| dc.description.abstract | Organizations are open systems, they depend on the environment for resources and
also to discharge their outputs. More importantly they operate in an environment of
change. This means that they have to proctively monitor the changes in their business
environment which has become very competitive, volatile and more importantly
unpredictable and align themselves accordingly. It is the environment in which
organizations operate which shapes them and influences their choices of the strategy
and determines their performance.Gone are the days when organizations used to sit
and wait for customers, customers now have a choice and they value quality products
and services. Companies require strategic thinking and only by evolving good
business strategies can they become strategically competitive (Ansoff and McDonnell
2009). Kenya’s mobile money industry is a major playe in the Financial Services
Sector of the Kenyan Economy. This study used a case study approach to investigate
the strategic responses by Safaricom Limited Kenya to the dynamic business
environment. Data was collected using an interview guide which was admistered by
face to face meetings with the respondents namely; The General Manager, M-PESA
services, and the functional head of Safaricom Limited who include; Head of Strategy
and Innovation, Head of Network Operations, Head of Product Development, Head of
M-PESA Operations and Head of Human Resources. In total 12 face-to-face
interviews were conducted. The qualitative data collected was analyzed using content
analysis technique. The study identified that one of the major challenges within the
mobile money industry was poor regulation and lack of prudent governance
framework. The study recommends that the regulation within the industry should be
improved and a collaborative approach used. There is also need to ensure there is
transparency and ethical practices within the sector and the government bodies
charged with over-sight authority. This will be useful in driving investor confidence
and for the long term sustainable growth of mobile money products and the industry
generally. The adoption of strategic responses by Safaricom Limited has ebabled it
mantain tis market share. The findings from the study indicates that the company uses
an innovative and collaborative low costs strategy model to market its M-PESA
products so as to gain competitive advantage. The company also ensures that the
products, processes and operations are safe for the environment and targets to reduce
energy usage and related greenhouse gas emissions, conservation of water, reduction
of waste and exploration of opportunities for reuse and recycling in driving the
sustainability agenda. The upholding of ethics and values that promote integrity and
highest ethical business practices are promoted and encouraged within the Safaricom
staff. This promotes sustainable practices within the business ecosystem especially
within then the distribution channel that is directly response for providing M-PESA
retails services. Although the company has managed to differentiate themselves from
other players in the market, differentiation alone without aggressive marketing of the
products will not attract sufficient customers and it is recommended therefore, that the
company continue to allocate more funds to the advertisement of its M-PESA product
especially now that there is a new entrant in the market. The findings of the study
indicated that firms at times are quick to come up with strategies to deal with changes
in the business environment without considering the effects that those responses may
have on the business. Thus strategies should be considered wisely, and an analysis of
the effectiveness of those responses should be carried out before the strategies are
adopted. This will ensure that the strategies suit all the organization thus ensuring a
strategic fit for the organization. | en_US |
