MGT 4070 Argosy University Safaricom Limited Company Case Study Analysis

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Case Study #14 – Safaricom

Read the Safari.com case study located in the section titled Case Studies in your textbook concerning the following situation:

The Safaricom case provides an excellent opportunity to apply strategic management concepts to a constantly growing and extremely competitive organization. Safaricom is the largest mobile service provider in Kenya. It offers not only means of mobile communication, but also is involved within the community. In addition, Safaricom sponsors athletic events such as Safaricom Sevens and a music festival, Niko na Safaricom Live.

The purpose of this case study is to examine the factors that are crucial to Safaricom’s continued success and to propose strategic actions to sustain its competitive advantage. While Safaricom’s community involvement enhances its brand image, the mobile service sector of Safaricom is the largest and main focus. Safaricom was formed in 1997 and has grown to be the largest mobile service provider in Kenya by implementing different strategies, including acquisitions.

The analysis should start with a scan of the general, industry, and competitive environments. How does the external environment in Kenya differ from anywhere else? The case also describes Safaricom’s competitive advantage, and the effectiveness of its strategies against industry rivals should be examined. Safaricom offers different services such as prepaid mobile, voice and data services, and its voice packages are bundled with other services such as rewards programs, music, and games. Finally, the pressing strategic concerns, the effectiveness of Safaricom’s leadership should also be considered to devise convincing recommendations.
This case is ideal for demonstrating the importance of the external environment, competitive rivalry, and strategic leadership. The following points are to guide a review and discussion of these important concepts.

Your report and overview should address the following key strategic issues:

• Describe the general environment that Safaricom faces. What are the segments in the general environment that relate to Safaricom’s situation? What are the opportunities and threats derived from the factors from the general environment? What are the possible future implications of some of the external factors?

• Analyze the competitor environment and identify the competitors. Has Safaricom done enough to outperform its competitors?

• Evaluate Safaricom’s CEO, Robert Collymore’s strategic leadership. Has he been able to fulfill his responsibilities and continue to grow Safaricom as a company?

• Analyzed Safaricom’s next move in terms of growth and expansion. Based on your analysis, what additional recommendations would you make to help Safaricom achieve its goals?

Submission Details:

• Based on your research, write succinct discussions of each of these items.
• Present your work as a 3–4-page report in a Microsoft Word document formatted in APA style.
• Support your responses with examples. Cite any sources in APA format.
• Name your document MGT4070_W1_LastName_FirstInitial.doc
• Submit your document to the Submissions Area by the due date assigned.

Week 2 Assignment

Case Study #8—Keurig

Read the Keurig case study located in the section titled Case Studies in your textbook concerning the following situation:

This case describes a new product success story, set in a competitive business climate. Keurig was one of the companies to commercialize an innovative technology that allowed people to brew one cup of coffee at a time. Keurig was established in 1992. The word, “Keurig,” means excellence, and it has been the guiding principle behind its products and services. Keurig patented its single serve brewing system and first entered the office coffee service, or Away From Home (AFH), marketplace in 1998. In 2003, Keurig became one of the first to enter the At Home (AH) marketplace with a single serve brewing system designed for use in the home.

By 2010, 25 percent of all coffee makers sold in the United States were Keurig branded machines. Keurig is regarded as a market leader. However, Keurig faces two major challenges. First, some patents of Keurig’s key technologies are approaching the expiration date. Without the protection of the patents, Keurig can lose revenue from the K-Cup portion packs, thus reducing GMCR’s coffee sales. Keurig can also lose royalties from other roaster coffee sales using Keurig’s technology. The second challenge is the perceived environmental impact of the K-Cup portion packs. It will need to be addressed to prevent erosion of Keurig’s position in the marketplace.

An evaluation of Keurig’s business-level strategy, competitive rivalry, and SWOT analysis will aid in the discussion and weighing of strategic options available to Keurig. The results of the analysis can then be used to establish and support a strong set of recommendations seeking to ensure a continuation of Keurig’s strong performance and top market position.

