Case Study on Customer Relations Influence - Service Providers

pramitsingh30 · Oct 27, 2014

Description
This is a case study approach involving multiple cases for mobile telecommunication service providers from two countries namely, Tanzania and Zambia employing a qualitative research design.

COMPLETE MBA THESIS

CUSTOMER RELATIONS INFLUENCE AND
IT’S RELATIONSHIP WITH CORE
COMPETENCE: A CASE OF MOBILE
COMMUNICATION SERVICE PROVIDERS

Blekinge Institute of Technology
School of Management
MBA

Master’s Thesis in Business Administration

Authors: Emmanuel M. Mwanakatwe [email protected]
Joachim N. Mussa [email protected]
Supervisor: Dr. Urban Ljungquist
Date of submission: 07-06-2011

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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ABSTRACT

Purpose: The purpose of this thesis is to study and show how a customer relation through its
strategic key elements is related to Core competence.
Design and Methodology: This is a case study approach involving multiple cases for mobile
telecommunication service providers from two countries namely, Tanzania and Zambia
employing a qualitative research design. Literature review and theoretical framework resulted
into a proposal of a theoretical model of relationship between Customer relations and Core
competence. Open ended questions were designed so as to gain as much information as possible
from respondents; data were mainly collected through survey questions and face to face
interviews. Collected data were then analyzed using pattern matching technique and theoretical
model tested against the observed or actual model after data analysis and discussion of findings.
Findings: This study examines the relationship between Customer relations and Core
competence of a business. Customer relation strategies which are aimed at creating and
maintaining a strong Customer relations-base can only be fully implemented or executed from a
backing or support of an efficient Core competence, in other words, Core competence improves
and maintains a good and strong Customer relations base.
Applicability/Value: This research holds value and adds knowledge to the domain of strategy in
general and in particular in the area of Customer relations and core competence. Though it may
be limited in certain ways such as the type of industry researched, it certainly underscores
important issues to the understanding of customer relations and core competence concepts and
this knowledge can help in developing successful customer relations leading to increase in
market share, leadership and hence business profitability.
KEYWORDS: Customer relations, Core competence, Influence, Relationship, Customer
relations strategies

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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Acknowledgements

A manuscript of this nature of study can only be a synthesis of ideas and research work
conducted by scholars before us whose efforts we duly acknowledge. We pay glowing tribute to
Dr. Urban Ljungquist not only because of his valuable and constructive criticism he offered us
during our research work in his capacity as our thesis supervisor but also for his outstanding
accomplishments and contributions to the field of strategy in general.
Many individuals made their own unique contributions to this work in ways that we cannot begin
to imagine and the list is endless, not forgetting the respondents to our questionnaires. We
applaud them all. Special tribute goes to both MTN and AIRTEL Zambia management for
availing us their members of staff who made it possible for us to get practical data on the unique
importance of their customers in the value chain. Thus, we value the input of both AIRTEL
Customer Services Director and MTN Manager Customer services; Mr. Mato Shimabale and Ms.
Mzyece Chimfwembe respectively.
We also want to thank our classmates Rachel Reid and Maria Andersson for providing us that
critical lens through which we saw loopholes in our research work and consequently managed to
see a bigger picture of what was expected of us.
Lastly but not the least, I, Joachim, would like to equally thank my wife for unending support
and even taking trouble of staying over with me during reading, typing and compiling of this
report.

