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The working environment of any business is essential when determining its position. When determining the position of Safaricom in the industry, this is the crucial area that had to be analyzed. Safaricom, as indicated in the case study, has a significant impact on the country’s investment. As a result, Safaricom has a degree of assurance, making it easy to reach vigorous business features (M’Mbololo, 2016). Any organization’s marketing environment comprises various elements in business such as the microenvironment, the internal and external environment.
The general environment that Safaricom faces is discussed coupled with the different opportunities and threats that are likely to be met by the environment’s factors. Conducting a PEST analysis is critical in determining the various segments of the general environments relevant to Safaricom. The effect of the social, environmental, political, and technological environments on Safaricom Corporation are well highlighted using the PEST analysis. The political environment in Kenya is very stable. There have been few reported cases of political instability, making it possible for Safaricom to go about its business without any political influence (M’Mbololo, 2016). However, the government is involved in the business by making some tax regulations that are not exorbitant to the business. Safaricom’s services are highly charged, although the Bureau of Standards regulates some in Kenya.
The government also ensures that several positions on the market principles are closely monitored and controlled. The company is also positively by some economic factors, such as the trading economy. Kenya’s trading economy, both short and long terms, is very stable. This, in turn, ensures that the interest rates are stable. The company engages in many CSR activities such as sponsoring games and music occasions, ensuring that the company interacts with most of the communities in Kenya. As such, the country’s social-cultural elements have more positive effects on the company’s success since they feel included. The middle income earning families in Kenya are also key players in the expansion of Safaricom. Lack of education and the understanding of various products often limit rolling out different products, as was the case in South Africa when launching M-Pesa services (Otieno, 2017). Markets in East Africa where Safaricom dominates are made up of developing countries, and as such, they are not predictable and are characterized by uncertainties such as inflation and foreign exchange fluctuations. The general environment has also provided different opportunities and threats to Safaricom. Some of the opportunities available for exploitation include the wide market potential available in Africa, which is largely a developing continent. Moreover, since communication has evolved into a necessity rather than a luxury, the market is limitless.
The company should also venture into the global market while utilizing the M-Pesa platform, which increases the customer base’s scope. Some threats arise (M’Mbololo, 2016). They include the price wars and competition from companies such as Telkom and Airtel Kenya. There is also network congestion that arises from the large customer base the company serves. There are increased labour costs, lack of reliable basic amenities such as power, roads, and water, making the cost of doing business high in
Kenya.
The competitor environment often influences a company’s efforts in terms of marketing and affects the success of attracting the intended target market. In Kenya, Safaricom’s biggest competitor is Telkom Kenya and Airtel Kenya (Otieno, 2017). These companies compete to retain the customer base and to increase the subscriber base too. These companies either copy the service delivery technique or adopt different approaches to ensure that they maintain their market position. Safaricom is yet to put the competition at bay. The company requires to analyze the industry in which it operates to examine the competition better. There is a need for Safaricom to develop a reliable reputation, sell products at an affordable price, and also ensure that distributors and retailers stock their products.
The late Bob Collymore was titled the International Business Leader of the year 2016 at the CEO investment summit in New York. His strategic leadership involved venturing into new areas of growth, which led to business expansion. Diversification was also imminent. New products and services such as M-Shwari mobile banking and Lipa na M-Pesa payment services, together with the Okoa Jahazi disaster airtime solutions, were all developed in his era. As a result of these strategic moves, Safaricom was able to surpass its competitors by far. To consider the best course of action for Safaricom to expand its market, it is essential to consider several options and identify the most lucrative markets, strengths, weaknesses, and the intended strategies to be implemented. It is also possible to lessen the characteristic risks that the company may experience by ensuring planning is done appropriately, competent personnel are employed, and ensuring that all the required information technology and skills available are fully
utilized by the company (M’Mbololo, 2016).
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In summation, the company has various social, economic, political, and technological factors that affect its general environment. It is vital to ensure that all these factors are addressed to keep the company at the top of the chain. Moreover, there is a need to carefully examine strategies from competitors to come up with appropriate counter measures to maintain their competitive advantage and customer base. Finally, taking the recommendations on proper planning, employing competent employees, and continuously adapting to technological changes will ensure that the company maintains its brand name at the top and growth is observed in the company.
References
M’Mbololo, F. (2016, May 3). Safaricom Marketing Mix and Its Environment. Retrieved from
www.academia.edu: https://www.academia.edu/25084516/Safaricom_Marketing_Mix
Otieno, V. (2017, October 12). SWOT and PESTLE Analysis of Safaricom. Retrieved from
kenyayote.com: https://www.academia.edu/25084516/Safaricom_Marketing_Mix
