| dc.description.abstract | The aim of this study was to establish the strategies adopted by Multichoice Kenya Limited in
response to the information and communication technologies (ICT) convergence. The objectives
of the study were to determine the strategic responses adopted by Multichoice Kenya Limited
due to information and communications technologies convergence and to determine the rationale
for Multichoice Kenya Limited strategic response. To achieve this study adopted a case study
research design in which the organization of study was Multichoice Kenya Limited. Data was
collected by use of interview schedules. The data was analysed by use of content analysis.
The study has established that Multichoice has witnessed turbulence in its business environment.
Convergence has presented challenges to be overcome and opportunities to be exploited. There
has since been increased competition even from outside their traditional boundary due to the
lowering of prohibitive barriers to entry. Increased competition has seen Multichoice Kenya
realising drop in its profitability, loss of programmes right, price wars, increase in cost of
programme rights, loss of subscribers to competitors, and a decline in revenue from
advertisement due to the shift to advertise in the internet and mobile phones. Convergence has
also enabled the organization to use its single network to provide several communication
services which previously required separate networks. Increased competition has also created
awareness enabling the organization to grow it subscriber base.
Multichoice has reacted to the challenges by employing a local General Manager Mr. Isaboke
who understands better the business environment in Kenya due to his wealth of experience. The
organization has adopted strategies aimed at improving the customer satisfaction by acquisition
of high quality programmes and technology. The study established that Multichoice Kenya has
increased its distribution channels to reach and attend to its client’s problems. The organization
set a research department to carryout research on business environment and advice on the
strategies to adopt. The organization formed strategic alliances with KBC and Safaricom and
provide mobile television. They have continuously introduced new products for different market
niches. They have pursued a broad product lines to deter entry. Vertical integration into
programme development has enabled it to hold premium programmes from its competitors. In
promotion strategies, advertising expenditures has increased considerably with the use of variousadvertising media. Diversification has enabled the organization to venture in new business
creating new revenues from merchandising, sponsorships, rights trading, interactive and cross
platform activities. In social responsibility, there has been a move by the organization to be
more caring to the local communities through such things as donations to the needy, talent
development and sponsorships etc. Pricing initiatives have also been enhanced. Study also
reveals that the strategies adopted are fundamentally relevant in overcoming the challenges and
exploiting the opportunities that technological innovations in the ICT sector has presented | en |
