Effect Of E-Business Strategy On Competitive Advantage Of Safaricom Limited, Kenya

Abstract

The study sought to establish the effects of e-business strategy on competitive advantage for 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 while keeping the costs low and growing revenues. Through an interview guide, data was collected from e-vendor managers, marketing manager in Safaricom limited and finally a focus group comprising of enterprise business managers at Safaricom limited, dealer vendors and merchants. The methodology used is research design, data collection and data analysis. The analysis showed e-business strategy enabled quick turnaround in decision-making delivering more effectiveness in adapting to changes in an unpredictable business environment comprising external threats that might harm the business. E-business strategy in Safaricom limited has ensured the firm’s strengthened response mechanisms to customer needs as well as enable the firm localize products and services based on regional customers’ needs. The challenge was requirement of uniformity across Safaricom limited and all Vendors in usage of electronic technologies on the e-vendor platform and harmonization of services and products offered by each vendor. Logistical challenges in delivering products ordered online by customers across the regions remains an area that needs improvement. In conclusion, the successful adoption of the e-business strategy is influenced by both internal integration (Safaricom’s human capital, Digital organization and supplier integration system control.) and external diffusion (Quick decisions, Electronic integration, Active customer support) variables. Key recommendations are that adoption of e-business strategy must consider the internal and the external elements. When adopted perfectly, it gives rise to competitive advantages on financial terms and other non-financial competitive advantages that ensure survival in a volatile changing business environment. These are differentiation, enterprise agility, relationship development and partner attraction.