Winning Strategies for New Entrants
Ethiopia, one of the fastest-growing economies in Africa, is becoming a promising destination for telecom firms looking to expand their business operations. With a population of over 115 million and a growing demand for telecommunications services, the country is attracting an increasing number of new entrants into its telecom industry; however, entering a new market takes work, especially in a highly competitive sector like telecoms. As a new entrant, building a viable business in Ethiopia requires a carefully planned and executed strategy. This article will discuss practical strategies for new entrant telecom firms to build likely enterprises in Ethiopia.
Firstly, understanding the market is crucial. Comprehensive market research is essential to understand the local market dynamics, consumer behaviour, and competition. Telecom firms need to understand the unique challenges and opportunities of the Ethiopian market and adjust their strategies accordingly. It is essential to develop products and services tailored to the local market needs and preferences, for example, affordable rate plans and services such as mobile money transfer.
Secondly, establishing partnerships and collaborations is crucial for success. Entering strategic partnerships with local companies can help new entrants to navigate the complex regulatory environment and overcome the challenges of doing business in a new market. Partnering with local firms can also provide access to local networks, knowledge, and resources, which can be invaluable for building a solid market position.
Thirdly, investing in network infrastructure is crucial for building a viable business in Ethiopia. The country has a vast and diverse geography, and creating a robust network infrastructure that can cater to the entire population’s needs is crucial. Building a robust telecom infrastructure is an expensive undertaking, and it takes a very long time. Hence, a strategy that new entrants and existing players can use is creating a consortium to build and maintain the telecom infrastructure for all players. This approach will reduce the cost of building and maintaining the network for everyone while allowing firms to invest in growing and expanding their network coverage and capacity to ensure they can provide reliable, high-quality services to their customers.
Fourthly, offering innovative and affordable products and services is critical to success in the Ethiopian telecom market. Ethiopians are price-sensitive, and affordability is a significant factor in purchasing decisions. Therefore, telecom firms should focus on offering affordable packages that meet the needs and budgets of the local population. Additionally, introducing innovative products and services, such as mobile money and other value-added services, can help to differentiate telecom firms and create a unique selling proposition.
Finally, investing in talent and building a strong workforce is essential for success in Ethiopia’s telecom market, one that needs to be addressed. Telecom firms should prioritize hiring and training local talent to ensure they have the skills and knowledge to provide excellent customer service and support. Investing in employee training and development will also help to retain top talent and build a stable and motivated workforce.
In conclusion, the Ethiopian telecom market offers significant opportunities for new entrants to expand their business operations. However, building a viable business in the market requires a carefully planned and executed strategy that considers the unique challenges and opportunities of the local market. By understanding the market, establishing strategic partnerships, investing in network infrastructure, offering innovative and affordable products and services, and building a stable workforce, telecom firms can build successful and sustainable businesses in Ethiopia’s fast-growing telecom market.
11th Year • July 2023 • No. 119 EBR