.
The purpose of this case study is to examine the factors that are crucial to Safaricom’s continued success and to propose strategic actions to sustain its competitive advantage. While Safaricom’s community involvement enhances its brand image, the mobile service sector of Safaricom is the largest and main focus. Safaricom was formed in 1997 and has grown to be the largest mobile service provider in Kenya by implementing different strategies, including acquisitions.
The analysis should start with a scan of the general, industry, and competitive environments. How does the external environment in Kenya differ from anywhere else? The case also describes Safaricom’s competitive advantage, and the effectiveness of its strategies against industry rivals should be examined. Safaricom offers different services such as prepaid mobile, voice and data services, and its voice packages are bundled with other services such as rewards programs, music, and games. Finally, the pressing strategic concerns, the effectiveness of Safaricom’s leadership should also be considered to devise convincing recommendations.
This case is ideal for demonstrating the importance of the external environment, competitive rivalry, and strategic leadership. The following points are to guide a review and discussion of these important concepts.
Your report and overview should address the following key strategic issues:
- Describe the general environment that Safaricom faces. What are the segments in the general environment that relate to Safaricom’s situation? What are the opportunities and threats derived from the factors from the general environment? What are the possible future implications of some of the external factors?
- Analyze the competitor environment and identify the competitors. Has Safaricom done enough to outperform its competitors?
- Evaluate Safaricom’s CEO, Robert Collymore’s strategic leadership. Has he been able to fulfill his responsibilities and continue to grow Safaricom as a company?
- Describe Safaricom’s next move in terms of growth and expansion. Based on your analysis, what additional recommendations would you make to help Safaricom achieve its goals?