Strategic responses by Safaricom to the dynamic business environment
Quite often organizations experience changes in their business environment. This study used a case study approach to investigate the strategic responses by Safaricom to the dynamic business environment. The respondents in this study were the functional and divisional managers at Safaricom Limited. Safaricom Limited has three revenue centres and six function divisions. The three revenue centres are Financial Services, Enterprise and Consumer business. The function divisions include Risk Management, Legal, Regulatory and External Affairs, Marketing, Customer Service, and Information Technology. This study interviewed 3 employees from each division. Directors or managers of the three revenue centres were also interviewed owing to their positions and information they had in regard to this study. In total 21 face-to-face interviews were conducted. Content analysis was done for qualitative data. Information from interviews was grouped based on running themes and the results presented in prose format. This study found that market segmentation, stepped up promotions, customer awareness and education to enhance uptake of Safaricom products, costs saving strategies, a leaner management structure as well as employing more staff based on contract basis rather than permanent basis have been adopted by Safaricom as strategic responses to changes in business environment. The adoption of strategic responses has encountered challenges especially in restructuring where some of the employees felt that they were targeted. These challenges were found to affect Safaricom either positively or negatively depending on how their effects are handled. This study recommends that CCK should create a flexible regulatory environment. The government should ensure that the necessary laws and policy are put in place to safeguard the interests of all the stakeholders in the industry. Safaricom should be careful on how it handles the effects of the changes that it adopted, and come up with strategize to cope with the changes. 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 employees in the organization. It will also ensure that the firm is ready to encounter any challenges that may be encountered during the implementation of those strategic responses.