Pestle Analysis: Safaricom

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TABLE OF CONTENTS
Introduction………………………………………………………………. 2 Company Profile…………………………………………………………... 2 Political Factors…………………………………………………………… 3 Economic Factors…………………………………………………………. 4 Social Factors……………………………………………………………… 5 Technological Factors……………………………………………………... 6 Environmental Factors…………………………………………………….. 7 Legal Factors………………………………………………………………. 7 Conclusion…………………………………………………………………. 8 References………………………………………………………………….. 8

INTRODUCTION

PESTEL analysis stands for Political, Economic, Social, Technological, Environmental and Legal analysis. PESTEL describes a framework of of macro-environmental factors used in the environmental scanning component of Strategic Management.PESTEL is a part of external analysis of doing market research and gives an overview of the different macroenvironmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations

COM PANY ANALYSIS: SAFARICOM LIMITED

ABOUT SAFARICOM LIMITED
Safaricom Limited. Is a mobile network operator with headquarters in Nairobi, Kenya.With an estimated 10 Million customers and 1$ Billion in revenues, it is, without a doubt, Kenya’s leading telecommunications company. Further testament to this fact is the recent Initial Public offering of its shares which was the largest ever in East and Central Africa. Safaricom’s main revenue generating activity is provision of mobile service although it has diversified its product range to include the following; M-Pesa-this is a mobile money transfer service that has revolutionized the way people conduct business in Kenya e.g. has made payments easier.M-Pesa is the first such service of its kind in the world Roaming-this is a service that allows travellers to continue using their Safaricom line whenever they travel outside the country, irrespective of whether the Safaricom network is available in the foreign country.To achieve this,Safaricom negotiates agreements with mobile operators in those countries to facilitate the service.However,this service is available at a fee. Safaricom Live-this is a service that allows Safaricom customers access the internet from anywhere in Kenya where there is Safaricom coverage. This is achieved by the use of 3G modems which ensure high-speed internet. Multiple Top-up-this is a service which allows simultaneous top-up of mobile air-time to multiple mobile subscribers.This service targets employers who may want to provide mobile air-time to their employees e.g. at the end of the month In addition to the above, Safaricom also provides data services i.e. data storage, data streaming e.t.c

Analysis of Macro‐Environment
The main PESTEL factors of external influence on Safaricom’s value are the following:

Political factors
These are factors that are brought about by the prevailing political conditions in the country of the operation. These factors are very important to the Safaricom is generally subject to regulations governing the operation of its business. They take the form of global, national, regional, local and community trends, changes. events e.t.c some of these factors include;

a)Legislative Regulations
This refers to laws that are made that diretly or indirectly affect the industry or even the company. In Kenya, there have been various laws enacted that attempt to regulate the telecommunications sector in the country. One of these laws is the Kenya Communications Ammendment Bill 2008.This amended law aims at regulating the telecommunications industry in many ways e.g. there is the requirement that all mobile service providers register their customers. This is a threat to Safaricom since the government has privileged information and should the information fall into the wrong hands, it could be used by competitors to sabotage the company There is also...
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