Analysis of Competitive Strategies Adapted by Safaricom Ethiopia to Attain Market Leadership in Ethiopia

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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.



Competitive Strategies, Market Leadership, Cost Leadership, Differentiation, Focus, Corporate Growth, Policy and Regulation.