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Outsourcing Business Model For Africa – The Time To Take Off Is Now

By
Tekedia Editors
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0

 

Over the last few years, Africa has proven its capacity to reinvent itself through better governance and economics structures. It has a very young population with a dynamic business environment. The local businesses have become more innovative and corporate governance has improved. It is increasingly developing capability in critical areas of technology with some African engineers providing innovative solutions to global challenges.

 

Yet, Africa does not have any considerable share of the global outsourcing market. Europe and North America are not looking at Africa despite our comparative low wage and democratic institutions when compared to Asia. Accordingly, we think there is a need to develop this business and position the redesign that is taking place in the continent to the world.

 

We want the world to engage talented Africans in critical areas of technology and business in general. What can the continent do? These are areas for actions:

 

  • A business model to help bring outsourcing to Africa. It may not be very hi-tech today, but we are ready for ethical clinical trials, packaging, data entry, CRM support, local consulting, etc.
  • Develop an execution strategy that is fluidic and adaptive to Africa and its conditions.
  • Link our firms to reputable global network that will us position African firms to growing international opportunities. We need contacts to China, US, Europe, Latin America and indeed all parts of the world. Where is the network that supports outsourcing and joins ventures? We need that entrance.
  • A world-class website, communication and brand plan to help change the perception and move businesses to look for opportunities in Africa.
  • Get international institutions connect to African schools for research and grant making in a more direct and less bureaucratic way.
  • “Today, we need people who understand Asia, European and American businesses. We need website designers and builders. Networked business icons. Consultants that are experts in creating things from zero. Together we will establish a one stop platform where outsourcing will reach Africa.”

 

So you got an idea in any of these areas, email Tekedia. Maybe the more we talk about it, the more the nations take action. There are many great things in the continent that can appeal to the world if we make them right.

Social Media Ad Spending – Which African Company Could Share The Billions

By
Tekedia Editors
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0

eMarketer has estimated the distribution of social media ad spending dollars for 2011 and 2012. Of course, this study was done before the era of Google+. This is the breakdown:

 

Facebook  $4.05 billion (2011), $5.74 b (2012)

Myspace $0.19b (2011), $0.16 b(2012)

Twitter $0.15b(2011), $0.25b(2012)

 

Now, the question: is there any African company that can participate in this league? We mean any prospect of any African originated company competing in this level, at least in the next five years. There is a lot of money to be made. The barrier of entry is high because of network effect (people will not easily leave from a network where there are many folks) but the technology aspect is not. If you start, the chance is there.

 

To our readers, send us link if you know any African firm that is destined to play at this level in coming years. We want to know.

 

This company comes in mind when you think of small firms that can migrate Nigerian businesses to the ad networks, if it executes and gets funding.

 

Adloopz is an integrated social advertising service that allows people to connect with others who have services or products of benefit to them. Adloopz helps people to spread the news of their products/services via adverts they create on Adloopz which gets shared across several social networks. Yes, Adloopz allows you to post adverts, share them with your friends and followers, and also lets others do the same.  And at the end, they provide some really nice statistics that let you know how your adverts are doing.

 

Another good one is Bloovue

 

Bloovue:  Bloovue helps advertisers connect with their audiences by providing simple and affordable online advertising on the largest online publishers in Nigeria.

 

 

Google+ Should Go For Spotify Before It Moves Into Facebook

By
Tekedia Editors
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Spotify came to the US on July 14, 2011 and basically arrived at the biggest market it can ever be. Now, it has to scale and move quickly as most of the people that used to hide and use it are free and untangled by any legal fear.

 

Spotify is a Swedish DRM-based music streaming service offering streaming of selected music from a range of major and independent record labels, including Sony, EMI, Warner Music Group, and Universal.[3][4] Launched in October 2008 by Swedish startup “Spotify AB”, the service had approximately ten million users as of 15 September 2010;about 1,000,000 of whom were paying members.The service is, as of July 2011, only available in Finland, France, the Netherlands, Norway, Spain, Sweden, United Kingdom and the United States. (wikipedia)

 

Spotify created by a young Swedish geek has got good press since its debut, in US. Now it the time for that strategic partnership to happen. Sources have confirmed that Facebook is already moving to have a deal to have the Spotify music sharing in Facebook. If that happens, that will extend any chance of Google+ catching up. It is not going to happen anytime soon if Spotify eludes Google+.

