Safaricom PLC and Mpesa Business & Marketing Term Paper (Term Paper Sample)

Safaricom PLC and MPESA
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In everything we do, we must make choices on what to do since we cannot perform more than one thing at a time. This is the same scenario for any organization. It must make decisions on the best strategies to adapt and implement for it to remain viable. Furthermore, it helps business entities determine the best course of action to gain and maintain a competitive advantage. Safaricom PLC is among one of the most influential mobile network operators in East Africa. The company is the largest mobile communication entity in Kenya with its headquarters located in Nairobi. Safaricom Plc offers integrated telecommunication services which include mobile voice, SMS, data, and M-PESA services. Additionally, it provides financial services and business solutions to the private and business sectors. The company also offers mobile handsets, routers, and other communication equipment as well as offering bill payments and bulk payments. The M-PESA service has transformed the company to become the leading financial entity in the country and increasing Safaricom`s market share.
Before we discuss the impact of M-PESA, it is vital to understand the history and operations of the company. It is the most profitable organization in East and Central Africa and controls close to 65 percent of the Kenyan telecommunication market. It has around 26 million subscribers in 2019. Safaricom was established in 1997 as a subsidiary of Telkom Kenya, the only mobile network in Kenya at the moment. In 2000, Vodafone Group of the United Kingdom bought 40% of the shares and assumed management. In 2008, 25percent of the shares belonging to the government were offered to the public through the Nairobi Stock Exchange. The company employs over 5,000 people (Burns, 2018).