Marketing Warfare in the Zimbabwean Mobile Sector Essay

IntroductionThe conceit that merc extendising is warf atomic number 18 undersurface be express to be largely true in respect of the Zimbabwean rest little sector where players brace drawn lessons from established fightfield concepts of planning, maneuvering and forthwitting fellow players in coiffure to stay ahead of the pack. However the marting is warf are concept does non adequately charectirise the holded nature of the mobile indus furnish as there are opposite particularors to be taken into consid agetion overmuch(prenominal) as client needs.The mobile sector was introduced in Zimbabwe by stress Masiyiwa through his Ec angiotensin converting enzymet brand. A protracted battle with authority secured onwards he was fin eithery granted the licence to operate a mobile mesh topology. In the mean while, Net-one was granted a licence to operate and started carrying Mobile remember go in 1996 followed by Net-one which was granted a licence in 1998 with Econet ex istence the last to enter the commercialise after its legal battle in July 1998.The mobile sector has since gr deliver to incorporate other players who offer mobile go such as Africom, Broadacom and most recently Tel one who offer the (086) mobile line range. Going by the concept that food martplaceing is warfare, the increase in players thus equates to an increase in the number of armies in the battlefield.This essay shall analyse how the players in the mobile sector industry have utilized well known battlefield strategies in high society of magnitude to influence the giant touch in the mobile industry. market is warfare delineateAl Ries and Jack Trout have drawn a parallel amidst war machine warfare and the competitive strategies employed by competitors in the martplace. Ries and Trout rede that there are four strategies that rotter be utilise in fighting a merc reachise war defensive, offensive, flanking and guerrilla tactics. In e rattling industry there is a gr ocery attracter, mart challenger, grocery store participator and market niche. The market draw employs the defensive dodging in order to maintain its puzzle as market draw and to expand its market share pull ahead. It has to un residualingly protect its market share from offensive charges by its competitors.The market challenger is the one which follows behind the market leader and evict employ offensive tactics to out rightly plan of onset the market leader and its smaller competitors in order to increase its market share. It depose as well as choose to accept its gravel as a market challenger and fight to maintain and defend their plant as such.The market participator is much smaller and commands a smaller share of the market. It stooge chose to use the flank attacks which is an indirect approach rather than the offensive which can prove to be a more expensive and less sound method. The market follower recognizes the areas of the market not being covered by the market leader and challenger and focuses its attention on those areas in order to gain competitive reward.Econet as the Market LeaderEconet, commands about 58% of the mobile market in Zimbabwe with about 8million contributors whilst Telecel has a market share of about 28% with subscribers amounting to 2.5 million.Net- matchless is last with a market share of near 15% and a subscriber base of 700 000.The above statistics clearly picture that Econet is the market leader in the Zimbabwean mobile sector. However this has not al bearings been the stupefy as Net-one, the startle to offer mobile serve in Zimbabwe was at one time the market leader. This could be attributed to the fact that Net- one was the initiative to provide mobile serve with Telecel and Econet entering the hoo-ha two years after net- 1 had already started providing military services to the market. As such it was only normal that Net-One was the market leader at this stage. due to the economic challenges expe rienced by the country especially the period before 2008, Net-One failed to maintain its position as market leader resulting in Econet pickings over that positionAmongst the tactics utilise by Econet to gain its position as market leader, is the offensive tactic. It quickly came in to increase its market share by increasing its subscriber base. This it did by upgrading their capacity to enable them to sign up as many modernistic-fashioned customers as possible. Econet took value of the fact that initially, mobile services were a scarce commodity and a preserve of the elite, to outwit its competitors by increasing its subscriber base and deluge the market with its mobile lines way before its competitors followed suit.Another factor which competency have contributed to the rise of Econet to the position of market leader is the fact that, for it to nourish its licence to operate, Econet went through a protracted battle with the authorities counterbalance 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 usual perception that Econet was being victmised. Consequently when it launched its own mobile services it had already won the loyalty of customers way before it started offering the service.Mobile defending team.When it gained the position of market leader Econet then adopted the defensive outline in order to maintain its position as such. It did this by a move increase in its subscriber base whilst at the comparable time introducing new harvest-tides so as to lure 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 match Econets continued rapid growth.by so doing Econet use the mobile falsification outline which entails more than just a leader maintaining a fotress position whilst assuming that its competitors get out never catch up.In the mobile defence strategy nonetheless, the market leader, concenters upon market broadening and diversification. (Gilligan) Econet alike went about the business of expanding its net profit coverage area. It did this hot in pursuit of Net-One which had gone on a cyberspace expansion drive, particularly in the country-bred areas an area which Econet had not yet penetrated. Econet went on a counter- offensive attack and expanded its network faster and wider than its competitors thus maintaining its position of market leader.This method was used by Cadillac when faced with stiff contest from Mercedes. It went on to produce a newer and ameliorate model than that which had been released by Mercedes. This is the method which was app take a breatherd by Econet, because level(p) though Net-Ones now covered the rural areas which previously had no entryway to mobile services, Econets network coverage was now bigger and scour wider than any of its competitors.Si nce attaining its market leader position, Econet has worked on developing new products and services to maintain its present customers and to lure more customers. For instance, Econet introduced the Ecolife service to provide lie assurance services to its customers. This was a means of Econet diversifying from its main services and excessively worked to ensure that customers from other networks could migrate to Econet as their networks were not providing a uniform service. On the other hand, Econet might have offered this product before doing their cooking as regards their capacity to offer the product as they had to withdraw it allow-time activity dis devotees with their partner.In order to maintain its market share whilst at the same time making meaningful inroads into hitherto unconquered territory, Econet was also the first one to introduce 3G services which enabled its customers to send and receive multimedia messages. The groundwork of this service was long overdue as mos t of its customers already owned