M PESA2 strategic management thinking.pptx

Strategic thinking management presentation on M-PESA use case

1. M-PESA ECOSYSTEM CHALLENGES South Africa Region Imposed the threat of not collaborating with the MNOs to allow pilot trials in the initial phase of the project Did not allow easy penetration as the most popular bank Local Banks were not the favorite banks for the unserved crowd in south Africa. Therefore lack of trust and poor networking challenges were a threat to the M PESA model Vodacom could not adopt the mobile operator centric model or duplicate the adoption and launch process in Kenya in the South African Market They operated on a different business model of profit making Merchants were gaining their popularity in the market with their own platforms in different payment services imposing a genuine value proposition from MPESA in the South African Market The Merchant banks on the other hand operated on a similar business model in making profits by getting commission from the merchants They also interchanged their financial services with the commercial banks

2. Ecosystem Model and its Impact on M-PESA South Africa Region [9] There is collaboration on the services and therefore a split in the profit-making margin by diverting customer money to two channels and therefore the trustworthy and well-established commercial bank reserves had an upper hand Customer is paying a transaction to the bank for its services in addition to the merchant gateway to make the purchase with the help of mobile applications Customer is making a transaction with the mobile operator with a fee and the rest of the transaction was taken care off by the mobile operator