FACULTY OF BUSINESS MANAGEMENT SCIENCES AND ECONOMICS

DEPARTMENT OF BUSENESS ENTERPRISE AND MANAGEMENT

NAME JUDITH SAVANHU

REG NUMBER R203988K

PROGRAM HBED

COURSE CODE BED303

DEPARTMENT BUSINESS ENTERPRISE MANAGEMENT

QUESTION

Develop a business strategy for a firm in the industry of your choice using
the business diamond strategy .You need to be practical and show the
economic logic of your strategy (40)
INTRODUCTION

Donald Hambrick and James Fredrickson created the Business Strategy Diamond framework
in 2001 to help firms analyze and develop their business strategy. The framewor consists of
five interconnected components which are arenas, vehicles, differentiators, staging, and
economic logic. It highlights the dynamic relationships between these aspects. The idea is to
show how interdependent they are by showing how changes to one aspect can have an impact
on others. To create a coherent and effective overall strategy, these components must be
carefully balanced and combined in order to produce a successful company plan. The
Business Diamond Strategy is applied in this essay to develop a comprehensive company
strategy for Econet Zimbabwe, with an emphasis on practical economics.

The Strategy Diamond: Adapted from Hambrick, D.C and Fredrickson, J.W (2001)

ARENAS
This element requires identifying target markets, sectors, and client segments with the highest
potential for success in order to make strategic decisions on where to compete. Businesses
must take into account variables including customer wants, competitive intensity, growth
rates, and market size. Companies can concentrate resources where they have a competitive
edge by choosing the appropriate arenas. With a vast customer base, ECONET Wireless
Zimbabwe offers mobile voice and data services in the Zimbabwean telecom and mobile
services industry (Nhamo, S. 2023). In order to increase its reach, Econet can investigate
unexplored areas, such as rural places like Binga, and use cutting-edge technologies to close
the digital gap. Furthermore, investigating prospects in nearby areas can aid in accessing
developing markets and bolstering Econet's market share.

VEHICLES
Vehicles serve as a symbol of how a business operates in the markets it has selected. This
aspect includes choices made regarding certain goods, services, and business models.
Features, quality, cost, methods of distribution, and customer experience are all taken into
account. Vehicle designs ought to add value for consumers and set the business apart from
rivals (Fredrickson, J. W. 2001) . Econet needs to improve its mobile network and expand its
5G stations throughout all of Zimbabwe's provinces in order to attract more users. To
maintain a competitive advantage over NetOne, Econet can fortify its banking services,
investigate blockchain technology for safe transactions, and invest in increasing high-speed
internet access. In a market that is always changing, Econet's products are guaranteed to
remain appealing and relevant thanks to this strategic approach.

DIFFERENTIATORS
Differentiators are the special features or qualities that distinguish one business from another.
Finding and utilizing the assets that provide the business with a competitive edge is the focus
of this aspect. Product innovation, technological leadership, excellent customer service, brand
recognition, operational excellence, and other elements that add value for customers can
serve as differentiators(Volberda et al. 2024). To remain ahead of the competition, businesses
must constantly innovate and enhance their differentiators. The three main differentiators of
Econet are its worldwide distribution network, technological innovation, and brand name.
Econet needs to make sure that its products surpass those of rivals in order to keep its
competitive advantage. Its position would be strengthened by making investments in cutting-
edge solutions including enhanced network infrastructure and cutting-edge financial services.
Furthermore, having high-speed internet access is necessary to be competitive in the quickly.
Also Econet must make sure that its services must reach globally.

STAGING
The time and order of steps within a company's strategy are referred to as staging in strategic
implementation. This component includes choices for the timing and sequencing of strategic
objectives, including product development milestones, market entry, and plans for global
expansion, which may include the order of mergers and acquisitions. A carefully considered
staging plan guarantees efficient use of resources, control over risks, and a coordinated build-
up of the organization's competencies.

Additionally, staging includes forming partnerships and strategic alliances. Econet might take
a phased approach to its cooperation projects instead of jumping into agreements blindly.
This is starting with smaller-scale partnerships and working your way up to larger-scale
strategic alliances. By using this approach, Econet can first build relationships, determine
compatibility, and coordinate goals before committing to long-term alliances.

ECONOMIC LOGIC
Economic reasoning concentrates on the monetary components of a business's approach. This
aspect entails figuring out how the business will turn a profit and add value for its investors.
Cost structures, pricing strategies, income streams, and financial performance targets are just
a few of the variables that businesses must take into account. The company's plan should be
long-term financially feasible and sustainable based on sound economic reasoning
(Hambrick, et al (2005). Econet guarantees a strong economic rationale by showcasing its
strategic brilliance through the Business Diamond Strategy. In line with market development
principles, the strategic expansion into unexplored markets opens up new revenue growth
opportunities and allows for the acquisition of emerging consumer categories(Nyangoni,
2023). . To maintain its market share and position itself as a force in the economy Econet
must improve its current vehicle lineup and introduce novel solutions. This will reinforce
Econet's role as a catalyst for technological advancement in Zimbabwe.
Econet can improve its financial performance and maintain its position as a major player in
the telecom sector by streamlining its cost structure and enacting aggressive pricing policies.

CONCLUSION

In conclusion, the Strategy Diamond Model provides a valuable framework for Econet
Wireless to develop a comprehensive and effective business strategy that maintains its
position as a market leader in the telecommunications industry. By addressing key questions
related to arenas, differentiators, vehicles, staging, and economic logic, Econet Wireless can
create a unique and compelling value proposition that meets changing consumer preferences,
expands market presence, and achieves sustainable growth. To ensure success, Econet
Wireless should align these five elements to create a coherent and mutually reinforcing
strategy that drives business success. By expanding into new markets, focusing on
innovation, sustainability, and technology as differentiators, exploring new distribution
channels, and carefully planning its strategic moves, Econet Wireless can continue to grow its
business and remain a leader in the telecommunications industry. This approach will also help
diversify revenue streams, improve operational efficiency, and appeal to a broader consumer
base, ultimately ensuring strong economic logic for the company.

REFERENCES
1.Hambrick, D. C., & Fredrickson, J. W. (2001). Are you sure you have a
strategy? Academy of Management Executive, 19(4), 51–62
2.Volberda HW, Hollen RMA, Pereira JR, Sidhu JS and Heij K (2024) Strategic
Management. SAGE Publications Limited

3.Nhamo, S. (2023). The Role of Strategy Diamond in the Success of Econet

Wireless Zimbabwe. African Journal of Business and Economic Research,
11(1), 78-91.

4.Econet Wireless Zimbabwe. (2023). About Us. [online] Available at:

https://www.econet.co.zw/about-us/ [Accessed 12 March 2023].

5.Nyangoni, T. (2023). Econet Wireless Zimbabwe: A Diamond in the Rough.

Strategic Management Insight, 5(3), 36-42.

6.Kaseke, S. (2023). Strategic Analysis of Econet Zimbabwe: A Business

Strategy Diamond Approach. International Journal of Management and Applied
Research, 9(1), 23-41.

7.Econet Wireless Zimbabwe. (2023). Econet Zimbabwe: Annual Report 2022.

[online] Available at: https://www.econet.co.zw/investor-relations/financial-
reports/ [Accessed 12 March 2023].