Analysis of Competitive Strategies Adapted by Safaricom Ethiopia to Attain Market Leadership in Ethiopia
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Date
2023-05-03
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A.A.U
Abstract
Rapid evolution in the internet and telecommunications technology has resulted in an increase in
the numbers and modes of telecom access as well as its use. Safaricom Ethiopia has emerged as a
new player in the telecom market in Ethiopia, with a lower current market share than all telecom
businesses in Ethiopia. This study sought to determine the competitive strategies adopted by
Safaricom Ethiopia to get market leadership in the market of Ethiopia, and the challenges
experienced in applying the strategies. this research conceptualized and analyzed four dimensions
of a competitive strategy: cost leadership, differentiation, corporate growth, and focus and test
their relationships in the respective market leadership. The study used both qualitative and
quantitative approaches and the target population for this study was managers at Safaricom
Ethiopia. This population was chosen because the managers are the ones who perform strategy
formulation and implementation. The target population was managers from all seven departments
at Safaricom Ethiopia. The relationships proposed in the framework were tested using Pearson
correlation, and the causal relations were analyzed using regression analysis. The data was
collected by distributing questionnaires to the departments that are key to the design,
implementation, marketing, technology, resourcing, and customer support of telecom services at
Safaricom Ethiopia. The data were analyzed using descriptive and inferential statistics and
presented using frequency, mean, correlation, and regression, and the findings were presented in
the table. The research findings have shown that competitive strategies have a positive significant
effect on market leadership This study also revealed that government policy and regulation
mediate the competitive strategies and market leadership relationship.
The study concluded that Safaricom has been utilizing cost leadership, focus, and differentiation
strategies to attain market leadership. The study recommends that this paper is only on the case
of Safaricom Ethiopia, and future research should consider other business organizations.
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Keywords
Competitive Strategies, Market Leadership, Cost Leadership, Differentiation, Focus, Corporate Growth, Policy and Regulation.