Factors influencing the competitive advantage within the communication sector in Kenya: case study of telkom Kenya (orange)

Abstract

The industry in Kenya is going through profound changes. In the past decade, technological advancement and regulatory restructuring have transformed the industry. Markets that were formerly distinct, discrete and vertical have coalesced across their old Boundaries with a massive investment of capital-much of it originating from the private sector participants. A telecommunication policy statement was issued in 1997 that set out the Government vision on Telecommunication development to the year 2015. The challenge at that time was to transform The existing policy structure from one designed for a monopoly to a policy managing a liberalized telecommunication market. In 1998/99, the Government launched the telecommunication sector reform and introduces competition in certain market segments while at the same time disbanding KP&TC. (Kenya Post and Telecommunication). One of the immediate goals of the telecommunication sector reform was to increase Telecommunication supply. This has been witnessed in high growth in all areas that were open For competition the result is new markets, new players, and new challenges. Telkom Kenya despite its strong foundation is not performing as well as it should. It is operating in a market which is experiencing increasing competition. Despite heavy information technology Investment they are not realizing business value. However given proper strategic planning Telkom (Orange) could turn around and become a Profit making company and acquire chunk of the market share. This study will investigate the opportunities open to Telkom Kenya and how best they could be exploited.