Marketing Warfare in the Zimbabwean Mobile Sector Essay

IntroductionThe concept that selling is state of war open fire be state to be largely true in respect of the Zimbabwean vigorous celestial sphere where players confine drawn lessons from open airfield concepts of planning, maneuvering and discoverwitting fellow players in rate to lodge ahead of the pack. However the grocery storeing is state of war concept does non adequately charectirise the private-enterprise(a) nature of the nimble industry as in that location are innovative(prenominal) movers to be taken into consideration such as customer call fors.The expeditious heavens was stack awayd in Zimbabwe by Strive Masiyiwa finished his Ec nonpareilt sword. A draw bulge out battle with authority construed onwards he was finally granted the authorise to blend in a unst fitted net incomework. In the mean clip, Net- whiz was granted a licence to operate and started straining Mobile ph bank noneinal work in 1996 followed by Net- superstar which was granted a licence in 1998 with Econet universe the closing to enter the securities industry after its good battle in July 1998.The nimble sector has since gr bear to in incarnate some new(prenominal) players who asseverate runny go such as Africom, Broadacom and most recently Tel one who chap the (086) energetic line range. Going by the concept that securities indus move is warfare, the increase in players thereof equates to an increase in the estimate of armies in the field of operation.This es assign shall analyse how the players in the mobile sector industry cede utilized well k directlyn battlefield strategies in shape to control the freak helping in the mobile industry. commercialise is warfare definedAl Ries and tinkers dam Trout have drawn a fit between military warfare and the warlike strategies employed by competitors in the commercialiseplace. Ries and Trout declare that there are four strategies that lavatory be employ in contend a grocery storeing war protective, law-breaking, flanking and guerilla tactic. In whatsoever industry there is a groceryplaceplace attractor, market contender, market partner and market niche. The market attraction employs the defensive dodging in install up to state its mail service as market attractor and to expand its market assign kick upstairs. It has to continuously protect its market percentage from smelly blows by its competitors.The market contest is the one which follows behind the market attractor and piece of ass employ wicked maneuver to out rightly approach path the market draw and its smaller competitors in order to increase its market luck. It digest in every case choose to accept its redact as a market competition and deal to master(prenominal)tain and defend their blank space as such.The market follower is much smaller and commands a smaller share of the market. It back end chose to use the flank ardours which is an indirect tone- beginning rather than the offensive which toilette institute to be a much overpriced and less effective method. The market follower recognizes the areas of the market not cosmos cover by the market draw and contest and focuses its attention on those areas in order to see competitive prefer.Econet as the commercialize LeaderEconet, commands about 58% of the mobile market in Zimbabwe with about 8million proofreaders whilst Telecel has a market share of about 28% with endorsers amounting to 2.5 million.Net- bingle is last with a market share of around 15% and a contributor base of 700 000.The above statistics clearly test that Econet is the market leader in the Zimbabwean mobile sector. However this has not everlastingly been the position as Net-one, the premier of all to offer mobile go in Zimbabwe was at one time the market leader. This could be attributed to the fact that Net- one was the first to number mobile run with Telecel and Econet entering the dispute t wo years after net- One had already started providing operate to the market. As such it was that normal that Net-One was the market leader at this stage.Due to the economical challenges experience by the country especially the termination forward 2008, Net-One failed to maintain its position as market leader pass oning in Econet pickings over that positionAmongst the maneuver use by Econet to gain its position as market leader, is the offensive tactic. It quickly came in to increase its market share by increase its reader base. This it did by upgrading their capableness to enable them to sign up as many new customers as possible. Econet took good of the fact that initially, mobile services were a scarce commodity and a economize of the elite, to outwit its competitors by increasing its lector base and flooding the market with its mobile lines way sooner its competitors followed grounds.Another factor which origin leader have contributed to the rise of Econet to the p osition of market leader is the fact that, for it to piss its licence to operate, Econet went with a protracted battle with the authorities fifty-fifty though they had come up with the idea to introduce mobile services in Zimbabwe. This protracted battle endeared the public to Econet as it was a general perception that Econet was being victmised. consequently when it launched its own mobile services it had already won the loyalty of customers way onward it started offering the service.Mobile defensive measure.When it gained the position of market leader Econet then adopted the defensive system in order to maintain its position as such. It did this by a continued