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South African Cell C Tops The Choice of Subscribers That Switch Networks

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BusinessLive reports about a new study has revealed that Cell C,  South Africa’s third mobile provider, is the provider of choice for customers who choose to switch networks. In a study done by Innovation Agency titled 2010 Telco Innovation Study, 47% of subscribers chose Cell C in a pool of 14% respondents that switched telecom providers.

 

While respondents cited a variety of reasons for swapping networks, disappointing customer service topped the list. Women were also more likely to switch than men, according to Innovation Agency.

 

“As the newcomer, and soon after their Trevor Noah campaign, it was not surprising that the results showed that Cell C were the biggest gainers,” said Rory Moore, CEO of Innovation Agency.

 

Additional findings from a sample of 456 people revealed that Vodacom has the biggest appeal among individuals over 50 and MTN () was a favourite among people under the age of 30.

 

Vodacom was rated as the most innovative telecoms company in SA by quite a margin in the 2010 study.

 

“What was quite interesting was correlating the demographic breakdown of the respondents with their rating preference – people over the age of 50 were the biggest group to rate Vodacom the most innovative provider. MTN was rated second overall with their biggest fans falling in the under 30 age group,” said Moore.

South Africa’s First Network To Operate On Dual Band Network, Cell C, Redefines Innovation

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Cell C is very unique among cellular operators, and it is  shaping the future of cellular communications today, in South Africa. This company’s strategy is built on innovation and it is doing that constantly. In Japan, they call it Kaizen – continuous innovation.

 

Launched in 2001, Cell C is South Africa’s third cellular operator with just under seven million subscribers. Check out how it described itself, “we are the possibilities provider”. It is about harnessing the power of the web to serve the needs, expectations and perceptions of its customers, very well. And it seems to be doing just that – count the number of firsts in this content from its site.

 

In 2010 we’re taking the lead in the mobile communications race. We were the first to operate on a dual band network. We were the first to offer cost-effective call options like per second billing. And we’re working on even more firsts right now, like building the first HSPA+ 900 network in South Africa.

 

Cell C looks to the future to bring you the technology of tomorrow today. That’s why, above all, Cell C is a provider of possibilities. Every day, more South Africans turn to us for simple, innovative, value-for-money products, exceptional customer service, and the promise of something even better to come.

 

In the age of the internet the only constant is change. At Cell C we see change as opportunity. So we’re connecting with our customers on Facebook, Twitter and MXit. We want to harness the power of the internet to serve you better.

Osuneye Olasunkami of Suky Marketing Communication Gets BMW 5 Series From Globacom Nigeria

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Glo

Globacom Nigeria rewarded top dealers of its Glo 3G High Speed Internet modem and prepaid Blackberry services. These are the elite performers in its distribution partner network. They spent money and awarded many prizes to their partners and associates.

But the highest of all and the best prize, by Tekedia judgement, is the one won by Osuneye Olasunkami of Suky Marketing Communication. He received BMW 5 series for winning the Glo 3G modem Business Associates Category.

Wunmi Jewesimi, Head of 3G and Blackberry Glo, noted that the reward scheme was introduced to appreciate the business associates for efforts in helping the firm succeed.  According to him “we are rewarding them for their outstanding performance and at the same time encouraging a healthy competition among all the 3G and Blackberry business associates, especially for the two products”.

East Africa Records A massive 76% Growth in PC Shipments in Q1 2011

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The PC market in East Africa strongly expanded in the first quarter of 2011, even as the worldwide PC market contracted and the pan-African market almost stagnated, according to a recent report by market research company IDC. While global PC shipments declined 3.2% year on year during the first three months of 2011 and the overall African PC market grew a marginal 1%, East Africa (including Kenya, Tanzania, Ethiopia, and Uganda) recorded a massive 76% growth in PC shipments. IDC expects that the East African PC market will further grow by about 35–45% in 2011 before cooling off in 2012.

