| dc.description.abstract | Since the introduction of M-pesa in Kenya, those registering for the service currently averages 10,000 per day. This service has been a threat to the mainstream banking industry in Kenya too. With its success story, it is important to establish the operational factors influencing its success. The study sought to establish the operational strategies used in mobile banking in Kenya with a specific reference on Safaricom's M-Pesa service. This was an embedded case study.
The target population for the study was 15 Safaricom company managers as well as 4200M-Pesa agents across Nairobi. A sample of three managers and 41 agents was selected. The primary data was collected using interview guides and questionnaires. The collected data was analyzed using qualitative as well as quantitative methods.
The study found that the challenges were unreasonable commissions (mean = 3.03, SD = 1.04537), and flexibility (mean = 2.9412, SD = 1.43424). The study concludes that Safaricom uses three distinct strategies: defensive, offensive, and innovation as operations strategies. The study recommends that the company should consider competing as a low cost leader in order to capitalise on the market share it has currently.
The study recommends that the company should be more aggressive now that the market is not a monopoly as before. More partnerships with commercial banks need to be entered into so as to increase the accessibility of floats for use by M-Pesa agents as sometimes the customers are not served because of float issues. | en_US |
