This presentation focuses on two concepts namely: competitive environment and SWOT Analysis of Econet Wireless International. The acronym ‘SWOT’ stands for strengths, weaknesses, opportunities, and strengths. Under the competitive environment and SWOT analysis, appropriate strategies, especially its entry into South African market will be explored in the following paragraphs.
The competitive environmental analysis is very critical to the company because it can lead to prosperity or affect the operations at the organization. Indeed, the company has both internal and external competitive environments, which interrelate to make it either fail in its objectives or be successful. For this case, the focus is on impacts of the external environment on the company strategy. Since the Econet Wireless International products came into the African market, the company started interacting with the external environments, which had great affect on its strategic operation. Some of the company mobile telephony products and services were specially designed for those who like luxury and provided them with the comfort they desired. Notably, Econet Wireless International brands gained acceptance and popularity in the Zimbabwean market and high income people began to use them as the preferred mobile telephony products and services. As a result, it increased the company’s interaction with the external environment that interfered with the relationships among the internal players, by exerting pressure and influence on its operations.
The external environment that affected the operations at the company included the competitors, customers, suppliers’ attitudes, and the government influence. The major competitors of the company have been Vodacom, MTN, Luxembourg, Orascom Telecom, and Kuwait’s’ MTC. Econet Wireless International brands are still globally recognized because of their high quality and unlike other mobile telephony companies because it manufactures a range of luxurious mobile telephony products and services to suit the high class in society.
The other external environment that had relative influence on the company strategy was the consumers and suppliers. The products and services that the company offered have, for a long time, been both innovative and stylish so that they could satisfy the market demands, thus attracting many users who specifically preferred them to other brands.
The suppliers were also part of the external environment that played a role in affecting the strategic operations of Econet Wireless International. Though the suppliers maintained the operations of the company through supplying the materials needed for manufacturing the mobile telephony products and services, the management of Econet Wireless International had to uphold the company strategies so that it could minimize the affects on the company. The mobile products and telephony services gave the company the necessary mileage to become one of the most recognized brands in several parts of the world, in the mobile telephony industry.
In marketing, the influence that the government exerts on the business in terms of the rules and regulations affect the company’s operations, which makes the latter changes its strategic approach to the company operations. For example, the government might initiate market regulations, which are thought to be important for the management of the company in the coming years, yet such regulations may turn to be inappropriate for the organization. Therefore, the company had to develop strategies to exploit the market in order to make the brand more visible. However, the management of Econet Wireless International analyzed the external environment, particularly the government regulations and restrictions on issuing business licenses. In essence, this facilitates understanding the opportunities and threats in the market. The external environment, particularly the consumers and suppliers of the company were conducted based on their relationship with, or attitudes towards the luxurious mobile telephony products and services.
The company draws its strength from the revelation that the premium products will continue to stay in the global market. The second strength is that those high quality products and mobile telephony services will maintain and possibly increase growth internationally. The other factor that strengthens the operations of Econet Wireless International is rate increase rate of growth of mobile telephony products and services, compared to the ones of demanded in mass market. The company has various product ranges to offer. Moreover, it places special importance on technological development of the various segments of the business. The company thrives on innovation. Econet Wireless International has well-developed marketing strategies.
The prices of the products are on the higher sides, thus blocking other interested buyers living in the lower income category. The economic conditions in the Europe, America and Asia, which constitute the larges and primary market, have deteriorated in recent years due to unprecedented financial crisis. Indeed, such changes have affected the operations at the company, and have contributed to its weaknesses. The company has not been able to promote its other products other than mobile telephony services, thus not been able to attract a larger market from the business communities using mobile money transfer services.
Technology in the company has also developed indicating that the company will benefit from promotion. The emerging world market provides a great opportunity for the company on a global platform. The company’s incubation of efficiency dynamics presents and opportunity for future growth. In addition, the company has established market in several parts of the world, especially Africa that forms its security and opportunity for further development. Furthermore, the people always demand luxury, and since most of the company’s mobile telephony products and services depict this quality, it has opportunity for further growth and development.
The rules and regulations of the mobile telephony industry have changed, thus provides a challenge for the company. There has been a rise in regional and international competitors such as Vodacom, MTN, Luxembourg, Orascom Telecom, and Kuwait’s’ MTC. In sum, the price of raw materials for mobile telephony products and services is expected to rise in the future, thus threatens the company operations. Finally, the other threat to the company includes the lifecycle factors, global economic downturn, international depression, and financial crisis.