For the selected approved case study organization you are required to

create a situational analysis to include stakeholder and customer analysis

of the selected organization (Econet Wireless Zimbabwe Limited).

Takudzwa Joshua Nyambishi

R2211D15373254

Strategic Marketing

UPLMBAM13-47491

13 August 2023

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Introduction:

In the context of globalization, where more and more companies are present on the market,

where the achievement of commercial objectives of companies has become a

necessity and not a privilege, a new concept of commercial strategy review is emerging. This is

the marketing audit. .

Kotler, Gregor, & Rogers, (1977, p.85) describe marketing audit as: a comprehensive,

systematic, independent, and periodic examination of a company’s business unit,marketing

environment, objectives, strategies, and activities with a view of determining problem areas and

opportunities and recommending a plan of action to improve the company’s marketing

performance.

The scope of this essay is to find lasting solutions that will improve the overall performance and

results of the business.

PESTLE theory will be put into practice;environmental analysis is used to understand the key

factors that are likely to drive change in your business environment.Competition has been

identified as the major setback of businesses and Econet Wireless Zimbabwe Limited has not

been spared. Fozer et al., 2017 mention that for businesses to survive they have to shrug off

competition in the industry. However, healthy competition also yields positive gains.

I.Problem Identification

Competition is indeed one of the significant challenges that Econet Wireless Zimbabwe Limited

faces in its operations. As a telecommunications company operating in a highly competitive

industry, Econet faces intense rivalry from other players in the market. Turner (2008) states that

competition is intense in all business circles and for an organization to thrive there is need to

have a powerful brand.

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Stakeholder analysis

Stakeholders can be defined in terms of their power as those groups "on which the organization

is dependent for its continued survival" (Hillebrand, 2010). Hill and Jones (1992, P. 133) also

mention that stakeholders are "constituents who have a legitimate claim on the firm".

Stakeholders of Econet Wireless Zimbabwe Limited can include shareholders, employees,

customers, suppliers, government regulatory bodies, and local communities. Each stakeholder

group has different interests and expectations from the company. Conducting a stakeholder

analysis helps identify key stakeholders and assess their influence and importance to the

organization. By understanding their needs and concerns, the company can develop strategies to

prioritize stakeholder engagement and manage relationships effectively.

Customer Analysis

Customer Analysis:Understanding customers is crucial for any organization’s success. Econet

Wireless International must analyze its customer base to gain insights into their preferences,

behaviors, and needs. This analysis can include demographic factors (age, gender, income),

psycho graphic factors .

The incorporation of stakeholder and customer analysis will bring out the real concerns posed by

stiff competition that exists in the telecommunications business.

Ia. Market Saturation: Payne, Ballantyne and Christopher (2005) argue that in

telecommunications industry compete among themselves and there is also alternative

communication services such as Over-The-Top (OTT) applications and internet-based calling

services. The Zimbabwean telecommunications market has experienced significant growth in

recent years, resulting in increased competition. Other major players in the market, such as

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NetOne and Telecel, offer similar services, including voice, data, and mobile financial services,

which directly compete with Econet's offerings.

Ib. Price Wars: To attract and retain customers, telecommunication companies often engage in

price wars, lowering tariffs and offering discounted packages. These price wars can negatively

impact Econet's revenue and profitability as they strive to maintain market share. Turner (2008),

maintain that sometimes businesses maintain high market share be forgoing their profits.

Ic. Network Quality and Coverage: According Henderson et al (2020) , Telecommunication

companies are continuously investing in network infrastructure to improve the quality and

coverage of their services. Maintaining a reliable and robust network is crucial for customer

satisfaction. If Econet falls behind its competitors in terms of network quality or coverage, it may

lead to customer churn and a loss of market share.

Id. Technological Advancements: The telecommunications industry is rapidly evolving, with

new technologies and services constantly emerging. Econet needs to stay at the forefront of

technological advancements to remain competitive. Failure to adopt or adapt to new technologies

may result in losing customers to competitors who offer more innovative services. Gurel and Tat

(2017) regard technological as the panacea of the telecommunications business.

Ie. Regulatory Environment: The regulatory framework in which Econet operates can also

impact its competitiveness. D’Aveni mentions that changes in regulations, licensing

requirements, or government policies can create challenges or opportunities for the company.

Adapting to these regulatory changes while maintaining a competitive edge can be a complex

task.

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To address these challenges, Econet Wireless Zimbabwe Limited must focus on differentiating

itself from competitors by offering unique value propositions, such as innovative products and

services, superior customer service, and strategic partnerships. Additionally, continuously

investing in network infrastructure, improving operational efficiency, and staying abreast of

industry trends will help Econet maintain its position as a leading player in the Zimbabwean

telecommunications market.

II Critical Discussion

Competition in business can indeed be a double-edged sword. While healthy competition can

drive innovation, improve products and services, and benefit consumers, it can also pose

challenges and threats to businesses, particularly when intense competition leads to price wars,

decreased profit margins, and market saturation (Bock,2010).

In the case of Econet Wireless Zimbabwe Limited, competition has been a significant factor in

the telecommunications industry in Zimbabwe. Econet Wireless is one of the leading mobile

network operators in the country and has faced intense competition from other players in the

market, such as NetOne and Telecel.

One of the key challenges for Econet Wireless has been the need to differentiate itself from

competitors and maintain its market share. To address this, the company has implemented

several strategies:

IIa. Network expansion and quality improvement: Econet Wireless has invested heavily in

expanding and upgrading its network infrastructure to provide better coverage, improved call

quality, and faster data speeds. By offering superior network services, the company aims to

attract and retain customers.

