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Home Blog Page 6038

Tekedia CaseWorks – Transsion Holdings (Tecno, Infinix and itel)

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Our business case study on Transsion Holdings is ready. We have looked at how a foreign mobile phone brand came into Africa and found a massive opportunity. Transsion which controls Tecno, Infinix and itel brands is the dominant smartphone company in Africa. It overtook Samsung, after crushing Nokia. This company has demonstrated the power of going beyond customer needs to their expectations and perceptions. 

Yes, most people in Nigeria and Africa carry two phones because network services are sub-optimal, varying across locations. Transsion saw an opportunity and made it possible for phones to have double sim cards. That solved a huge problem: if you are in big cities where most networks work well, no issues. But if you are traveling out of cities, there is that chance only one network will serve you in that location. Magically, the option of a double sim gives you an edge to buy that network sim card and continue with your business.

Tekedia CaseWorks is exclusive for our Tekedia Mini-MBA program. Registration for a new edition has started.

Access Bank Boycott: Source of Action Versus Customer Protection, Implications for the Brand Credibility

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Social media influencers campaign for the boycott of Access Bank has further shown the extent to which social movement can impact businesses in Nigeria.  As exemplified by the action of the influencers and other social media users in the last few hours, it is clear that customers and non-customers can collectively work towards calling the bank’s attention to the need to protect its customers despite expected regulator’s action in a challenging time like this.

In its response to the campaign, the bank notes that “We want to express our sympathy for the inconvenience that eight of our customers are going through due to the restrictions on their accounts as mandated by a federal court order. We are eager for this to be resolved as soon as possible

“It is common knowledge that we and the entire banking industry are regulated entities and therefore operate under the authority of our regulators and law enforcement agencies. As such we are compelled to comply with regulatory directives.

“While acknowledging the concern of all well-meaning parties, we urge that enquiries and views be channeled to the relevant regulatory and judicial agencies where the matter is receiving attention. It is therefore surprising that some individuals still choose to target Access Bank in a negative manner despite not being the source of the action.”

Ignoring the Signal

Looking at the statement, it is clear that there is a conflict of protectionism. The bank took the action in the interest of security issue the government linked to the protests. This is, however, done at the expense of protecting customers. While taking the action, our analyst observes that the bank believed that impacts would not be severe since it affects few customers. Issuing a press statement suggests that bank is experiencing the outcomes of its action already and customers and non-customers have access to different information.

Access Bank Credibility

In the next few days, our analyst expects more impacts in terms of reduction in the number of people who patronise the bank through the digital banking platforms and physical outlets. This is hinged on the fact that they have ability to interpret the information differently. The management of the bank needs to work on its credibility issues such as poor customer engagement. This is necessary because “the more customers perceive a brand at a higher level of credibility, they are less inclined to engage in boycott activities against the brand.”

Sote Raises $3 Million On Mission To Integrate Customs Clearing and Digital Logistics

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Congratulations Felix Orwa and team for raising a $3 million seed round for Sote. We are watching Sote. It elevated the game by actually becoming a licensed tech-enabled customs clearing and forwarding service provider while providing a digital logistics infrastructure in its orchestration model. Of course, that is easy in East Africa.

The company’s software can serve as a workflow tool to manage freight clearing and forwarding as well as a dashboard to track shipment status, payment history and the estimated arrival time for containers.

Sote was founded by the Kenyan native Felix Orwa and co-founders Meka Este-McDonald, a former product manager at Verizon and Gigster, and Scott Yacko a former director of software engineering at Amazon and director of architecture at Walmart.

MaC Venture Capital puts the total addressable market that Sote could tap at roughly $20 billion, given the company’s vertical integration.

In Nigeria, it remains challenging to digitize that process. Zido Logistics is working to make that happen in West Africa by building our “Africa’s DNA of Logistics” system to be “integrated” with customs so that our ecosystem partners can experience a better equilibrium in our platform. Ideally, at optimum equilibrium, ecosystem members should have 360-degree transparency and visibility across the chain, limited by the customs ordinance and technological capability.

This sector is big, and all players can play. To a large extent, the logistics sector remains at infancy. Congrats Sote.

