THE COPPERBELT UNIVERSITY

SCHOOL OF BUSINESS

NAME : ……………..

SIN : ………

PROGRAM : BBA

COURSE : BS 450 STRATEGIC MANAGEMENT

LECTURER : DR BRUCE MWIYA/MR. JUSTICE BWALYA

DUE DATE : ……………..

ASSIGNMENT : A STRATEGIC MANAGEMENT PAPER ON ZAMTEL

CHALLENGES AND OPPORTUNITIES
Contents
1.0. Background ................................................................................................................ 2
2.0. The Nature Of Strategic Management ........................................................................ 4
3.0. Strategic Business Units (SBU) for ZAMTEL .............................................................. 5
3.1. Fixed Landline Telephone ....................................................................................... 6
3.2. Mobile Communication ........................................................................................... 7
4.0. Assessing Key Issues In Zamtels’ Environment Affecting Strategy Using PESTEL ….8
4.1. Political Factors ....................................................... Error! Bookmark not defined.
4.2. Economic Factors .................................................... Error! Bookmark not defined.
4.3. Social Factors .......................................................... Error! Bookmark not defined.
4.4. Technological Factors .............................................. Error! Bookmark not defined.
4.5. Legal factors ............................................................ Error! Bookmark not defined.
4.6. Opportunities ........................................................... Error! Bookmark not defined.
4.7. Threats .................................................................... Error! Bookmark not defined.
5.0. Capabilities developed over the years ......................... Error! Bookmark not defined.
5.1. The Strengths and Weaknesses .............................. Error! Bookmark not defined.
6.0. Competition in Telecommunication Markets ................ Error! Bookmark not defined.
6.1. Main Products Found In Mobile Telecommunication Industry .Error! Bookmark not
defined.
6.1.1. GSM (Global System for Mobile communication) Network ...Error! Bookmark not
defined.
6.1.2. Internet Services .................................................. Error! Bookmark not defined.
6.1.3. Mobile Phones and Other Electronic Gadgets ...... Error! Bookmark not defined.
7.0. Market Share and Dominance ..................................... Error! Bookmark not defined.
7.1. Price competition ..................................................... Error! Bookmark not defined.
7.2. Non-Price Competition ......................................... Error! Bookmark not defined.
7.2.1. Point Accumulation Plans ................................. Error! Bookmark not defined.
7.2.3. Increasing network coverage ............................ Error! Bookmark not defined.
7.2.4. Corporation social responsibility ....................... Error! Bookmark not defined.
7.2.5. Threshold Capabilities ...................................... Error! Bookmark not defined.
8.0. How Zamtel fairs with its Competitors in Terms of Each of the Generic strategies.
Error! Bookmark not defined.
8.1. Cost Leadership ....................................................... Error! Bookmark not defined.
8.2. Differentiation Strategy ............................................ Error! Bookmark not defined.
8.3. Focus Strategy......................................................... Error! Bookmark not defined.
8.4. Strategic Choice For Zamtel .................................... Error! Bookmark not defined.
10. References...................................................................................................................... 3

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1.0. Introduction and Background

The Zambia telecommunications (zamtel) is a state owned enterprise in the

telecommunications industry. Telecommunication in the command economy
was a monopoly controlled by Post and Telecommunication Cooperation
(PTC), which later changed to ZAMTEL. In July 1994 the government of
Zambia passed a Telecommunications Act that led to the splitting up of the
Post and Telecommunications Corporation into two separate companies: the
Zambia Postal Services Corporation (Zampost), and the Zambia
Telecommunications Company (Zamtel). The Company falls under the
jurisdiction of the Ministry of Transport, Works, Supply and Communications
of Zambia. It is regulated by Zambia Information and Communications
Technology Authority (ZICTA).The Zambian Telecommunications sector has
been subjected to competition since 1997 when the first privately owned
mobile cellular enterprise entered the market. This was Telecel Zambia taken
over in 2006 by MTN (Musonda, 2010).

