Positioning Strategies On Mobile Money Transfer At Safaricom Limited

Abstract

Organizations that operate in an industry with more than one firm face substantial competition if not fierce competition. Firms, therefore, seek to outperform their rivals by using strategies such as positioning strategies. The objective of this study was to assess the positioning strategies on mobile money transfer business at Safaricom Kenya Limited. The research design was a case study. It utilized primary data which was collected via an interview guide which contained a set of questions to be asked while interviewing managerial officers in charge of marketing, finance, human resources, business development and research division. Collected data was analyzed through content analysis. The study findings revealed that positioning strategies used by Mobile Money transfer business at Safaricom Kenya Ltd include focus; differentiation, low cost and differentiation focus strategies. It uses differentiation focus to its customers. For example, Safaricom selects a market niche and focuses its service. The study further deduced in comparison that Safaricom Kenya Ltd does not use low cost strategy. Safaricom Kenya Ltd does not charge its customers for sending or withdrawing a hundred shillings, a strategy that is also used by its competitors. However, the study established that Safaricom Ltd use focus strategy most. The company concentrates in understanding customer needs and carries out continuous research and innovations to meet this need. Safaricom has further build a strong brand M-pesa, which has become difficult for competitors to imitate. Safaricom has tailored its M-pesa brand with contents that interest customers which has built customer loyalty.The study further established that Safaricom Kenya Ltd mobile money transfer face challenges in experience to implementing focus strategy on mobile money. The Company need experts and resources and the process of implementation is also complex requiring marketing research to understand the needs and requirement of the customer and the environment at large. This is a very expensive exercise to carry out because it requires a huge amount of initial capital. From the findings, the study concludes that Safaricom Kenya Ltd use focus, differentiation, and differentiation focus strategies. The study recommended that Safaricom should engage in cost leadership strategy in providing Mobile money transfer services, take advantage of the opening up of the regional market as a result of the East Africa Community and finally evaluate its positioning strategy continuously to enable it remain relevant in the ever growing competing environment.