Safaricom Kenya Ltd: 2000 to 2010

The mobile telephony industry in Kenya has been dominated by Safaricom Kenya Ltd, a company that has come to be known as one of the most innovative companies in Africa. This paper describes the company´s background, strengths, weaknesses, and mainly its strategy. The Kenyan mobile telephony industry is analyzed based on Michael Porter´s Five-Force Competition model. The industry starts off with just two players in 2000 but by 2010 there are four players intensifying the competition and threatening to weaken Safaricom´s position as market leader. The governing forces in the external environment are found to be the rivalry among competitors, the bargaining power of suppliers and the bargaining power of buyers. The conclusion is that Safaricom needs to re-invent itself using its strengths as leverage, for the sake of its long-term survival in the fast maturing industry.