Essays on Mobile Phone Company in Africa Case Study

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The paper "Mobile Phone Company in AfricaDue to globalization and technological advancement, the business environment is volatile, uncertain, and complex. It is very difficult to predict the future of this environment since the internal and external factors keep on changing (Stacey, 2011). In order to remain competitive, companies are looking for opportunities in foreign markets. Mobile companies have realized the opportunities available in Africa which led them to access the market (Aker and Mbiti, 2010). Mobile telephony in Africa was considered the first modern telecommunication infrastructure that improved the lives of people and led to economic development.

It is no longer that mobile phones were new devices for many people living in Africa. However, in less than a decade, the situation has shifted as a result of the entry of mobile telephony (Ibrahim, 2012). Mobile phone usage has increased over the years with more and more people owning the gadget. The introduction of mobile phones in Africa was attributed to the works of Mo Ibrahim who battled the standard of people in Africa through telecommunication (Ibrahim, 2012). This report will highlight the opportunities and challenges faced by mobile telephony in Africa.

It will also examine how leaders perceive value as a way of creating knowledge at different stages of organizational development. Mobile Telephony in Africa Mobile telephony has spread fast in the last decades and there is an estimate of about two mobile phones per person in Africa (Ibrahim, 2012). In 2000, Africa has a limited number of fixed-line networks. Mobile telephony providers such as Zain, Celtel and Airtel took advantage of this and implemented a diffusion strategy for mobile networks (Ibrahim, 2012).

Mo Ibrahim saw an opportunity for mobile telephones in Africa and entered the telecommunication industry (Reid, 2015). Today, the coverage has reached about 90% of the continent. The introduction of mobile technology in Africa created many benefits to the territory as it enabled people to bank, shop, communicate as well as trade using their cell phones (James and Versteeg, 2007). In addition, the economy also improved and employment opportunities increased. In addition, countries in Africa have experienced development and an increase in the GDP rates due to mobile telephony.

The success of mobile telephony such as Celtel was attributed to lack of competition as well as inapplicability of licensing (James and Versteeg, 2007). Opportunities Enjoyed by Celtel in Africa According to James and Versteeg (2007), the mobile industry in Africa is considered to have the biggest opportunities of the century. Research suggests that Africa is among the largest growing mobile telephone market. The mobile telephony industry is growing at a very fast rate and the total number of cell phones used is almost 1 billion in Africa alone. The mobile telephone industry has attracted foreign as well as local players.

On average, in 2011, the revenue gotten from the mobile telephony industry was $40 billion. Across all social classes, people in Africa have embraced cell phones (Katungi, Edmeades, and Smale, 2008). Cell phones are not only for people living in urban areas, Africans living in rural areas now use cheap and basic cell phones. This offers an opportunity for mobile telephony to access a larger market share. Africa is only dominated by the first wave of mobile phones.


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