Strategic Alliances and Collaboration as a Source of Competitive Advantage in Firms Growth and Performance. A Case Study of Safaricom and Commercial Bank of Africa

Abstract

The objective of the study was to establish the strategic alliances and collaborations as a source of competitive advantage in firm‟s growth and performance. A case study of Safaricom – Commercial Bank of Africa collaboration. Executives were interviewed on the collaborative arrangement of Safaricom/ M-shwari. The study indicated positive development in M-Shwari transactions as indicated by the schedule A appendix IV attached. M-Shwari has greatly increased the revenue base for both Safaricom and CBA since both parties share the financial gains. The study noted the following M-Shwari has registered tremendous success and key success factors attributed to customer loyalty, favorable business terms and good corporate governance; the study cited many challenges namely inability to synchronize efforts and objectives of both firms towards organizational goals. The other challenge was that of high default rate in the alliance based transactions; challenge of failure to address complaints promptly when service failure occurs competition was also registered on a challenge. The study made the following recommendations to increase the loan duration period from the current period of 30 days; more refinement of policies and procedures governing the M-Shwari transactions, with a view to improve its perception in the market place. The study recommended reduction in interest rates to enable customers to increase their borrowing capacity. The study also recommended diversification of services a part from the M-Shwari product. The study made some suggestions for further improvements like more intensified customer research practices to understand the customer better and undertake a SWOT analysis in order to remain competitive