Cell phone company in South Africa - Essay Example

Cell Phone Company in South Africa Cell Phone Company in South Africa For a business venture to thrive and survive, it needs to be initiated and implemented in a lucrative environment. Both national and local factors need to be supportive of the environment to enable it explore new market niches and ultimately attain its growth and development goals. A review of the business environment in South Africa ascertains that it can support cellular phone business venture. With respect to its political wellbeing, the country practices democracy and is politically stable (Mwikikagile, 2008).

Legally, the country has developed, implemented and enforced relevant laws that govern business relations. The criminal justice system exercises a high degree of transparency and professionalism and, undoubtedly, its credibility is assured. According to Worden (2000), South Africa’s economy is one of the most developed in Africa and is ranked the fifteenth across the globe. It is supportive of growth oriented international economic instruments and institutions. South Africa’s culture is majorly of African orient and greatly influences the values and virtues that are upheld by the population.

Regardless of this, local populations are receptive to new ideas and have recently embraced a cellular mobile culture (Thompson, 2001). As indicated earlier, the country offers a ready and supportive environment for cellular phone businesses. This business would face competition from other service providers that have already explored the market. These include those selling prepaid international cards, Vodacom and Virgin Mobile that might decide to offer better deals in a bid to maintain a competitive advantage.

Nonetheless, the market is still young and advanced technology would probably give an upper hand especially considering that population is gradually embracing new advanced technology (Mwikikagile, 2008; Deegan, 2000). With respect to the strengths of the company, it is worth noting that our company is new in the region and has better designed plans. In addition, there are not so many cell phone companies in South Africa and we offer great customer services. Our main weaknesses are that we are new and it is likely to take a longer period before we establish our operations.

In addition, we lack towers that are elemental for the use of cell phones as well as sufficient capital to boost operations. There are certain opportunities that we can explore to our advantage. These range from competition with existing companies and flexing prices for national as well as local calls to establishing contracts with the government and expanding operations across the region. The threats include possible loss of contracts, presence of competitive companies, poor communication and possible downsizing of personnel and employment.

The main objectives of this business is to enhance the growth of the company, establish operations and become the leading distributor of vital cell phones as well as wireless communication services and increase the total number of the company’s retail outlets. With respect to the strategic thrust, the company will employ licensing to not only enter but also run operations in the market. Measurements of growth will be done through comparative studies and analyses with the current service providers in the region (Beinart, 2001).

In sum, South Africa offers a lucrative environment for business operations. An evaluation of its relative environment indicates that it is supportive of growth and development. As it has come out from the study that the current service providers would probably be the company’s main competitors. Nonetheless, the company will aim at maximizing its potential by placing great emphasis on its strengths. References Beinart, W. (2001). Twentieth-Century South Africa. Oxford: University Press. Deegan, H. (2000). The politics of new South Africa.

Chicago: University Press. Mwakikagile, G. (2008). South Africa in contemporary times. South Africa: New Africa Press. Thompson, L. (2001). A history of South Africa. Yale: University press. Worden, N. (2000). Making of modern South Africa: Conquest, segregation and apartheid. Oxford: University Press.