Rank: Elder Joined: 6/19/2008 Posts: 4,268
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alma wrote:@muganda
excellent post. You have hit the nail on the head as to why the remaining safcom guys aren't going to move quickly.
It is actually the reason why safcom shareholders should be shaking in their knees as we speak. Number loyalty and this mobile payment thing.
Sometime this year, number portability will be a reality. You will be able to move with your phone number to the better provider. I am sure that is what YU is counting on. Very true... ask yourself, how much will safaricom make by having these number portability.... remember, safcom-safcom will be lower than all other networks... and by the way, this is a cold war... the Zain 'forever' tariffs will not be sustainable for long. The moment they raise it, people will "un"-vuka - there is something with familiarity... Its just human!
alma wrote:Mobile payment portability. It is also something that is coming soon. So you will be able to move money from mpesa to zap to orange one. How many ZAP outlets do you know? Chances are, Safaricom is well stationed to gain from this because of their accessibility... someone will Mpesa money to your Zain line and you will withdraw from an Mpesa agent... trust me..... You wont go around town looking for one corner ZAP shop when you can withdraw from any kiosk behind your house
alma wrote:Data..see my earlier post on data. If zain goes 3G, see the move with safcom modems being converted to zain and more likely orange. By the way, orange is the one to watch on data. Trust Safaricom to come up to defend its market position with more tempting offers..... we cant assume that safaricom will just sit and watch as its share goes down doing nothing
alma wrote:The days of forced loyalty to a product are coming to an end. You can no longer force customers to stick with you because of Mpesa, or your phone number. Trust the attachment that people have on their phone numbers.... still, you will be more enticed to stick to SAfcom because of lower inter-rates and especially bearing in mind the number of safcom subscribers on your phonebook.... When in Zain and calling majority of Safcom guys, Safcom still laughs all the way to the bank - hence, the impact may be as much as people may expect.
alma wrote:So when the first statement that came from safcom was " I will not change my rates because my shareholders will not make money on the poor people in Kenya" came out, I considered it the most stupid press statement since Kalonzo was Yes, NO, Yes, Yes, No No Ye. I wasnt happy with that too.... same as the way the "peculiar calling habits" made me feel... but, hey, this is not a love affair, what i need is convenience.... In any case, if i am a safcom shareholder (which i am not) i would want my CEO to protect my wealth at any cost.... nothing personal, just business.... he is just doing his job!
alma wrote:It meant that to me the consumer, I am useless unless I own shares in this wonderful company. Bottomline of business, why do you need consumers/customers? All these guys sweet talk us for our money.... well, at times safcom demands for it i have to admit....
alma wrote:That was the end of safcom rise.
Look at what happened today. The moment they announced their rates, they then gave conditions. Makes business sense.... that's why they have strategic thinkers... why respond to one subscriber when you do not have all the cards on the table? You respond tentatively, waiting for others to respond as you weigh the market mood and response... kinda like damage control to protect your turf as you work out something concrete with full information...alma wrote:from now onwards, anytime safcom comes up with a product, everyone will be looking for the conditions - I would rather work with conditions than suspicion... the reason i am not moving to zain is because the products have not made business sense yet and hence i dont foresee this status lasting for long..... alma wrote:Trust in this company is gone.
It is not the price. It never will be the price. Price wars never help any company and the indians know this. It is perception. Tell me, and i am not being a racist, how much do we remain royal to newcomers? There is this perception of 'foreigners'.... and especially if it is indian.... In my opinion, that's how EABL has managed to maintain their high prices and their lion share too... alma wrote:They have managed in one week to make everyone (naaah 0 not everyone... at least not me and @mozerat)alma wrote:including those still with safcom think that safcom is a greedy company led by people who don't care about the poor in Kenya.
Remember what Bharti said when they came to the market. They want to be known as the "village provider". They will give the villager like me products that I can understand.
Now go to shags and explain to my cucu that it is good to use safcom because they employ Kenyans and their P/E ratio is good, their 4G network is the best in the world etc. Now by the way pay more to call if you only have 20 bob to call. hahahahahahaha... i also wouldnt know how to explain that bit.... my business sense and marginal costs wouldnt work on this... ehehehehe
alma wrote:Then you will understand why you should be dumping safcom shares until the next CEO comes in. As far as I am concerned Michael Joseph's attitude may be a liability to this company now. On the shares, yes, i would run for now, but for the line, i will hold on until am convinced we have another better option.....
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