Determinants of Application of Decentralization Strategy at Safaricom Limited

Abstract

The study sought to establish the determinants of decentralization strategy at Safaricom limited. As competition increases in telecommunication industry companies are coming up with innovative ways to ensure customer needs are met in a more effective way. Through an interview guide, data was collected using questionnaire and sent to Safaricom staff both mid-level staff and lower cadre. The methodology used is research design, data collection and data analysis. The analysis showed quicker turnaround in decision-making means more effectiveness in handling competition and other external threats which might harm the business. Decentralization in Safaricom has ensured the firm’s strengthened response mechanisms to customer needs as well as enable the firm localize products and services based on regional needs. The challenge however with this approach is lack of uniformity and harmonization of services and products offered at each region. Unhealthy competition within the organization can also be witnessed among regions even though the overall company objective is the same. In conclusion, the successful implementation of the strategy is influenced by both internal (firms size, structure, technology) and external (competition, regulations, industry) determinants. Key recommendations is that the structure should be customer centric, market driven and suitable to specific markets