An Analysis of the Kenyan Mobile Phone Marketplace Essay

A great Analysis in the Kenyan Cellphone Market

Publisher: Kevin Singh

CONTENTS

QUESTION1: EVALUATION OF THE KENYAN MOBILE PHONE MARKET3

1 . 1COMPETITION3

1 . two TECHNOLOGY4

1 . 3 FOREIGN TRADE POLICY5

1 . 5 ECONOMY7

PROBLEM 2: ACCOMPLISHMENT OF SAFARICOM AND LESSONS FOR OTHER FOREIGN MOBILE PHONE CARTELS AND VENDORS8 installment payments on your 1PEOPLE8

2 . 2 PRODUCTS9

2 . a few CUSTOMER SERVICE9

2 . four CONTINUOUS IMPROVEMENT9

2 . 5 SOCIAL INVESTMENT9

2 . 6 CONCLUSION10

ISSUE 311

several. 1 THE POSSIBILITIES OF SAFARICOM BURNING OFF COMPETITIVE BENEFITS BY NOT REALLY CUSTOMIZING PRODUCTS11

3. 2THE STRATEGY THAT SAFARICOM NEEDS TO ADOPT TO CUSTOMIZE USANA PRODUCTS FOR THE LOCAL KENYAN CELLPHONE MARKET12 three or more. 2 . 1Affordability12

3. 2 . 2Market Research13

3. installment payments on your 3 Worth Adding Services14

3. installment payments on your 4 Client Relationship Management14

Q4: HOW SAFARICOM FLIPPED THE POOR INTO ENTREPRENEURS AND VALUE MINDFUL CONSUMERS15

REFERENCES18

Question1: Examination of the Kenyan Mobile Phone Market

1 . 1Competition

Traditionally exploration by the Massachusetts Institute of Technology (MIT), (2008), implies that, "[the range of ] subscribers in developing countries… now symbolize (s) nearly all 2 . 5 billion cellular phone users worldwide”.

The Kenyan mobile phone companies are no exception and has been identified as being one of the quickest growing industrial sectors in Kenya (Karobia, C, (2006)). As competition is generally related to the provision and demand of products, the following graph is usually presented:

Figure1: Fixed Collection Subscribers vs Mobile Phone Subscribers (Source: UBER 2008)

Determine 1 demonstrates that from year 1994 until 2005 the number of fixed line clients has been reasonably constant with very little growth. The number of cellphone subscribers nevertheless has exponentially grown via early 1998 until 2004. According to statistics by MIT (2008) prior to 06 1999, Kenya had 15000 mobile phone readers and by the conclusion of 2004, the number of subscribers had expanded to 3. four million. Merely 18 months after at end of September 2006 the amount of mobile phone readers was recorded since 5. six million. Evidently the portable industry is one of the faster growing sectors near your vicinity when 1 considers that only 200 000 households possess electricity (MIT, 2008). Of course that the demand for mobile service providers and mobile products in Kenya offers resulted in the uprising of recent mobile phone businesses.

In accordance to Schiller, B (2006: 477), " a duopoly is a industry structure through which two companies supply the complete market”. A duopoly is often formed when there are large barriers to entry and quite often results in considerable control of the cost and standard or differentiated products. Thus the Kenyan mobile market is a duopoly with Safaricom (owned simply by Telkom Kenya with a 40% stake by Vodafone) at the moment holding 84% of the portable market share plus the remainder staying held by simply Celtel (owned by Kuwaiti Mobile agent MTC) (Saturday Nation, 2008).

From the market share of 84%, Safaricom is obviously the dominating market innovator. In 2009 on the other hand Econet Kenya (owned by simply Indian Essar) and Telkom Kenya (51% owned by France Telecom) will also join the Kenyan mobile industry (Saturday Country, 2008). Arsenic intoxication the new marketplace entrants should result in the development of an oligopoly if they are in a position to grant products for similar prices.

However , research by Morgan Stanley, because cited by the Saturday Country (2008), claims that,

" the competition should not be a great threat to Safaricom [and are confident that] with over 80 per cent business, …[Safaricom] is definitely well positioned to enjoy the growth in mobile phone utilization in Kenya, despite having two new operators signing up for the market last season. ”

The competition however give a different judgment and are confident that they can present products for competitive prices with the aim of claiming a stake of the extremely high growth mobile industry in Kenya. The stage is therefore set pertaining to fierce competition among Portable service providers in Kenya with...

References: Creator Unknown, 2006, Safaricom's Success, Accessed On the net from http://bankelele.blogspot.com/2006/08/safaricom-success.html

Author, Unknown (2008), Safaricom Likely to Keep Lead, Sat Nation, Accessed online coming from: http://www.nation.co.ke/News/

Hills, C(2007), International Business, 7th Edition, McGraw-Hill Irwin, New york city.

Karobia, C, (2006), Kenya mobile businesses seek running around advantage, BBC News, Seen online by www.bbc.co.uk

Kotler, P and Keller, E. L, (2006), ”Marketing Management”, 12th Release, Pearson Education, Inc., Top Saddle Riv, New Jersey

Laudon KC and Laudon JP, (2006), Handling the Digital Firm, ninth Edition. Higher Saddle Riv, New Jersey.

Lehr, D, 2005, Cell Phone use changes your life in Africa, Associated Press, Accessed On the net from http://fellows.rdvp.org/davidlehr

Prause, Stephanie, (October 2006), " The case Value of Market Research”(online), NZB.

Obtainable from: http://www.nzbusiness.co.nz

Schiller, Ur, 2006, Economic climate Today, tenth Edition, McGraw-Hill Irwin, New York.

Van Vuuren, H, 2002, Corruption, Notion and Foreign Direct Investment-Counting the cost of graft”, Vol 10 No a few, Published inside the African Reliability Review.

Wagacha, M, 2008, Kenya's Transact Policies: Mainstreaming Strategies In National Creation, Optimum International (ORI).



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