This is a very aggressive and most likely, a huge loss-making move in the short-run. I hope Zain has a well crafted (sustainable) longterm strategy.
If they are simply 'playing politics' against a 78% market leader (Safaricom), then they will eventually price their way out of the Kenyan market.
Kencell losses
>>> Celtel losses
>>> Zain losses
>>> AirTel losses
>>> oblivion (or market leadership)
My opinion is not influenced by my 'Safaricom shareholder/MPESA user' status ;-)
Wainaina
On Mon, Aug 30, 2010 at 11:43 AM, Alex Gakuru
<gakuru@gmail.com> wrote:
BY MICHAEL KARANJA
Updated 13 minutes ago
NAIROBI, Kenya, Aug 30 - Mobile telephony operator Zain Kenya has
introduced Sh5 and Sh10 denomination airtime vouchers as it steps up
its efforts to capture the mass market.
The introduction of the new vouchers is seen as a move to make the
operator more accessible to the low-end market after a change in
strategy following the entry of its new shareholders, Bharti Airtel.
Zain Kenya Managing Director Rene Meza said the move is aimed at
complementing its recent 50 percent reduction of call charges.
“We are offering a wide range of scratch card denominations to suit
the needs of all individuals. Access to telecommunication services is
no longer a luxury but an integral part of each Kenyan’s
socio-economic needs,” Mr Meza said.
....
Read more: http://www.capitalfm.co.ke/business/Kenyabusiness/Zain-Kenya-makes-another-move-4606.html#ixzz0y4pjzlUG
Under Creative Commons License: Attribution Non-Commercial No Derivatives
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