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?
Answers
Explanation:
Safaricom Ltd. was formed as a private limited liability company (LLC) in 1997 and became a publically traded company in 2002. The original company was 60% owned by the Government of Kenya. 4 In 2000 Vodafone acquired a large stake in the company through Vodafone Kenya Ltd, a locally owned subsidiary. 5 In 2008 the Government of Kenya sold enough shares to the public to lose its majority interest. 6 There are a total of 40 billion shares outstanding, which are owned by 698,863 different investors as of March 31, 2013. Of those shareholders, 61.2% own less than 1,000 shares. The top two shareholders, Vodafone Kenya Limited and Permanent Secretary – The Treasury, now own just over 75% of the company. As of October 18, 2013, 52 institutional investors owned only 2.3 million shares, or 5.86% of the remaining shares. 7
Safaricom has grown through a variety of strategies, including acqusitions. In 2008, Safaricom purchased a majority stake in One Communications Ltd. in order to gain access to its data services. 8 The company has also made several other small acquisitions to enhance its services and market share. 9
omotion.
Strategic Priorities
Safaricom has identified its intent to transform the lives of its customers, shareholders, business partners, staff, and the communities Safaricom serves. The company has defined the following strategic priorities:
· 1. Deliver the ‘Best Network in Kenya’
· 2. Grow mobile and fixed data
· 3. Deepen financial inclusion
· 4. Retain and reward the loyal customer base
· 5. Encourage further innovation. 35
Under its “Best Network in Kenya” initiative, Safaricom has worked to increase 2G and 3G coverage, modernize the network in six key cities, roll-out fiber in 40% of sites in Nairobi, increase speeds, deliver value-based pricing, lower the pricing of 3G smartphones, and improve customer services. Other actions include: upgrading old cell sites, reducing the number of dropped calls, decreasing network downtime, and broadening the reach of their telecom services. Although improvements in network quality are a tremendous opportunity, there is some risk, including the risk of vandalism leading to service disruption, general security, especially in northeastern Kenya, energy availability and reliability, and M-PESA service delays. The instability of the Kenyan national energy grid and lack of energy grid availability in some rural or isolated parts of the country limits growth
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