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The Influence of Innovation on Competitive Advantage: A Case of Mpesa

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dc.contributor.author Arunda, Charles Opiyo
dc.date.accessioned 2015-07-29T09:03:02Z
dc.date.available 2015-07-29T09:03:02Z
dc.date.issued 2015
dc.identifier.uri http://erepo.usiu.ac.ke/11732/579
dc.description A Project Report Submitted by Charles Opiyo Arunda, to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA). en_US
dc.description.abstract The purpose of the study was to examine how MPESA innovation has influenced competitive advantage of Safaricom. The research sought to answer the following questions: what is the influence of MPESA innovation on Safaricom’s competitive advantage as measured by market-share, profitability and customer loyalty? What product attributes make MPESA innovation attractive to customers? What benefits do MPESA innovation offers that earns Safaricom’s its competitive advantage? This research adopted a descriptive research design. The population comprised 65,547 MPESA agents and 2,700 Safaricom staff. Stratified random sampling technique was used to select a sample size of 384 respondents. Data was collected using a structured questionnaire. Correlation technique was used to analyze data. The data was analyzed using SPSS and presented in figures and tables. The findings showed that in terms of the influence of MPESA innovation on Safaricom’s competitive advantage, the innovation was strongly and significantly correlated to Safaricom’s market share and customer loyalty. With regards to product attributes that make MPESA innovation attractive to customers, majority of the respondents found money transfer function the most attractive. Concerning the benefits MPESA innovation offers that earns Safaricom’s its competitive advantage, there was a weak positive correlation between Safaricom’s competitive advantage and MPESA’s reliability, ease of use, affordability, speed of transaction, accessibility, convenience and security of transactions. It was concluded that MPESA innovation positively influenced the competitive advantage that Safaricom enjoyed in terms of market share and customer loyalty. The most popular functionality was the transfer of money through the send money and withdraw cash feature. Most of the benefits of using MPESA had a weak influence on Safaricom’s competitive advantage. It was recommended that Safaricom should increase its market power in the financial sector by aggressively marketing services such as M-shwari. It should collaborate with high-traffic retail outlets such as Nakumatt and institutions such as schools to come up with a loyalty program similar to the Bonga Points loyalty scheme. A research on the usage of mobile money transfer services of Safaricom’s competitors could be conducted for comparison. en_US
dc.publisher United States International University - Africa en_US
dc.subject Innovations en_US
dc.subject Competitive Advantage en_US
dc.title The Influence of Innovation on Competitive Advantage: A Case of Mpesa en_US
dc.type Thesis en_US


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