increase in its subscriber base whilst at the same time introducing new harvest-times so as to sweetener more customers. By continuously increasing its capacity in terms of the subscriber base, Econet ensured that it shut out its competitors, who due to a lack of resources were not able to contradict Econets co ntinued rapid growth.by so doing Econet utilize the mobile defence strategy which entails more than just a leader maintaining a fotress position whilst assuming that its competitors leave behind never catch up.In the mobile defence strategy however, the market leader, concentrates upon market broadening and diversification. (Gilligan) Econet to a fault went about the duty of expanding its earnings coverage area. It did this hot in pursuit of Net-One which had gone on a intercommunicate expansion drive, particularly in the plain areas an area which Econet had not plane penetrated. Econet went on a counter- offensive polish up and expanded its net faster and wider than its competitors consequently maintaining its position of market leader.This method was employ by Cadillac when faced with stiff contention from Mercedes. It went on to produce a newer and bust model than that which had been released by Mercedes. This is the method which was utilise by Econet, because even though Net-Ones now covered the rural areas which previously had no get at to mobile services, Econets network coverage was now larger and even wider than any of its competitors.Since attaining its market leader position, Econet has worked on developing new overlaps and services to maintain its present customers and to lure more customers. For instance, Econet introduced the Ecolife service to picture lie confidence services to its customers. This was a means of Econet diversifying from its main services and withal worked to ensure that customers from other networks could migrate to Econet as their networks were not providing a similar service. On the other hand, Econet might have offered this carrefour before doing their preparedness as regards their capacity to offer the mathematical product as they had to withdraw it pursuance disputes with their partner.In order to maintain its market share whilst at the same time fashioning meaningful inroads into hitherto unconquer ed territory, Econet was too the first one to introduce 3G services which enabled its customers to carry and fetch multimedia messages. The trigger of this service was long overdue as most of its customers already owned phones which could mountain this task. The fact that it did so before any of its competitors did gave Econet a competitive reward.In further diversifying, Econet ventured into internet services by its character Ecoweb. It further developed this concept by ensuring that it was the first to offer internet services on its mobile platform thus enabling users to access internet services on their mobile phones.Counter-offensive defensiveWhen Net-One and Telecel introduced mobile banking through One wallet and Isikhwama respectively, Econet launched a counter- offensive defence by presentation its own Ecocash. A counter-offensive attack is one in which the market leader responds to an attack by the market challenger. As they say that a bigger army has got an amph etamine hand and is more likely to master the smaller armies, Econet could afford to embark on broad advertisement and roll out of their new product so as to outdo its competitors. Econet used all its resources and went into overwork marketing Ecocash. This had the impact of overshadowing Telecel and Net-Ones own mobile banking services to the point that it is now as good as if they do not exist.Econet used the counter offensive defence in order to ensure that its competitors new products had a still birth. use its enormous resources as the market leader, Econet went on to roll out its platform by recruiting agents all over the country, rural and urban areas alike which similarly serve as a marketing tool for them. By allowing its competitors to introduce their new products before orgasm in from behind after realizing that the product was viable, Econet in like manner used a marketing strategy known as shaping avocation(Mercer1996).Econet took prefer of the gap in its com petitors who, although they had a good idea, did not have as much resources as the market leader to roll out the programme as effectively as Econet did. In this particular instance it usher out be said that Econet went ahead to counter attack its competitors as it did not spare any resources in ensuring that the product gained attention. Furthermore it has set to flex its muscles by preventing Telecel and its partner Cabs, access to its customers through their Textacash product.Position defenceThe position defence is a strategy used by a market leader to erect barrier around its ships company and ensure that its brand position is invincible. This end be through with(p) through massive advertisements and promotions to ingrain its position as the market leader. Econet has invested a lot of silver in entrenching in the mind of the customer that theirs is the crush brand to such an extent that even their competitors might also believe that this is a fact.Its vast profit margins en sure that it has the specie to dominate the advertising sector and to advertise its brand as the leading brand. The enliven to change your world catch style is used to imprint in the consumers mind that only their company can bring positive change to the consumers life and that the purpose of its very instauration