PUGB Plans to Return to India With a New Game and $100m Investment

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After fallout with the Indian government two months ago, PUBG Corporation is planning a return to the Indian market with a new avatar and $100 million investment. The South Korean company said on Thursday it’s launching a new game for the world’s second largest market, called PUBG Mobile India.

India is one of the largest markets of PUBG, and its parent company, KRAFTON said they plan to invest $100 million there to cultivate the local video game, esports, entertainment and IT industries ecosystems. The investment is expected to create more than 100 jobs in the country.

“Thanks to overwhelming community enthusiasm for PUBG esports in India, the company also plans to make investments by hosting India-exclusive esports events, which will feature the biggest tournaments, the largest prize pools, and the best tournament productions,” the company said in a statement.

PUBG was among many games cut down by the Indian government in its clampdown on apps of Chinese origin. The border conflict between India and China that started in the middle of the year prompted New Delhi to ban nearly 200 apps from China, including TikTok. Although PUBG is South Korean, the game’s company relationship with Chinese Tencent placed it in the list.

To stay in the Indian market, PUBG has broken up with Tencent, allaying the country’s national security fears.

“Moving forward, PUBG Corporation will take on all publishing responsibilities within the country. As the company explores ways to provide its own PUBG experience for India in the near future, it is committed to doing so by sustaining a localized and healthy gameplay environment for its fans,” v the company said in statement then.

A game

Tencent had been PUBG’s publisher in many markets, including India, until the ban on Chinese apps. PUBG had signed a deal with Microsoft last week to host all of its mobile data to Azure cloud.

The game company said the move has become necessary to protect privacy and data security in India, which it thus sees as “top priority.”

“Privacy and security of Indian player data being a top priority for PUBG Corporation, the company will conduct regular audits and verifications on the storage systems holding Indian users’ personally identifiable information to reinforce security and ensure that their data is safely managed,” the company said.

PUBG was leading in the Indian game market with over 50 million monthly users before the ban in early September. Its impact was notable in the esports ecosystem. According to Indian game analyst Rishi Alwani, PUBG helped establish an entire ecosystem of esports organizations and even a cottage industry of streamers that made the most of its spectator sport-friendly gameplay.

The Indian government has not responded to the changes made by PUBG Corporations, and it is not clear how it will react. However, other non-Chinese apps banned due to their ties with China could follow the steps of PUBG if New Delhi eventually lifts the game company’s ban.

In this era of game, when more companies are jumping into the industry, looking for markets, PUBG is fighting to hold on to its lead in the second largest market in the world.

Innoson Motors Launches A Ride-hailing Service, IVM Cruise

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Innoson Vehicle Motors launches its brand of ride-hailing service, IVM Cruise, today. It begins at Enugu with other cities coming. The IVM Cruise ride-hailing service from Nigeria’s foremost vehicle manufacturing company is unique as it offers drivers, aptly named pilots, a chance of becoming owners of brand new Innoson vehicles after a period of three years in which the cost of these vehicles would have been paid.

IVM Cruise is a technology-driven ride-hailing service. It offers commuters a platform for requesting pickups and drop-offs from their various locations to their destinations. The IVM Cruise service is designed to operate on an incremental digital architecture in line with modern trends in the city transportation industry.

As I noted when this service was originally announced, this is a great playbook. Yes, no matter what happens, profit or loss in the ride-hailing business, this service will make Innoson vehicles popular on the roads and will then push many people to go and buy them. It is a slam dunk: I am seeing these cars everywhere, and I am going for one myself. Call it a great double play strategy.

This is a double play strategy. He can lose money on this but in that process, he will create a brand where IVM vehicles become common on the streets. Just like that, everyone goes for IVM. Brilliant call by the legend as he can capture value via sales through brand awareness triggered by IVM Connect.

The risks are on the aggressive two year hire purchase plan which I think may not be possible. Also, the vehicle-hailing business has not shown capacity to be profitable at scale anywhere. But the little losses may bring popularity through awareness this will bring.

When great entrepreneurs emerge, nations rise. Well done Innoson Motors.

Innoson Motors Takes Uber, Bolt via IVM Connect in Nigeria

Innoson Vehicle Motors – Brand Photos with Prices

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