dc.description.abstract | The acquisition strategy is a growing phenomenon in Kenya today, this has been
embraced by many financial and technical based firms as a strategy of choice, it is
however still not a popular strategy as many firms seem to tread in care and may take
time to pursue the strategy, however, for those firms that have taken the risk, many
have succeeded in growing their market share as well as their revenue. This research
project was based on a study of the acquisition strategy used by Safaricom Ltd, and a
synopsis of how Safaricom acquired Onecom Ltd. It also established the reasons for
the acquisition strategy by Safaricom, the process of the acquisition as well as the
challenges faced in the realisation of the strategy.
The study established that the acquisition strategy was necessary for the firm to make
an immediate impact into the data market hence a competitive edge in its competition
with local Internet service providers, It was also found that the acquisition was the best
way forward in getting to launch different options of the service and have direct
product based competition with the Internet service provider firms. The research
findings indicate that the strategy if pursued for the right reasons can not only add
value to the acquiring firm, but also to the target firm, this is so because the target firm
employees could benefit from the expertise of the acquiring firm and learn new ways
of doing things. According to this study, findings indicate that the acquisition strategy
if correctly pursued can not only increase revenue streams of the mother company or
organisation, but also benefit the Kenyan citizens by empowering them from the use of
the products produced as a result of the acquisition, a good example is cited in the
Safaricom acquisition of Onecom which saw the emergence of cheaper fixed data
solutions that lowered the entry barrier for many small businesses and single owned
businesses, this therefore improves the country’s economic growth in one way or
another by empowering the smaller businesses to enjoy the benefit of such services | en |