Pestle Analysis: Safaricom

2285 Words Mar 22nd, 2012 10 Pages
TABLE OF CONTENTS
Introduction………………………………………………………………. 2
Company Profile…………………………………………………………... 2
Political Factors…………………………………………………………… 3
Economic Factors…………………………………………………………. 4
Social Factors……………………………………………………………… 5
Technological Factors……………………………………………………... 6
Environmental Factors…………………………………………………….. 7
Legal Factors………………………………………………………………. 7
Conclusion…………………………………………………………………. 8
References………………………………………………………………….. 8

INTRODUCTION

PESTEL analysis stands for Political, Economic, Social, Technological, Environmental and Legal analysis. PESTEL describes a framework of of macro-environmental factors used in the environmental scanning component of Strategic Management.PESTEL is a part
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This is a threat to Safaricom since it means that the company has to set aside some substantial sums of money whenever they venture into new areas.
Safaricom’s M-Pesa service has also come intense scrutiny especially from the banking industry.Thisn led the acting Minister for Finance to order an inquiry into the the lawfulness of the service which was however given a clean bill of health after the inquiry. This is also a threat to Safaricom’s future if politics is allowed to interfere with the company’s operations.

b) Tax Laws
Safaricom is one of the most taxed companies in Kenya. Taxation on mobile airtime is composed of VAT (16%), Excise levy (10%), annual CCK operating fees and the soon to be introduced Universal Service Fund Levy (0.5% - 1%) and all these continue to make the Kenyan telecommunications market one of the most heavily taxed markets. This is a threat since Safaricom will continue having to pay unnecessary taxes thus raising their prices and inadvertently chasing customers
c) Stability of the political system
Kenya’s political landscape is one which can be described as anything but stable.The 2007/2008 post-election violence exposed the fragility of our political system.It was during that period that our impressive economic years in the previous years started slowing down. There is also the constant bickering especially among government officials…

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