@segemia, i don't want to become a wazua lecturer but smaller firms vs dominant firms (marginal means those making smaller amounts or margins or dealing with small groups), at the end of the day the easy way out is for safcom to cut it's price immediately as a response to small firms cutting theirs, why?
1. They have the volumes and majority prefer their services (which means those in smaller firms are there not by choice but by savings or number loyalty e.t.c, they may just switch to safcom)
2. With larger volumes, they will have better economies of scale and should cope with the reductions better.
Safaricom should respond to price cuts fastest, they need to forget about turning out huge profits in the short term, it may hurt them long term.
Ras Kienyeji Man