Running Head: SAFARICOM SWOT ANALYSIS 1 SWOT analysis Name Institution Date
SAFARICOM SWOT ANALYSIS 2 Safaricom's Background Safaricom Company was launched in 1993 as a Kenya Posts and Telecommunications corporation. It was upgraded to GSM in 1996.Safaricom was awarded its license in 1999. In 1997, it was incorporated as a private company in. Safaricom was then made a Public Limited company on 16 th May 2002 with Vodacom getting 35% shares, The Treasury 35%, Vodafone 5% and retail investors getting 25% shares of the company. SWOT analysis SWOT analysis is a useful technique that makes one understand the Strengths and Weaknesses, while looking at opportunities and the threats one can encounter. When taking a SWOT analysis, one needs to look for priorities that will make the business to grow from all directions. Using SWOT analysis, the following were discovered about Safaricom company. Strengths Safaricom has transformed the lives of its customers through the network platform. It has managed to provide quality and strong network availability which has enabled it to beat its competitors, which are Airtel and Telcom Kenya. It is important to note that Safaricom has invested in the network by expanding the 3G and 4G coverage (Kasyoka, 2011.) Energy efficiency is a strength that Safaricom has over other networks. Safaricom's network uses different sources of energy, including generators, national grid, deep cycle battery and renewable energy (solar) solutions (Oduori, 2010.) The network grows yearly making it efficient and intelligent.
SAFARICOM SWOT ANALYSIS 3 Weaknesses Quality, efficiency, productivity, and growth have become a big challenge for the growth of Safaricom Company. Safaricom needs to improve in quality. This is because customers are experiencing M-pesa challenges in sending and receiving money on their phones due to inaccessibility and inefficiency to the service provided when using M-Pesa service. Opportunities Safaricom has a wide coverage of network which makes it competitive over other networks coverage. Safaricom also offers free promotions on social media like Facebook and Whatsapp. It also provides reliable internet connection to its customers. Another opportunity that safaricom has is that the M-psa services are reliable. Threats A rivalry of other network providers is a threat to Safaricom. Airtel Kenya and Telcom Kenya has not been happy with Safaricom's dominancy for some years (Munyasi, 2010.) Competition in the mobile transfer is also a threat to Safaricom M-pesa services. These are T- cash money by Telcom and Airtel money. Conclusion While Safaricom has a lot of weaknesses and threats, it also has some strengths. These strengths have made it stay on top of the market. It has also used the opportunities available to beat the competition that it is likely to face. However, it has to increase the quality and productivity in the services that are provided. Safaricom has no other choice, but to ensure that M-pesa services are accessible to its customers.
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