Use Operation Strategy Within the Kenyan Context- Case Study Safaricom and Airtel Kenya

Using any two firms in the same industry discuss how they compete and use operation strategy within the Kenyan context

Operations management is the core business function in an organization which delivers 44% of a firm’s competitiveness. Firms also use marketing and distribution, name recognition, good management and financial resources to gain competitive advantage. Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy, through the reconciliation of market requirements with operations resources. Operations strategy is the tool that helps to define the methods of producing goods or a service offered to the customer. Companies must thus put into place operational strategies with the long term intention of customers satisfaction and gaining competitive advantage. Strategy is a set of plans and policies by which a company aims to gain advantages over its competitors. A strategy includes plans for products and the marketing of these products to a particular set of customers.

Safaricom is one of the leading integrated communications companies in Kenya with over 17 million subscribers. Safaricom provides a comprehensive range of services including mobile voice, data and fund transfer services. It is the largest telecommunication firm in Kenya with revenue of USD 1.25 billion (2012). It was awarded a GSM license in 1999.

Airtel Kenya is the second largest telecommunication firm and Safaricom main rival. Airtel Kenya started operations in 2000 with the brand name Kencell and has rebranded several times. It provides voice, data and fund transfer services.

These firms use the below operation priorities:

1. Cost:

Airtel has adopted outsourcing of some of its functions as a way of reducing cost and also to ensure efficiency. The company has out sourced to third parties it network management, customer care services, mobile transfer services among others. This...