According to the IDC report, the growth in Q1 2011 was fueled primarily by a healthy demand for notebooks, with Kenya showing the highest uptake. This quarter was a continuation of the dynamic development in 2010, supported by the resumption of commercial demand and strong advertising and promotion efforts by vendors, as well as their efforts to find new distribution channels and strengthen existing ones. This helped to stymie unofficial (gray market) shipments.

The report also said that consumer demand was dynamic in 2010 but relaxed in Q1 2011, due to a combination of factors that affected price levels, including unfavorable foreign exchange rates and inflationary pressures. In addition, competition between vendors caused consumer pricing to plateau, and thus prevented sellers from stimulating demand around attractive price points.

“We are continuing to see increased interest in the region from international investors, especially with Kenya’s new constitution, which is hoped to be fully implemented after the next general elections, Uganda’s oil discovery, and the formation of the East African Community (EAC) market, which has a combined population of over 130 million,” says IDC analyst Stanley Kamanguya. “Investors are looking at the region as the next frontier of growth, with Kenya as the hub.  Political risk will remain a key issue for investors, however. The extent of consequences of events in North Africa and the Middle East remains unclear, which will affect the market in the short term.”

Beyond Core Competence – You Must Keep Innovating

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The Eastman Kodak Company was an iconic industry leader. For decades, it was synonymous with photography. But it got stuck in its core competence of traditional film products and missed the rise of digital photography and printing. To survive, it has stopped selling film cameras, focusing on the digital ones that dominate the market. But it arrived late.

In 2005, IBM sold its PC division to its former competitor, Lenovo. In the preceding decade, IBM appeared to be headed into extinction. From one SEC filing, it revealed that it lost nearly a billion dollars on the PC business over three-and-one-half years. It sold this money-losing division systematically evolved itself to become, once again, a respected technology competitor.

Organizations such as IBM and GE have adapted over the years to remain competitive in the market. They have gone through different cycles of disruptive innovations, leaving some businesses, and creating new ones. Others like Kodak and Nokia are re-strategizing in order to remain relevant in a dynamic global market. The latter just signed a partnership agreement with Microsoft to develop new mobile solutions, after the new CEO acknowledged that the phone maker has been left behind by its competitors. Here, Nokia understood that its sole strengths are not enough to win.

C.K Prahalad and Gary Hamel’s HBR classic Core Competence of the Corporation made popular the notion that knowing and mastering core business factors can be leveraged across products and markets. Yet the ways companies make products, especially electronics, have been disrupted and redesigned. As Nokia’s boss noted, Nokia’s core competence is in phone designs, but the trend in China, where manufacturers buy phone chipsets from vendors and make phones at unbelievable pace and price, controlling one-third of the global phone market, introduces a new dimension of competition.

From my experience establishing a small semiconductor company in Nigeria, I see consumer electronics design becoming a commodity. Companies that are too obsessed with design competence could suffer, especially in the developing markets. Businesses such as Cisco, Dell, HP, and Motorola have seen their R&D spending dropped as a percentage of sales; yet, most get products to market faster. Why? There are other firms like MediaTek and Flextronics that do to design what China’s Shenzhen district does to manufacturing. They develop chipsets and license to manufacturers who then produce and sell. Companies like Best Buy and Wal-Mart rely on these design houses for some of their branded tech products, enabling them to sell at competitive prices, with no R&D cost. Looking outside for new insights is everywhere: P&G expects 50% of new products ideas to come from outside the company.

With crowdsourcing services, lower wages, and improving designers in most emerging nations, multinational corporations must evaluate how to retool products to make them relevant to new markets. While core competence remains vital — differentiation offers a competitive advantage — firms must examine their organizational ambidexterity. They must be ready to let go, just as Kodak is doing on traditional cameras. They must be ready to go beyond their core competence and its associated core products and markets of today, which may be irrelevant tomorrow, to evolve and prosper. And the ability to do that may become a new core competence

Originally published in HB: Beyond Core Competence