The process of change in economic reforms commenced in 1991. While

liberalisation was embraced, influential government officials prevailed over the
state to retain 100% ownership of the state owned Zambia
Telecommunications after the beginning of privatisation process. Zamtel was
hardly a cash-cow, it's survival was based on a small number of fixed
landlines. The greatest customer for zamtel was government which was also
its largest debtor. Zamtel was a monopoly in the command economy. It has
been subjected towards stiff competition by increasing vigorous competitors in
an environment of rapid change. Poor performance due to the short recession
was understandable but any long term effects could only be explained by poor
strategic plan implementation (Zafar et al., 2013).

This paper explores the strategic challenges and opportunities confronting

Zamtel Limited, the state-owned Telecommunications Company in Zambia.
The paper is structured as follows: section 2.0 considers the nature of
strategy; section 3.0 highlights strategic business units in Zamtel; section 4.0
assesses key developments in the environment; section 5.0 considers the

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 firm’s capabilities; sections 6.0 and 7.0 delve into competition and market
share issues; section 8.0 compares Zamtel to its competitors in terms of
strategy before concluding in section 9.0.

10. References
Adamu P. (2017). Article on Fourth Mobile Operator Coming to Zambia,
www.ZambiaReports.com, Accessed 20 April 2017

Bruin L., Marques M,. Kanani P., and Roekel M. (2016). From Firm Resources to
Competitive Advantage, Business to You Journal, 54 (1), 296-314

Bwali M. (2017). Bharhati Airtel to exist Zambia, www.TheMastonline.com,

Accessed 20 April 2017

Chungu C. (2013). Doing Business in Zambia, A unique flavor, chief executive

officer, Delloitte & Touch, Zambia.

Hart S and Dowell G. (2011). A natural resource-based view of the firm. Fifteen
years after, Journal of Management, 37: 1464-1479.

Issa T. (2010). Sustainable Business Strategy and PESTEL Framework,

International Journal of Business, Vol 1, issue 4, 2009-2022

Johnson G., Whittington R., Scholes K., Angwin D. and Regner P. (2014). Exploring
Strategy, 10th edition, Pearson Education Limited, Edinburgh Gate, United
Kingdom.

Kaira T. (2011). State of competition in Zambia Telecommunications Sector, the

African journal of information and communication, vol 1, issue 2,219-244

Malakata M. (2016). MNOs fighting for market share, www.itwebafrica.com, Zambia.

Malakata. M. ( 2012). "Zambian government reverses sale of Zamtel to Libya's Lap

Green". London:www.Pcadvisor.co.uk, Retrieved 9th April 2017.

Mukanga C.(2015) Zampost Rising http://www.zambianeconomist.com, Accessed:

10th April 2017

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Musonda C. (2010). Monopoly and Dominance by Zambia Telecommunications
Company, University of Zambia.

Mwale E. (2014). Article on ZAMTEL launches 4.G LTE, The Voice of Africas’ ICT
Sector, BIZTECH Africa. http://www.biztechafrica.com/article/zamtel-launches-4g-
lte/7573/, accessed 20 April 2017

Nickols F. (2016). Planning and Strategic Thinking, Strategic Management. Pearson

Education, London, UK.

Porter M.E (2008). The Five Competitive Forces that shape Strategy, Special Issue
on HBS Centennial. Harvard Business Review 86 no.1, pp. 102-122

Scott J. (2013) Strategy to Execution, www.accelare.com/blog/2013/08/19

Soko E. (2012). Oligopolies in Zambia’s mobile Telecommunication Industry,

Economic analysis.

Thakur S. (2014).Cost Leadership or Differential, Communications and Digital,

Strategy Marketing.

Zafar.F., Babar.S and Abbas.H, (2013). The Art of Strategic Management, European
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Zulu H. (2015). Zamtel to offload 1000 Towers. Times of Zambia

http://www.times.co.zm/?p=98449, accessed 20 April 2017.