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IIb. Product and service diversification: In response to competition, Econet Wireless has

diversified its product and service offerings. It has introduced various value-added services, such

as mobile money (EcoCash), mobile banking, and entertainment platforms. These initiatives

have helped the company to expand its revenue streams and increase customer loyalty.

"Relationship marketing builds and maintains long-term relationships with customers through

value creation and delivery" (Thaichon and Ratten, 2020)

IIc. Pricing strategies: Brown (2005) emphasize the need to be strategic in terms of pricing

Econet Wireless has employed competitive pricing strategies to stay competitive in the market. It

has adjusted its tariffs and introduced promotional offers to attract price-sensitive consumers.

Additionally, the company has implemented loyalty programs and bundled service packages to

incentivize customers to stay with Econet.

IId. Innovation and partnerships: To stay ahead of the competition, Econet Wireless has focused

on innovation and strategic partnerships. It has collaborated with technology companies and

content providers to offer innovative services and exclusive content to its customers.

Additionally, the company has invested in research and development to explore emerging

technologies and trends in the telecommunications industry. As mentioned by Gurel and Tat

(2017), technology is critical in the telecommunications business.

IIe. Customer-centrism approach: Econet Wireless has prioritized customer satisfaction and

engagement. It has implemented customer service initiatives, such as 24/7 support, self-service

options, and personalized offerings. By focusing on customer needs and preferences, the

company aims to build long-term relationships and retain its customer base.

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Despite the competitive challenges, Econet Wireless has managed to maintain its market

leadership in Zimbabwe's telecommunications industry. The company's ability to adapt to market

dynamics, invest in infrastructure, diversify its offerings, and prioritize customer satisfaction has

been instrumental in its success.However, it's worth noting that competition remains an ongoing

challenge for Econet Wireless and other businesses in the industry. As technology advances and

new players enter the market, the company will need to continue evolving and innovating to stay

competitive and address the changing needs of consumers.

III Application of Theory

PESTLE environmental analysis is used to understand the key factors that are likely to drive

change in your business environment. The aim is to then establish how these factors affect your

industry in general and more importantly your organization in particular (Fozer et al., 2017).

PESTEL Analysis is a framework used to analyze the external macro-environmental factors that

can impact a business or industry. Let's apply the PESTEL analysis to discuss how Econet

Wireless Zimbabwe can effectively compete with its competitors:

IIIa. Political Factors:

Zimbabwe's political landscape can significantly affect the telecommunications industry. Econet

Wireless should closely monitor government policies, regulations, and political stability. They

should maintain positive relationships with policymakers and ensure compliance with relevant

laws. By actively participating in policy discussions and advocating for favorable regulations,

Econet can create a conducive environment for its operations.

IIIb. Economic Factors:

Economic factors play a vital role in the competitiveness of telecommunications companies.

Econet should assess the country's economic conditions, such as GDP growth, inflation rates,
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and currency stability. By offering affordable and competitive pricing plans, targeting different

income segments, and addressing specific customer needs, Econet can maintain its market share

and attract new customers (Gummesson, 2002).

IIIc. Sociocultural Factors:

Understanding the sociocultural context is crucial for Econet to meet customer preferences and

needs. They should consider factors like cultural values, demographics, and social trends. By

adapting their products and services to suit local customs and preferences, Econet can gain a

competitive advantage. Additionally, investing in corporate social responsibility initiatives that

address societal concerns can enhance their brand reputation.

IIId. Technological Factors:

Technology plays a significant role in the telecommunications industry. Econet must stay

updated with technological advancements and invest in research and development. By

continuously improving their network infrastructure, offering innovative services, and leveraging

emerging technologies like 5G or Internet of Things (IoT), Econet can differentiate itself from

competitors and attract tech-savvy customers (GUrel and Tat, 2017).

IIIe. Environmental Factors:

Increasing environmental concerns require businesses to adopt sustainable practices. Econet can

focus on reducing its carbon footprint by investing in renewable energy sources, promoting e-

waste recycling, and implementing energy-efficient network infrastructure. By positioning

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themselves as an environmentally responsible company, Econet can enhance its brand image and

appeal to environmentally conscious customers.

IIIf. Legal Factors:

Fozer et al (2017) explain the need for making sure tha companies are well versed with legal

factors.Compliance with legal regulations is crucial for Econet's success. They should monitor

and adhere to laws related to telecommunications, data protection, privacy, and competition.

Staying updated with any changes in legal frameworks and ensuring ethical business practices

will help Econet maintain a competitive edge and build trust among customers.

In summary, to shrug off competition from its rivals, Econet Wireless Zimbabwe should

proactively address the various elements of the PESTEL analysis. By adapting to political,

economic, sociocultural, technological, environmental, and legal factors, Econet can strengthen

its market position, improve customer satisfaction, and stay ahead of its competitors.

IV Conclusion

In conclusion, this essay has highlighted competition as a major problem within the

telecommunications industry paying particular attention to what Econet Wireless Zimbawe is

facing, examining its implications through the lens of the PESTEL framework. By critically

discussing the issues and potential solutions, it becomes evident that addressing the competitive

challenges in this sector requires a comprehensive and strategic approach.The PESTEL analysis

shed light on various external factors that contribute to the intense competition in the

telecommunications business. Henderson et al (2020) mentions technological advancements,

globalization, and the deregulation of markets have resulted in increased rivalry among industry

players. Moreover, the rapid pace of innovation and the emergence of disruptive technologies

have further intensified the competitive landscape.

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To address these challenges, several measures can be implemented. Firstly, fostering

collaboration and partnerships within the industry can lead to shared resources, expertise, and

infrastructure, ultimately reducing costs and enhancing competitiveness. By working together,

telecommunications companies can leverage their strengths and create synergies that drive

innovation and improve service quality.

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