BSCLMR196920

What competitive strategy is Mpesa/Safaricom pursuing based on what we discussed in class?

Discuss

Mpesa/safaricom is pursuing a differentiation strategy. Information systems support this strategy by

providing a platform for Mpesa/safaricom to offer unique and innovative products and services to its
customers.
Mpesa/safaricom are pursuing a competitive strategy of providing mobile money services to a wide
range of customers in Kenya. Information systems support this strategy by providing a platform for
customers to send and receive money, pay bills, and transfer funds. This allows Mpesa/safaricom to tap
into a growing market for mobile money services in Kenya and other markets in Africa.

The Mpesa/safaricom is pursuing a market development strategy. This strategy is focused on increasing
the number of users of the Mpesa/safaricom service in the Kenyan market. The company is working to
increase awareness of the service and to make it more accessible to potential users. The company is
also working to develop new features and services that will appeal to new users.

The competitive strategy that Mpesa/safaricom is pursuing is price differentiation. This means that the
company is aiming to set itself apart from its competitors by offering its products and services at a
lower price. This can help to attract more customers and increase market share.

Mpesa/safaricom is pursuing a competitive strategy of customer segmentation. Information systems

support this strategy by allowing the company to segment its customer base and offer tailored products
and services to each segment.

How do information systems support that strategy? • What are the business benefits of analyzing
customer purchase data and constructing behavioral profiles based on Mpesa records? Discuss
in details
How do information systems support that strategy?
Providing mobile money services to its customers. Information systems support this strategy by
providing a platform for customers to send and receive money, as well as a way for customers to track
their transactions.
Customer segmentation: Information systems support that strategy by providing data on customer
behavior and preferences. This information is used to segment customers into groups so that
Mpesa/safaricom can tailor their marketing and product offerings to each group.

Price differentiation strategy: Information systems support that strategy by providing data on prices
charged by different suppliers, allowing the company to choose the most competitive prices.

Market development strategy: Information systems support this strategy by providing a platform for
customers to transact and communicate with each other.

Providing mobile money services to a wide range of customers. Information systems support this
strategy by providing a platform for customers to send and receive money, as well as a way for
Mpesa/safaricom to track transactions and manage customer accounts.

What are the business benefits of analyzing customer purchase data and constructing behavioral
profiles based on Mpesa records? Discuss in details

Some of the benefits that businesses can enjoy by analyzing customer purchase data and constructing
behavioral profiles based on Mpesa records include:
(a).A better understanding of customer purchasing habits and preferences.
 Identifying high-value customers and providing them with targeted offers and promotions.
 Determining which products or services are most popular with customers.
 Improving customer loyalty and retention rates.
 Increasing sales and revenue.
Mpesa data analytics can help businesses of all sizes to improve their understanding of their customers
and make better-informed decisions about their marketing and sales strategies.

(b). The ability to tailor marketing and sales strategies to better meet customer needs.
The abilities include:
 The ability to identify customer trends and preferences.
 The ability to improve customer retention and loyalty.
 The ability to generate new leads and identify new sales opportunities.
 The ability to assess customer risk and creditworthiness.
 The ability to improve customer service and support.
(c). The identification of potential new customers.
Which include;
 The ability to assess customer lifetime value.
 Improved targeting of marketing campaigns.
 Increased understanding of customer behavior and preferences.
 Improved customer retention.
There are a number of other potential benefits that could be realized by businesses that analyze Mpesa
data, depending on the specific goals and objectives of the organization.

(d). The ability to target existing customers with new products and services.
 The ability to identify and track high-value customers.
 The ability to monitor customer churn and react accordingly.
 The ability to segment customers for marketing purposes.
 The ability to better understand customer behavior.
(e). The detection and prevention of fraud.
This is the ability to:
 The ability to better target marketing initiatives.
 The ability to improve customer service.
 The ability to develop new products and services.

Do they do data analysis as Credit card Companies do? • Are these practices by credit card
companies ethical? Are they an invasion of privacy? Why or why not?
Generally, companies do not analyze customer data in the same way as credit card companies. Credit
card companies use data analysis to help them identify potential fraudulent activity and to assess
customer risk. These practices are generally considered to be ethical, as they help to protect both the
credit card companies and their customers from fraud.
However, some people may argue that these practices invade customers' privacy, as the companies are
collecting and analyzing data about their spending habits.