| dc.description.abstract | Strategies are adopted by organizations in order to achieve a more favorable position. The
current high level of competition amongst businesses necessitates organizations to
implement sound strategies to remain competitive. To adopt effective strategies,
managers in an organization need to be aware of realities in the business environment.
Strategy adoption thus begins with scanning of the external as well as the internal
environment of the organization. The number of mobile operators with live operations in
Africa (excluding mobile virtual network operators), rose by more than 10%, from 158 in
the first quarter of 2008 to around 175 at the end of 2010. Airtel intended to replicate its
low cost model in India in the African market and rolled out a number of strategies to
augment its place in the telecommunication sector. Key among these strategies were; the
3G mobile service, Outsourcing, Airtel‟s Tower sale and lease back, as well as Mergers
and Acquisitions. This study sought to establish the strategies adopted by Airtel Africa in
enhancing its performance, as well as to determine the relationship between the strategies
employed by Airtel Africa and its performance. This study adopted a case study design
aimed at getting detailed information regarding Airtel Africa‟s different strategies and its
effects in enhancing its performance. The case study design was preferred because it
allowed the researcher to place more emphasis on a full contextual analysis of fewer
events or conditions, and their inter-relations. Data was collected using both primary and
secondary means. Primary data was collected from respondents using an interview guide.
The interviewees consisted of senior staff involved in strategy formulation and
implementation at Airtel Africa headquarters, in Nairobi. Secondary data was collected
from relevant published materials both in print and online. Content analysis was then
used to analyze the data as per the objectives of the study. Based on the findings, the
study concluded that 3G strategy had led to an increase in the data footprint, customer
acquisition, retention and drive, as evidenced by increase in subscribers; an increase in
data revenue, an increase in customer market share growth, revenue diversification,
amongst others. The study noted that Sale and Leaseback of towers had led to
improvements at Airtel Africa in relation to; debt reduction resulting from the proceeds
of the sale, balance sheet optimization, cost reduction overtime and capital release to fund
new investments in marketing and product development. In addition, the study concluded
that Outsourcing led to operating cost reduction, by using an effective and experienced
tier 1 company, management of the subject matter expertise portfolio, and increased
efficiency through exemplary performance by outsourced staff at Airtel Africa. It was
further concluded that, Mergers and Acquisitions within Airtel Africa had led to
increased customer market share and profitability, shareholder value, as well as company
and brand enhancement across Africa. This study recommended to all mobile operators
currently operating in the country to imbibe the culture of employing competent vendors
for their outsourcing jobs and should re-invest or plough back most of their profits into
their businesses so as to improve their present infrastructural roll out. This will enhance
good quality network services throughout the country as well as easy accessibility in rural
areas of the country. The researcher encountered quite a number of challenges related to
research and most particularly during the process of data collection. Some interviewees
were very cautious about the information they were sharing and thus did not give
information considered as confidential. | en_US |
