MacD, As much as I believe in you, I hope you don't take up such an assignment. Both companies have been in existence for several years and both face very different challenges. AK needs to defend it's marketshare in both home and corporate. Home, eeeh having wireless compete with GPON (FTTX) and 3G, I can't see how you can turn around that business. Corporate, queen bee has existing relationships and solid processes for installation and customer support. It's unlikely that they can churn customers. KDN, sijui niseme nini, Customer Service, Quality of Service have always been issues that they have not hacked several years later on. I worked there and a number of people in this list and they attest the same. FTTx rollout has taken longer than expected and they are loosing ground. Queen bee is moving into FTTx as well as another company which will remain un-named and this will be on open access model. If you decide to go for it Good luck. The numbers will judge you. My two thoughts Kiania D On Fri, Jun 17, 2011 at 2:58 PM, Joseph McDonald <mcdonaldoj@gmail.com>wrote:
Am sure AK and KDN are in a tricky situation due to the losses,but am sure they can turn it around.
In the short run (30-90 days) these companies can have 30% reduction of cost, Increase of revenue and customer satisfaction by doing Process Innovation.
Many companies try to gain competitive advantage through structure, size and even their product portfolios—but frequently create complexity that customers are unwilling to pay for.You see structure and even products can be copied,its only when structure,size and products are mixed with good process only then can a company get sustainable competitive advantage.
The process innovation will actually involve linking process to customer value and profitability.
Telecommunication service is something all of us are familiar with, most of us use, and many of us rely on as an integral part of our daily lives.
With a product (Internet) that has such broad appeal, it would seem logica l that telecommunication providers would act aggressively to establish a c ompelling offering,one that differentiates itself from the rest of the mar ket place.
Nothing could be further from the truth.
Because we know that process innovation is the primary driver behind compe titive differentiation it would logically follow that the customer-facing processes of these businesses would undergo intense scrutiny in the effort to evolve their competitive differentiation. In Kenya, the established telecommunication service providers have instead opted to focus on gizmos, glitz and combative marketing campaigns that set unrealistic customer expe ctations that are impossible for the business to actually deliver on.
In fact, the industry carries such an excessive overhead (inefficient pro cesses) with a glaring track record of horrible customer service and satis faction that the only way they have found to make minimal profit margins i s by grace of the almighty or forcing customers to buy service contracts.
Without these service contracts, the Causes of Work and process Points of Failure leech away any hope of profit for these companies.
The way forward is to have an outside-in approach and identify the moments of truths (interaction with the customer).
I know it sounds generic and academic but it has been done before notably by Jan Carlzon when he transformed SAS from USD 17 million loss to a USD 54 million profit in 1 year,using the same methodology.
I would be willing to assist any of these companies with my expertise in this area.
On Fri, Jun 17, 2011 at 2:41 PM, David Kiania | Asentric Consulting Ltd < kianiadee@gmail.com> wrote:
I don't think MTN can hack this market it's way too competitive for them and the margins are far from ideal. Last but not least their country of origin ...eeeh ya!
AK had been approached buy Mweb for acquisition before AFSAT , initial discussions completed and final numbers arrived at. But the Founders exaggerated their cash ambition and they were left high and dry. Currently they are worth a fraction of what was on offer at the time.
Kiania D
On Fri, Jun 17, 2011 at 2:34 PM, Joram Mwinamo <joram.mwinamo@gmail.com>wrote:
Do i See MTN bidding to buy Essar, then AK?
On Fri, Jun 17, 2011 at 2:07 PM, [ Brainiac ] <arebacollins@gmail.com>wrote:
call it doomsday prophesy but i am predicting.
Queen Bee is gonna swallow them all.....
On Fri, Jun 17, 2011 at 2:00 PM, David Kiania | Asentric Consulting Ltd <kianiadee@gmail.com> wrote:
Two major Internet players to hit the headlines on the today with quasi adverse mentions. In todays Business Daily KDN has been hit by mass exodus of talent and will be replaced by mainly South Africans (yes South Africans) http://bit.ly/mPpT8D and Access Kenya is merging it's businesses and the underlying numbers look scarcely. http://bit.ly/irHphP
AK lost an amazing KES. 134m in FOREX loses ONLY and also saw their revenues decreased by KES. 300m from 2billion to 1.7billion ouch. In the intervening year AK has not made notable investment in infrastructure or marketing so the revenue is bound to decline even further. I also think the Safaricom assault on their corporate business and Airtel heading that way ... shareholders have a right to be very concerned.
Only time will tell how these companies would do but even with impending changes at KDN would we prefer a better managed company by foreigners or we really don't care? As far as AK is concerned ...
My thoughts
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