is to provide the beat out service to its customers through continued innovation.All throughout the country, Econet has put up billboards asserting its position as the market leader. This has the effect of making their straw man felt not only by its competitors but society at large. The net effect of this is that its competitors will end up believing in Econets self-assertion that its position as market leader is unassailable thus preventing/ reducing attacks from competitors.Econet has also endeared itself to its customers through various loving incorporated responsibility activities such as Capernaum trust, Joshua Nkomo cognition fund and the National Health T rust. These activities conjure up Econets competitive vantage as people begin to perceive it as a caring placement which is not just after their money.Telecel as the commercialise ChallengerFrom the above statistics, it is can be deduced that Telecel is the market challenger. As a market challenger, Michael Porter suggests that a market challenger has three ways in which to delete the market leaders favouri) By creating a competitive advantage in cost or differentiation.ii) By neutralizing the leaders strong points.iii) By setting up a defence against counter- attack by the market leader.Telecel has been able to employ one or more of these tactics as the market challenger through various promotions and incentives to knock over it a competitive edge against the market leader. A market challenger also has to subside whom to challenge between the market leader and the market follower.Frontal attackThe facade attack is a military tactic in which the enemy is attacked head on. As a marketing tool, it involves the market challenger matching the market leader product for product and price for price (C. Gilligan 2010, pg 487). Telecel has unploughed itself on Econets heels by trying to keep abreast of all new products offered by Econet. Even though Econet was the first one to launch 3G services and mobile internet services, Telecel also quickly followed suit offering the same service to its customers and at similar cost.By so doing, it make sure that it did not lose a substantial number of customers to Econet seeking a better service. However a frontage attack is not always the best method as it very high-ticket(prenominal) and risky considering that the market challenger is traffic with a well resourced competitor.Not to be outdone by Econet, Telecel has also launched its own social corporate responsibility initiative through supporting old peoples homes which also can be seen as a frontal attack on its competitor.Flank attacksTelecel has taken advantage of those areas in which the market leader is weak in order to assert itself as a superior brand. This strategy is called the frontal attack and is less risky and less pricy than the frontal attack. Telecel has identified those products that Econet does not provide and its weaknesses to fill the void left by Econet. A good example is the pre activate lines which are being offered by Telecel. Econet does not offer the same service, the result being that it takes seven-day for a customers new line to be initiate than for a Telecel customer. This gives Telecel a competitive advantage over Econet.Telecel also provides airtime on source up to a certain limit, other service which Econet does not provide. Through this product, Telecel customers can use airtime then pay for it after upon topping up their pre-paid lines. Upon purchasing a new mobile line, it is mandatory that one registers their details with their service provider before accessing service.Telecel has provided for this s ervice to be provided via the phone without the need for filling in of forms. On the other hand Econet does not have a similar adeptness and one genuinely has to visit their offices to fill the forms with a grand hold period.Telecel was also the first one to provide call me back facility. This facility enables a customer without credit to send a message for another subscriber to call them back. Econet then launched a counter- offensive defense by immediately following suit. Nonetheless, Telecel still has the upper hand in terms of customer satisfaction as their subscribers are allowed to send call me backs crosswise all networks. Econet on the other hand, only allows call me backs on its own network. This could give Telecel an advantage resulting in customer migration from Econet to Telecel, for those who have a bun in the oven the service to be across the board.Telecel has systematically looked at ways to outwit their market leader by taking advantage of those service gaps le ft by Econet. Telecel took advantage of the social media platforms by being the first to encourage the market to like them on Facebook before Econet did. Econet has since taken a counter- offensive response by also sign up on the social network platform.Telecel also took the lead on teletunes a service whereby a caller can listen to a tune whilst waiting for their call to be connected. It also initiated a quiz facility where its customers would stand a chance to win prizes if they answered the questions correctly. All this enhance Telecels brand as it would invariably seek to provide a differentiate service from that of its competitors.Telecel offered mobile banking services before Econet did. Econet immediately launched a massive counter-offensive as outlined above. This shows that it is a risky business to attack the market leader, as it has more than enough resources to counter the offensive and even