 

Tekedia understands that Spotify owners and investors will like a huge platform like Facebook as the network effects favor them. So it will be a tough salesmanship for Google to have this platform. The best they can do is to offer to buy this company. But anti-trust issues can stop that as Google has its hands full now.

 

But if Google stays there and Facebook takes over the platform with Zynga, it will find it very difficult to have people using Google+. It must figure out how to compete and get into this newest US arrival to have a chance of making it.

 

Google+ needs Spotify. These are key stats about Spotify which Tekedia has compiled:

 

Users: 10 million free;  1.5m paid

# of songs: 15m

Price: $5 per month; mobile is $10/month

Deals: all the four major music contents owners.

 

Being A Market Leader – What Netflix New Prices Must Teach Entrepreneurs

By
Tekedia Editors
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0

It is a no news that Neflix is raising prices. The US company is raising prices by 60% for customers that watch films and TV shows both online and via mail order system  DVD . Before now, with $9.99 a customer could get the DVD and enjoy unlimited online streaming. But no more. Netflix has a new plan.

 

They have unbundled the two services and customers will pay $7.99 for each. The goal here is to raise revenue to re-sign some of their expiring deals, expand the business abroad, acquire new content, and of course work on the all important contracts of dealing with the  content owners like Sony, Disney, etc.

 

While everyone should look at this as purely a way to generate more revenue, Tekedia sees one huge lesson this must teach companies and entrepreneurs. If you lead your sector or industry, you can raise prices and still not lose many customers. The top companies in their industries have price power. But if you are not at the top, a small change in your price could cause an exodus on your user base.

 

The reason is simple: most non-top players in any industry enter the market via low price option. The established planners have brand reputation and you need to offer a compelling product with sometimes good price to get the customers out of their loyalties. Yet, that is not alone. If the player is truly a leader, you have no chance. But you can try, of course.

 

Think of Apple in its industry. It is not going to be easy to take away Apple customers by offering a cheaper version of iTunes. No way. Apple could raise price by few cents, people will still buy the products.  Why? They lead the market.

 

So for entrepreneurs, your key job is to find ways to lead your market. If you cannot lead your market, you will have difficulty to have price control over your products.

 

 

 

The African Cisco Partners – How The 10,000 Job Cuts Could Affect Them

By
Tekedia Editors
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0

The plan by Cisco to  cut 10,000 jobs will hurt it more and could push it further to the path of inability to revive growth. First, by losing about 14% of its manpower, Cisco could be out-innovated by its peers in the market.  One thing Cisco needs is to jumpstart innovation and bring more products to the market. Unfortunately, it has chosen the other way  and went for job cuts. Recall that this company cut 550 jobs in May when it shutdown Flip video camera unit.

 

About 7,000 people will go by the end of August. Already as we noted before that 3,000 people have accepted buyouts.

 

You lose 10,000 folks, where are you going to make up the coverage in R&D and sales. The challenge is not just boosting earnings in the next quarterly earnings, but sustaining its over the next few cycles. The reduction of manpower will surely help, but that may not change the tide.

 

The once innovative Cisco has been badly out-competed. Huawei has taken all the major contracts in Africa and Cisco has none. In enterprise business in the developed world, Juniper and HP have broken Cisco apart. Cisco could not find favor in the customer market with the camera Flip which it bought in excess of $500m and cloded. This company is in a pitiable state.

 

The key problem is Juniper Networks and HP. They have eaten into Cisco core switches and router business. Even Huawei is also causing havoc with its low prices.

 

For Tekedia, this is what we think will happen: Cisco could trim its number of African dealers or partners. We think the companies that depend on Cisco for bulk of their revenue must be vigilant. They must adapt and be ready to enter into new areas. They must see this job cuts as a deep sign that not all is well in Cisco and it is time they make have a Plan B.

 

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