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Will safaricom survive
Rank: Veteran Joined: 5/23/2010 Posts: 868 Location: La Islas Galápagos
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guru267 wrote:we kenyans need to stop being so narrow minded.... Do you think safcom being owned by GOK and vodafone has no succession plan which is a basic for good corporate governance?? They've probably been grooming someone for the last 5 years or more.... Just the way they found MJ they can easily find someone better from the 6billion of us human beings....
They might poach a CEO from Airtel, Yu, Oranje . . . perhaps even from KCB or KQ A bad day fishing is better than a good day at work
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Rank: Veteran Joined: 5/23/2010 Posts: 868 Location: La Islas Galápagos
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sparkly wrote:MaichBlack wrote:
@All - Imagine this, wild as it may sound. Airtel poaches MJ [Probably makes him the highest paid CEO in the region - by far!]. You'll be lucky to get a buyer for your SCOM shares at 3/= in the short term!
@MM waaai you are giving me nightmares unlikely, MJ is a SAF shareholder. Just posted that SAF might poach a CEO from Airtel, Yu, s'Oranje . . . perhaps even from KCB or KQ A bad day fishing is better than a good day at work
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Rank: Veteran Joined: 12/4/2009 Posts: 1,982 Location: matano manne
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I bet for Airtel to beat Safcom, then they'll have to beat them at M-Pesa to surely get the numbers first. Later they can enter easily into data. Else they should have a strategy to concentrate on voice, voice, voice. Betting on the idiot CEO after MJ's departure might not be an ideal strategy to beat them. I also bet Airtel apart from poaching MJ should devise innovation strategies and maybe poach heavily from Safcom's technical and management teams. Now looking at all these possible scenarios, Vodacom and GoK need to devise counter strategies these could look like: 1. Consolidate M-pesa - maybe the M-Kesho way 2. Poach MJ's replacement from BBK, KCB, KQ. 3. Consolidate dominance in data - the Opra Mini style. 4. Delay changes to number portability - the same way as with Communications Act 2010. 5. Employ more anthropologists  In MHO, this is no mean tusk for Airtel as for Safcom survival, it survives in the short term and in the long term its all upto its future strategies.
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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there is no way safaricom will lose not in 5 yrs to the minimum. LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Member Joined: 7/22/2008 Posts: 851 Location: nairobi
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i will not be suprised if super ongea taariff becomes consistently cheaper all day long.
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Rank: Chief Joined: 1/3/2007 Posts: 18,215 Location: Nairobi
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Competition is GOOD for consumers!!! The days when I used to talk like speedy gonzales have gone. I use YU & I talk 'normally' coz 6/- per minute! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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So is this how it's going to end? Other companies wafunge virago na waondoke? Seems so. Safaricom has weathered the storm. They have matched the calling and SMS rates of their rivals (and being market leader has enabled them to charge higher by a shilling to other networks) They improved Mpesa. Only thing they need to work on is their network. Meza had threatened to go lower if Safaricom followed suit. He's awfully quiet. I can't imagine calls being 1 shilling a minute and SMS's free. Unless on launching their 3G, they give rock bottom rates, let's say 50 cents per MB, HAWATOBOI! Safaricom will announce reduced profits, but from that point onwards, the march will be unstoppable. Having said that, bado siezi igusa NSE. But Safaricom has to be praised. That was the best defensive strategy I've seen since Mourinho and Inter beat Barcelona in the Champions League last year GOD BLESS YOUR LIFE
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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MPESA still remains the largest barrier to the competitors. Once they find a way to counter this arsenal, then they can kick about their dominance. Ironically MPESA charges more transaction fees, but it's the favourite?! Perhaps another "peculiar Kenyan habit". On the network point, I think Airtel should test another price haircut (e.g. 1/- for voice calls) for a month. With safcom's current network status, I doubt they'd match such an offer. However, in the process Meza would be putting his salary on the line. Tough choice I guess. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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hisah, Kenyans are not the most thrifty people in the world. However, MPESA still has the most agents. Hata kwa butchery! This omnipresence is a huge advantage for them. I like your idea of Airtel making calls 1 shilling and crashing Safaricom's network. But would they be able to take the hit? GOD BLESS YOUR LIFE
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Rank: New-farer Joined: 1/10/2010 Posts: 73 Location: kenya
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I think Airtel should kick off their campaign in the urban areas. Because if they go rural they will fail miserably.