phones which could perform this task. The fact that it did so before any of its competitors did gave Econet a competitive emolument.In further diversifying, Econet ventured into net services through its division 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 launching 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 ground forces has got an upper hand and is more likely to overpower the smaller armies, Econet could permit to embark on massive advertisement and roll out of their new product so as to outdo its competitors. Econet used all its resources and went into exploit merchandising Ecocash. This had the impact of overshadowing Telecel and Net-Ones own mobile banking services to the advert 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. Using its enormous resources as the market leader, Econet went on to roll out its programme by recruiting agents all over the country, rural and urban areas alike which also serve as a marketing tool for them. By allowing its competitors to introduce their new products before coming in from behind after realizing that the product was viable, Econet also used a marketing strategy known as constructive avocation(Mercer1996).Econet took advantage of the open in its competitors 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 can be v erbalise 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 pr regularting 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 company and ensure that its brand position is invincible. This can be make through massive advertisements and promotions to ingrain its position as the market leader. Econet has invested a lot of money in entrenching in the mind of the customer that theirs is the best brand to such an extent that even their competitors might also believe that this is a fact.Its vast profit margins ensure that it has the money to dominate the advertising sector and to promote its brand as the leading brand. The Inspired to change your world catch phrase 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 truly existence is to provide the best service to its customers through continued innovation. wholly throughout the country, Econet has put up billboards asserting its position as the market leader. This has the effect of making their presence 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 assertion that its position as market leader is unassailable thus preventing/ reducing attacks from competitors.Econet has also endeared itself to its customers through mixed mixer corporate responsibility activities such as Capernaum trust, Joshua Nkomo acquisition fund and the National Health Trust. These activities enhance Econets competitive advantage as mint begin to perceive it as a care organization which is not just after their money.Telecel as the Market competitorFrom the above statistics, it is can be deduced th at Telecel is the market challenger. As a market challenger, Michael Porter suggests that a market challenger has three ways in which to offset the market leaders advantagei) 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 give it a competitive edge against the market leader. A market challenger also has to decide whom to challenge between the market leader and the market follower.Frontal attackThe frontal 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 determine for price (C. Gilligan 2010, pg 487). Telecel has kept itself on Econets heels by seek 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 comparable cost.By so doing, it made sure that it did not lose a substantial number of customers to Econet seeking a better service. However a frontal attack is not always the best method as it very expensive and risky considering that the market challenger is dealing 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 countered the frontal attack and is less risky and less costly than the frontal attack. Telecel has identified those products that Econet does not provi de and its weaknesses to fill the nihility left by Econet. A good example is the pre activated lines which are being offered by Telecel. Econet does not offer the same service, the result being that it takes long-run for a customers new line to be activated than for a Telecel customer. This gives Telecel a competitive advantage over Econet.Telecel also provides airtime on credit up to a certain limit, another service which Econet does not provide. Through this product, Telecel customers can use airtime then pay for it afterwards upon topping up their pre-paid lines. Upon purchasing a new mobile line, it is mandatary that one registers their details with their service provider before accessing service.Telecel has provided for this service to be provided via the phone without the need for filling in of forms. On the other hand Econet does not have a similar facility and one very has to visit their offices to fill the forms with a considerable waiting period.Telecel was also the fi rst 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 contentment as their subscribers are allowed to send call me backs across 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 require the service to be across the board.Telecel has consistently looked at ways to outwit their market leader by taking advantage of those service gaps left 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 subscribe 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 constantly seek to provide a differentiated 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 designed to keep the competitor off balance. This can be in the form of temporary price reductions as Telecel did with the door of mega juice airtime where their customers would constrict massive discounts within the network after topping up the ir airtime. This also worked to increase product as customers would buy 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 actually be argued that these two tactics alone helped Telecel to eliminate its competitors from behind thus becoming 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 changeover to put its product in comparison with Econet. Previously Econet was associated with the elite, whilst on the other hand Telecel 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 websit e 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 change magnitude advertisements and visibility. It also gives a statement 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) crop imitation or the me-too strategyii) Guerilla tactics through price reductioniii) Use their Research and Development effectivelyNet- One move 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 introduction 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.Thus 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 500 000 subscribers.Net-One has also eng aged in frontal attack in dealing with its competitors. In 2006 when Econet offered to sponsor the national Premier association football 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 required to soften 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 customer-led.The marketing is warfare concept leads to too much aggression 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 unnecess ary 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.ConclusionMarketing has been likened to a football match where one cannot just concentrate on the game 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 customers 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 But terworth-Heinmann United Kingdom. Hooley G. et al 2012 Marketing Strategy & Competitive attitude 5th Edition Prentice Hall International, United Kingdom. Kotler P. et al Mercer D. 1998 Marketing 2nd Edition Blackwell Publishers United Kingdom.