Competitive strategies of safaricom in the mobile phone markets : the case of Kenyatta University

Abstract

The success and survival of organizations depends on how well it relates with challenges and how well it positions itself to the external environment. Safaricom is a mobile phone service provider. With competition coming from Celtel and Telkom Kenya Limited the operators try to outmanoeuvre each other. The major factors of competition in the industry revolve around building subscriber base and retention of customers. This study was intended to focus on Safaricom company efforts towards creating strategies it can use to gain competitive advantage. With each service provider coming up with different approaches to product and market positioning, marketing and servicing they copy one another's strategies. The consumer is better educated, more inquisitive and demanding while the marketing environment has changed thus nosing serious challenges to survival and profitability of the firm. The study was conducted in Kenyatta University, which was purposively selected due to Safaricom customers with diverse needs and educational levels. The objective of this study was to identity strategies used by Safaricom, how the company structures its market to cope with competition, identify Safaricom product features that enhance consumer satisfaction and identify services that consumers would want availed to them that are not offered by Safaricom. Findings indicate that customers were content with the services and products available to them but wanted them constantly improved to match the changing technology and to adopt to the global changes and also wanted to be informed on how to use the new products when introduced in the market.