Digital Business Transformation In Silicon Savannah How M Pesa Changed Safaricom kenya Case Solution

That was the case in Kenya’s Telecom industry, none of the companies had thought about the product that can integrate telecom services with the financial transactions and that was the reason for its massive success. As mentioned in Exhibit 2, the company developed a simplified model of doing the traditional remittance business which lead to exponential growth of business.

The second point of disruptive innovations the ability of incumbent to overshoot customer needs and expectation by continuous innovation (King & Baatartogtokh, 2015). In case of banking industry th products nad services available for target customers have exceeded the needs and expectations. In terms of deposits as well as loan products there has been so much diversification of products. At the same time there are other segments of the market that are continuously ignored and the entire product development seems to be focused on specific segments. M-PESA took this space to build its own portfolio of products and services.

The third criteria that has been outlined for the product to be disruptive is the incumbent’s inability to respond and exploit the market in response of disruption (King & Baatartogtokh, 2015). Despite of having the resources and leverage of the network the companies often fail to respond to the new product or service because of their traditional ways of doing business.