surpasses the market challenger.Guerilla tacticsThese tactics entails hit and run moves which are knowing to keep the competitor off balance. This can be in the form of flitting price reductions as Telecel did with the submission of mega juice airtime where their customers would get massive discounts within the network after topping up their airtime. This also worked to increase product as customers would get more airtime knowing that they will receive bonuses. Telecel also reduced the price of their sim card starter packs as compared to those of their competitors. It can truly be argued that these two tactics whole helped Telecel to overtake its competitors from behind thus bonny the second largest mobile network in Zimbabwe.Guerilla warfare can also be by way of product comparisons. When Econet changed its platform from 091 to 0772 whilst Telecel was changing its own from 023 to 072, Telecel took advantage of this conversion to put its product in comparison with Econet. Previously Econet was associated with the elite, whilst on the other hand Tel ecel was associated with the less affluent.However with the changeover of the identifying numbers the difference was no longer notable. Telecel released advertisements encouraging people to .move over to Telecel since they were changing numbers anyway. On its website in an apparent dig on the market leader Telecel says We might not be the biggest but we are the best Telecel also underwent rebranding and increased advertisements and visibility. It also gives a control that you do not have to be the biggest in order to be the best.Net-one as the market follower.Net-one having is the market follower in terms of the above statistics. It has the option of employing the following tacticsi) Product imitation or the me-too strategyii) Guerilla tactics through price reductioniii) Use their research and Development effectivelyNet- One go from being the market leader to being the market follower due. This could be attributed to the economic meltdown between 2002 and 2009 and also the found ing of United States Dollar. Net- One lost a lot of revenue as it had established a niche market among the corporate and parastatals that preferred its contract line service. The introduction of the United States Dollar meant that all money owed under the Zimbabwe Dollar era was lost.Net-One has embarked on a number of warfare tactics in order to regain its market leader position. Initially, Net-one sought to regain its position as market leader through an aggressive network expansion drive. Net-One used the flanking attack by ensuring that they expanded to the rural areas whereas all its counterparts were concentrating on the urban areas. then Net-One took advantage of the gaps left by its competitors to gain competitive advantage. Econet however countered by expanding its network even wider than Net-One. Nevertheless, Net-One is still perceived to be the network that is easily accessible in the rural areas.Net-one has used the me-too strategy by also introducing airtime promotions and bonuses for topping up airtime. This it has done in imitation of the promotions done by Telecel under the mega-juice promotion. It is reported that these promotions have resulted in it growing its subscriber by calciferol 000 subscribers.Net-One has also engaged in frontal attack in dealing with its competitors. In 2006 when Econet offered to jockstrap the national Premier soccer League (P.S.L), Net-One countered by offering to sponsor a team in the P.S.L. This would result in promotion conflict as Econet wanted players uniforms to all bear its brand whereas the Net-One sponsored team would also be call for to wear the Net-One logo. In the end Econet pulled out of the sponsorship deal.Shortfalls of warfare marketing strategy.It has been argued that the warfare strategys shortfall is that it concentrates mainly on competitors moves whilst forgetting the customer. It has been proposed that there needs to be a strong focus upon the customer and that the organization must be cus tomer-led.The marketing is warfare concept leads to too much encroachment and sometimes a company can lose sight of its own objectives and or its own customers needs. This can have a negative impact on its performance as the company engages in needless aggression. On the other hand, one cannot be purely customer oriented as customers very often do not realize what they want and relying on customer opinions can be misguiding.Conclusion selling has been likened to a football match where one cannot just concentrate on the jeopardize without looking at his opponents because they will not win the game. From the above it can be said that indeed if the players in the mobile sector were to totally ignore their competitors they would not gain competitive advantage. However the mobile sector should also concentrate on their customers if they are to give their customers value. Overall it should be pointed out that the competition strategies highlighted above result in value addition for cus tomers as players try to outdo each other.References http//www.brandingstrategyinsider.com http//www.econet.co.zw http//www.netone.co.zw http//www.telecel.co.zw http//www.techzim.co.zw Gilligan C. et al 2009 Strategic marketing Planning , second Edition Butterworth-Heinmann United Kingdom. Hooley G. et al 2012 Marketing Strategy & Competitive place 5th Edition Prentice sign of the zodiac International, United Kingdom. Kotler P. et al Mercer D. 1998 Marketing second Edition Blackwell Publishers United Kingdom.