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Why safaricom must reduce its costs and expenditures to remain a viable stock in future
Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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alma, well said! GOD BLESS YOUR LIFE
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Safcom should be a case study in marketing. There are people willing to make fools of themselves in public just to defend what is essentially a British owned operation that repatriates the bulk of it's profits to London. True marketing success!! Business opportunities are like buses,there's always another one coming
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Rank: New-farer Joined: 7/19/2010 Posts: 98 Location: Kenya
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Finally. This is the proof that safcom is in deeeeep shit. I used to spend 250 per day previously. I make all the calls I need in a day an i donot deplete the 100 that am currently spending per day. And to quote my wife " Baba *****" how come my airtime doesnot finish nowadays".
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Rank: Elder Joined: 12/6/2008 Posts: 3,579
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@selah, you have one, we all know as investors to observe, the numbers support you. At the end of the day its business, let me give you my research, i check the calls i receive from zain, i have not been called from a zain number for the last one week (received two calls the week before), though i get at least 100calls a day. As adam smith would say, if the cost of beer should decline, the gentleman will not necessarily drink more, but the yeomanry certainly will. Ras Kienyeji Man
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Masaa tariff is a huge con. These guys are overcharging their customers deliberately. I loaded 100 this afternoon and after 13 minutes of calls to safcom numbers, i have only 14 bob! People watch out, you have been warned... Life is short. Live passionately.
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Rank: Elder Joined: 12/6/2008 Posts: 3,579
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Cck constantly monitors call billing, call dropping, uptake e.t.c and would instantly disconnect a 'con', wacha uwongo Ras Kienyeji Man
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Rank: Veteran Joined: 4/16/2010 Posts: 906 Location: Nairobi
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According to a Safaricom insider, here is their plan for the war:
Voice is, and will always be the core business of a mobile phone company. Anything said otherwise is just to maintain customer and investor confidence.
On that premise, Safcom are absolutely 100% sure that Zain's pricing model is unsustainable. So what was the reasoning behind Safcom's reaction? Safcom want to call Zain/ Airtel's bluff on their tariff. The contentious issue here being the promise of the tariff being 'forever.' Safcom has said that they will launch a one month 'Masaa ya Kubamba' offer. The great unknown is what will happen after this one month is over?
Safcom will decide to 'extend' their offer. On top of this, they will expand the reach of the offer to another service. Safaricom keep playing this game of Russian Roulette for the better part of a year, till one day, after realising that all the major profit avenues have been closed, Zain/ Airtel deals itself the inevitable fatal blow, and reneges on it's '3bob forever' promise. Customers feel betrayed, run back into the arms of their ex, Safaricom, who can now restore normal super-profits by declaring 'Masaa ya Kubamba' over. Meanwhile, the whole saga sends a chilling message to other operators that you just don't mess with Safcom.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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KenyanLyrics wrote:According to a Safaricom insider, here is their plan for the war:
Voice is, and will always be the core business of a mobile phone company. Anything said otherwise is just to maintain customer and investor confidence.
On that premise, Safcom are absolutely 100% sure that Zain's pricing model is unsustainable. So what was the reasoning behind Safcom's reaction? Safcom want to call Zain/ Airtel's bluff on their tariff. The contentious issue here being the promise of the tariff being 'forever.' Safcom has said that they will launch a one month 'Masaa ya Kubamba' offer. The great unknown is what will happen after this one month is over?
Safcom will decide to 'extend' their offer. On top of this, they will expand the reach of the offer to another service. Safaricom keep playing this game of Russian Roulette for the better part of a year, till one day, after realising that all the major profit avenues have been closed, Zain/ Airtel deals itself the inevitable fatal blow, and reneges on it's '3bob forever' promise. Customers feel betrayed, run back into the arms of their ex, Safaricom, who can now restore normal super-profits by declaring 'Masaa ya Kubamba' over. Meanwhile, the whole saga sends a chilling message to other operators that you just don't mess with Safcom. Bharti is one heck of a dirty player. They'll push it all the way and scom is surely cornered here. Bharti has two more cards to play - one on data and the other on mobile money. On data, they have nothing compared to scom. They can launch data at a cheaper rate since they got a cheap 3G license; that is a new price war turf. Two, they can also lower the zap fee from say 10/- to 8/- (20% down) to try and rope in more users. If scom was to match that, it would have to lower from 30/- to 24/- (still expensive) on Mpesa. I wouldn't underestimate a competitor that is flush with $ money and running an investment across the African continent apart from India (with its cut-throat competition). Vodafone has struggled when faced with Bharti, I don't see this one being any different.
For now I'm waiting for the relief rally to hit 5.10 - 5.40 before we go below 4.70 to 4.50. A break of 4.50 would see declines towards 3.80. That would be ideal for a long term entry. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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These are the kind of prices we should be enjoying, who cares about Zain or Safcon's profits? Let them bleed...I want 1 cent per sms!! http://www.gomonews.com/...r-is-getting-ridiculous/Business opportunities are like buses,there's always another one coming
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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LOL... I do NOT care who is losing money as long as I get cheap rates! If not for Zain/Airtel... we would be paying thru the nose! Asante to Zain/Airtel... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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