• Assess Keurig’s business-level strategy. Has the company’s business-level strategy been successful?

• How does Keurig’s strategy stand up against competitive rivalry in the industry?

• Review the important elements of Keurig’s external and internal environments. Analyze key factors in the SWOT analysis.

• Evaluate Keurig’s s international strategy and its use of alliances to achieve company objectives.

• Weigh the challenges confronting Keurig. What are the greatest risks for Keurig? What recommendations can be made to support Keurig’s growth and profitability objectives?

Submission Details:

• Present your analysis as a 3–4-page report in a Microsoft Word document formatted in APA style.
• Support your responses with examples. Cite any sources in APA format.
• Name your document MGT4070_W2_LastName_FirstInitial.doc
• Submit your document to the Submissions Area by the due date assigned.

Week 3 Assignment

Case Study #6—IKEA

Read the IKEA case study located in the section titled Case Studies in your textbook concerning the following situation:

The IKEA case provides an excellent opportunity to apply strategic management concepts to a large privately-held company that is expanding into India. IKEA is a Netherlands-based Swedish company with a presence in 44 countries around the world, including the US, the UK, Russia, the EU region, Japan, China, and Australia. It is the largest furniture retailer in the world but did not enter India until 2013, despite the fact that it has been sourcing from India since the 1980s.

The purpose of this case study is to examine the factors that are crucial to IKEA’s continued success and to propose strategic actions to sustain its competitive advantage. The case opens with a review of the company’s humble beginning. IKEA was founded by 17-year-old Ingvar Kamprad in Sweden in 1943. By the 2000s, IKEA has become the world’s largest furniture retailer. The corporate structure was constructed to prevent any takeover and to protect the family from taxes. Thus, the structure is a complicated arrangement of not-for-profit and for-profit organizations. The IKEA stores provide customers with a unique shopping experience with low prices, solid quality, modern designs, and most importantly, the concept of do-it-yourself (DIY) products.

The extensive discussion is followed by a description of the furniture industry in India and what IKEA had to overcome in order to enter the Indian market. IKEA first met with regulatory and political roadblocks, and then had to work with suppliers in order to meet the Indian government’s requirement for sourcing. Finally, there are several challenges that IKEA faces.

This case is ideal for demonstrating the importance of the general environment, international corporate-level strategy, and type of entry. The following points are to guide a review and discussion of these important concepts.

• Review IKEA’s general environment segments and elements in India and describe in detail all the elements associated with this segment. Include three to four perspectives of the general environment.

• What are the segments in the general environment that relate to IKEA’s situation? Be specific? Provide examples and details.

• Analyze IKEA’s intended international corporate-level strategy in India. How was it strategized and what led to this country of interest?

• Describe how, if in any way, India is different from other countries? In your opinion, what would be a close second country?

• What is IKEA’s choice of international entry mode? Provide research and examples.

• What are the advantages and disadvantages compared to other international entry modes?

• Identify IKEA’s current challenges in India. Based on your analysis, what additional recommendations would you make to help IKEA achieve its goals?

• Discuss the uncertainties and risks of doing business in different regions throughout the world.

• Discuss whether IKEA would be wise to pursue a cooperative strategy. Also, identify the type of cooperative strategy that would be best, explained why would it be best, and suggested with whom IKEA should pursue this strategy? If a cooperative strategy was not a good idea for IKEA, explained why not.

• IKEA’s product demand is difficult to manage. Recently overseas competition has refocused their product lines from the low end of the market to the more median price range. As they did this, they also broadened their product lines. How should IKEA manage their products? Should IKEA have a product line to meet the needs of the entire market or should they focus on one area of the market? If they follow a market focus strategy, what should their new target market be?

Submission Details:

• Present your analysis as a 4–5-page report in a Microsoft Word document formatted in APA style.
• Support your responses with examples. Cite any sources in APA format.
• Name your document MGT4070_W3_LastName_FirstInitial.doc
• Submit your document to the Submissions Area by the due date assigned.