a) Explain the Corporate strategy being pursued by Econet Wireless [5

Marks]
Econet Wireless Zimbabwe is following a corporate strategy that seeks to change its
commercial focus away from traditional voice services and towards value-added non-voice
services like as data services, EcoCash, and other overlay services. The realisation that
mobile penetration rates in Zimbabwe have surpassed 100% drives the company's strategy,
showing that the voice services industry is maturing. As a result, the firm wants to capitalise
on new sources of revenue growth and margin expansion by creating and growing its non-
voice service offerings. The plan has proven effective, as non-voice services now account for
21% of Econet's income, up from less than 10% the previous year. Since the business began
implementing the approach, the contribution of these goods to Econet's revenue has increased
by 96% (Econet Wireless, 2014). Econet Wireless intends to continue investing in this sector
in order to increase revenue growth. However, the corporation recognises the value of voice
services and aims to keep them available as an essential service offering (TechZim, 2014).
The corporation intends to spend in increasing service quality and customer care for its voice
services. According to Econet Wireless (2014), Econet Wireless Zimbabwe's business
strategy is a conscious effort to diversify its income sources by focusing on non-voice
services while retaining high-quality phone services.

(b) Comment on the above corporate strategy in the context of the three tests of a good
and winning strategy.

The corporate strategy pursued by Econet Wireless Zimbabwe can be evaluated in the

context of the three tests of a good and winning strategy, namely the Fit Test, the Competitive
Advantage Test, and the Performance Test.

1. Fit Test: A strategy must fit the external and internal environments of the
organization.

Econet's strategy to shift focus from voice to non-voice services is a good fit for the
external environment. With mobile penetration rates in Zimbabwe exceeding 100%, the
voice services business is developing, and new income sources must be explored. The
strategy of Econet to create and grow non-voice service offerings is in line with the
external environment (ITWeb Africa, 2014). Internally, the plan suits the competencies
and resources of the organisation. Econet have the necessary technological and financial
resources to invest in the development of non-voice service offerings. Furthermore, the
 vision and purpose statements of the organisation demonstrate a dedication to providing
high-quality telecommunications services, which is consistent with the strategy. The
strategy so passes the Fit Test.

2. Competitive Advantage Test: A strategy must create and sustain a competitive

advantage for the organization.
Econet's strategy of focusing on non-voice services intends to provide the company a
competitive advantage. Econet tries to separate itself from competitors who may be only
focused on phone services by increasing its non-voice service offerings. Econet's competitive
advantage in non-voice services may provide it an advantage over its competitors as non-
voice services become an increasingly important income source (Econet Wireless, 2014).
Furthermore, Econet's effective strategy execution has resulted in a large rise in income from
non-voice services. This suggests that the approach is giving the organisation a competitive
edge. As a result, the strategy has passed the Competitive Advantage Test.

3. Performance Test: A strategy must deliver superior performance for the organization.

Econet's strategy has delivered superior performance for the organization, as evidenced by
the significant increase in revenue from non-voice services. According to Econet Wireless
(2014), EcoCash members increased from 3 million in August last year to 3.7 million this
year, while broadband subscribers increased from 3.6 million in August last year to 4.7
million this year. Furthermore, the number of agents has more than doubled, from 7,000 last
year to over 15,000 now (TechZim, 2014). In addition, the approach has resulted in a 96%
increase in the contribution of non-voice services to Econet's income (ITWeb Africa, 2014).
These performance measures show that the approach is providing superior results for the
organisation. The approach so passes the Performance Test.

c) In the case, it has been highlighted that Econet’s voice services are beginning to
mature.

i) Discuss the strategic options that can be adopted by Econet Wireless for its Voice
Service market.

Given that Econet Wireless Zimbabwe's voice services market is beginning to mature, the

company has several strategic options to consider. These include:

a. a. Maintaining the status quo: Econet can continue to spend at its present level and
focus on its existing voice services offers. To keep its existing consumers, this
 strategy would entail continuing to deliver high-quality phone services while
maintaining competitive pricing.

b. a. Expanding voice service offers: Econet can expand its voice service offerings to
include new services and features that distinguish its voice services from those of its
competitors. For example, the corporation may invest in value-added services like
video conferencing, virtual personal assistants, and other cutting-edge voice services.

c. c. Combining voice and non-voice services: Econet may combine voice and non-voice
services, such as data and EcoCash, to develop new solutions that appeal to customers
and enhance income. This option may also assist Econet in retaining current
customers while recruiting new ones.

d. d. Expansion into new markets: To enhance its client base and income, Econet may
consider extending into other areas outside of Zimbabwe. This strategy would include
investments in new infrastructure as well as collaborations with local mobile network
carriers in other nations.

e. Partnership and collaboration: Econet can collaborate with other companies in

the mobile telecommunications industry to develop new voice services offerings. For
example, the company can partner with technology companies to develop
innovative voice services offerings that differentiate it from its competitors.

ii) In light of the above characteristics, comment on the vision and mission
statement for Econet Wireless Zimbabwe
[5 marks]
Econet Wireless Zimbabwe's vision statement is "To provide telecommunications to all
the people of Zimbabwe," while its mission statement is "To serve Zimbabwe by
pioneering, developing and sustaining, reliable, efficient and high-quality
telecommunications of uncompromising world-class standards and ethics " (Econet
Wireless, 2014). In light of the characteristics of a good vision and mission statement,
Econet's statements are effective in several ways:

 Simple and direct: The remarks are simple and direct, giving the business a clear
and comprehensible direction. The mission statement describes the company's
strategy for achieving the vision statement's ultimate objective (Reuters, 2014).
 Future-focused: The vision statement is future-focused and outlines the
organization's long-term goals. According to the statement, Econet wants to serve
all Zimbabweans, regardless of where they live or how well off they are, in order
to establish itself as the top telecommunications company in the country (Econet
Wireless, 2014).
 Relevant and meaningful: For the company's stakeholders, such as workers,
clients, and investors, both assertions are pertinent and significant. The remarks
demonstrate the company's dedication to provide top-notch telecommunications
services that are tailored to the requirements of Zimbabweans.
 Inspirational: The statements are inspirational, providing a sense of purpose and
direction for the company. The declarations can draw clients and investors who
share the company's beliefs and motivate staff to strive towards a shared objective.
 Flexible: The statements are flexible, allowing the company to adapt to changing
market conditions and customer needs. The statements do not limit the company
to a specific product or service but rather provide a broad direction that can be
interpreted and implemented in different ways.
REFERENCES

1. "Econet Wireless Zimbabwe Turns to Data and Cashless Transactions," Bloomberg,

September 2014.

2. "Econet Wireless Zimbabwe Sees Profit Rise on Strong Non-Voice Business,"

Reuters, November 2014.

3. "Econet Wireless Zimbabwe Shifts Focus to Non-Voice Services," TechZim,

September 2014.

4. "Econet Wireless Zimbabwe's Strategy to Steer the Business Towards Value-Added

Services Is Beginning to Bear Fruit," ITWeb Africa, November 2014.

5. "Econet Wireless Zimbabwe - Half Year Results Presentation," Econet Wireless

Zimbabwe, August 2014.