In shagz, I know of several kids called Michael Joseph(shy of being named Safaricom).
When Grannies are talking about Phones,They talk of 'Thimu Ya Thafaricom' and not Nokia or Motorolla.
I Shagz they care less about tarrifs.These are the same people who call every powder soap Omo.
Unless they use the 12B to bribe,I dont see how they are going to beat this Brand Loyalty.
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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chaliwong wrote:In shagz, I know of several kids called Michael Joseph(shy of being named Safaricom).
When Grannies are talking about Phones,They talk of 'Thimu Ya Thafaricom' and not Nokia or Motorolla.
I Shagz they care less about tarrifs.These are the same people who call every powder soap Omo.
What an eye opener! GOD BLESS YOUR LIFE
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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I doubted how saf would survive when airtel went all kamikaze, by reducing prices to 3 bob for voice calls. But they have survived, mpesa is their strongest defence, zap has been unable to penetrate this area. I think safcom will survive, besides, kenyans brand loyalty is mysterious! The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 12/8/2009 Posts: 274 Location: Ltktk
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youcan'tstopusnow wrote:chaliwong wrote:In shagz, I know of several kids called Michael Joseph(shy of being named Safaricom).
When Grannies are talking about Phones,They talk of 'Thimu Ya Thafaricom' and not Nokia or Motorolla.
I Shagz they care less about tarrifs.These are the same people who call every powder soap Omo.
What an eye opener! in shagz every margarine is called 'bleuband'. every maizeflour is 'jogoo' and every wheat flour is 'unga ya paa' lol ...things fall apart...the centre cannot hold..mere anarchy is loosed upon the world...w b yeats
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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TUPAC wrote:youcan'tstopusnow wrote:chaliwong wrote:In shagz, I know of several kids called Michael Joseph(shy of being named Safaricom).
When Grannies are talking about Phones,They talk of 'Thimu Ya Thafaricom' and not Nokia or Motorolla.
I Shagz they care less about tarrifs.These are the same people who call every powder soap Omo.
What an eye opener! in shagz every margarine is called 'bleuband'. every maizeflour is 'jogoo' and every wheat flour is 'unga ya paa' lol ... and every shoe polish kiwi and every bread supaloaf and every... GOD BLESS YOUR LIFE
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Rank: Veteran Joined: 6/8/2010 Posts: 1,732
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And so even when using airtel they say thafarikom Life is an endless adventure
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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youcan'tstopusnow wrote:hisah, Kenyans are not the most thrifty people in the world. However, MPESA still has the most agents. Hata kwa butchery! This omnipresence is a huge advantage for them. I like your idea of Airtel making calls 1 shilling and crashing Safaricom's network. But would they be able to take the hit? Looks like Airtel has decided to go full kamikaze... This will be very interesting to say the least...
http://www.capitalfm.co....-rates-to-Sh1-5251.html
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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What will safcom do about this??? There telco wars are interesting. Dont envy bob collymore's job, right about now. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 8/5/2009 Posts: 597
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Has issues with Bob call-me-more following him on twitter the posts has no patriotism to safcom, always the silicon valley, the new OS sounds more an IT guru. He is not able to translate his capabilities to managing safcom. The problem with the world is that the intelligent people are full of doubts while the stupid ones are full of confidence
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Rank: Member Joined: 11/16/2009 Posts: 4
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I need to get me a twin sim phone ASAP.hehe When buying shares, ask yourself, would you buy the whole company? --Rene Rivkin
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Rank: Chief Joined: 1/3/2007 Posts: 18,215 Location: Nairobi
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I expect a lot more vukaing to Airtel... Asante Sana! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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