The Crazy Profits of Safaricom

Safaricom Limited just registered profits of more than 38 billion shillings after tax. These are crazy profits and Safaricom is indeed a king in the telecommunication sector.

Many questions are being asked from this. Safaricom has never made losses. The company has been moving from one level of profit making to another level. The questions, therefore are:

1. What makes Safaricom tick?
2. What makes Safaricom stand out despite their rates being higher than their competitors?
3. What is Safaricom doing that other companies are not doing?

Making profits worth more than 38 billion shillings while others are making as much as 27 billion shillings in losses is just crazy. If power has force, then where does the power of force come from?

Safaricom established its brand many years ago. The company came with a tradition and forced it into Kenyans. Kenyans accepted this tradition and embraced it. It is, therefore, very difficult to convince people to move away from their tradition.

Read: Equity and Safaricom Biggest Movers

Safaricom is everywhere. As compared to their competitors, Safaricom is all over Kenya. Everyone knows the corporate colour of Safaricom. The essence of being everywhere instills a sense of confidence to their customers. People like associating with things closer to them as opposed to those far away.

Other ailing companies

There are two companies that are ailing in Kenya; Kenya Airways and Uchumi Supermarket. Although these companies are totally different in what they trade in as compared to Safaricom, but is there totally nothing that they cannot learn from Safaricom? Do the CEOs of companies in Kenya ever meet and exchange notes? Can Bob Collymore plan for a forum and teach his fellow CEOs on how to run a company? I do not think that the man is selfish and proud not to help other companies grow. He surely can do something. Kenya Airways is struggling and Uchumi is still at Intensive Care Unit. What should be done to bring them out of the woods?

Article by Juma Fred.