Mussa and Mwanakatwe
June, 2011

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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ABSTRACT .................................................................................................................................................. 2
ACKNOWLEDGEMENTS .......................................................................................................................... 3
CHAPTER ONE ........................................................................................................................................... 7
INTRODUCTION .................................................................................................................................... 7
1. BACKGROUND .......................................................................................................................... 7
1.1 PROBLEM DISCUSSION ....................................................................................................... 8
1.2 PROBLEM FORMULATION AND PURPOSE ...................................................................... 9
CHAPTER TWO ........................................................................................................................................ 10
THEORY ................................................................................................................................................ 10
2.0 INTRODUCTION ........................................................................................................................ 10
2.1 CUSTOMER RELATIONS ...................................................................................................... 11
2.1.1 Customer loyalty ................................................................................................................ 11
2.1.2 Service Quality ................................................................................................................... 11
2.1.3 Communication .................................................................................................................. 12
2.1.4 Innovation .......................................................................................................................... 12
2.1.5 Customer Care.................................................................................................................... 13
2.1.6 Customer Value.................................................................................................................. 14
2.2 CORE COMPETENCE ............................................................................................................ 14
2.3 THEORETICAL FRAMEWORK ............................................................................................ 18
FIG 1: PROPOSED RELATIONSHIP STRUCTURE MODEL ................................................................ 21
FIG 2: CONCEPTUAL MODEL ............................................................................................................... 22
CHAPTER THREE .................................................................................................................................... 23
METHODOLOGY ................................................................................................................................. 23
3.0 INTRODUCTION .................................................................................................................. 23
3.1 Research Approach ............................................................................................................. 23
3.2 Sample Size ......................................................................................................................... 25
3.3 Data Collection ................................................................................................................... 25
3.3.1 Primary Data ................................................................................................................... 25
3.3.2 Secondary Data ............................................................................................................... 27
3.4 Data Analysis ...................................................................................................................... 27
3.4.1 Collecting and processing of Data ...................................................................................... 29
TABLE 1: SURVEY QUESTIONS ASKED TO SELECTED CUSTOMERS ......................................... 30
TABLE 2: FACE TO FACE INTERVIEW QUESTIONS CONDUCTED WITH MANAGERS AND
FRONTLINE STAFF ................................................................................................................................. 31
3.5 RESEARCH LIMITATIONS ............................................................................................. 31
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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3.6 ETHICAL CONSIDERATIONS ........................................................................................ 32
3.7 CONTENT VALIDITY AND RELIABILITY .................................................................. 32
CHAPTER FOUR ....................................................................................................................................... 33
EMPIRICAL CASES .............................................................................................................................. 33
4.0 MOBILE TELECOMMUNICATION IN TANZANIA AND ZAMBIA ............................... 33
4.1 HISTORY OF MOBILE TELECOMMUNICATION IN TANZANIA ............................. 33
4.2 HISTORY OF MOBILE TELECOMMUNICATION IN ZAMBIA ................................. 34
4.3 PROFILE OF CASE STUDY MOBILE TELECOMMUNICATION SERVICE
PROVIDERS .................................................................................................................................. 35
4.3.1 VODACOM (T) Ltd ....................................................................................................... 35
4.3.2 AIRTEL Tanzania and Zambia ....................................................................................... 36
4.3.3 MTN Zambia................................................................................................................... 37
CHAPTER FIVE ........................................................................................................................................ 38
ANALYSIS OF DATA AND DISCUSSION OF FINDINGS ................................................................ 38
5.0 INTRODUCTION .................................................................................................................. 38
5.1 CROSS-CASE ANALYSIS OF COLLECTED DATA ..................................................... 38
TABLE 3: CUSTOMER RELATIONS ASPECT ...................................................................................... 39
TABLE 4: CORE COMPETENCE ASPECT ............................................................................................ 40
TABLE 5: PERCEIVED RELATIONSHIP ASPECT OF CORE COMPETENCE AND CUSTOMER
RELATIONS .............................................................................................................................................. 41
TABLE 6: PERCEIVED RELATIONSHIP ASPECT OF CORE COMPETENCE AND CUSTOMER
RELATION STRATEGIES ........................................................................................................................ 42
5.2 DISCUSSION OF FINDINGS ........................................................................................... 43
CHAPTER SIX ........................................................................................................................................... 48
CONCLUSION AND IMPLICATIONS ................................................................................................ 48
6.0 INTRODUCTION .................................................................................................................. 48
6.1 CONCLUSION .................................................................................................................. 48
6.2 IMPLICATIONS AND RECOMMENDATIONS ............................................................. 50
REFERENCES ....................................................................................................................................... 51

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS

FIGURES

FIG 1: PROPOSED RELATIONSHIP STRUCTURE MODEL ..................................................................... 21
FIG 2: CONCEPTUAL MODEL ........................................................................................................... 22

TABLES
TABLE 1: SURVEY QUESTIONS ASKED TO SELECTED CUSTOMERS................................................................................. 30
TABLE 2: FACE TO FACE INTERVIEW QUESTIONS CONDUCTED WITH MANAGERS AND FRONTLINE STAFF ..................... 31
TABLE 3: CUSTOMER RELATIONS ASPECT ..................................................................................................................... 39
TABLE 4: CORE COMPETENCE ASPECT ......................................................................................................................... 40
TABLE 5: PERCEIVED RELATIONSHIP ASPECT OF CORE COMPETENCE AND CUSTOMER RELATIONS ............................. 41
TABLE 6: PERCEIVED RELATIONSHIP ASPECT OF CORE COMPETENCE AND CUSTOMER RELATION STRATEGIES .......... 42

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS

CHAPTER ONE

INTRODUCTION

1. BACKGROUND

Customer relations and Core competence are very important resources that the company must
possess. There have been several studies done along these areas and that their importance cannot
be undermined as they are keys to company success in the competitive market. Successful
customer relations will give the company a lead and an edge against its competitors in the market
as customer related aspects such as, customer experience, loyalty, satisfaction, and retention, etc
are ensured. Core competence on the other hand differentiates the company from its competitors
through its competencies, capability and resource and therefore giving it a competitive
advantage.
A need thus, exists to expand our understanding on these important issues through research to
consequently contribute knowledge in this domain. This study explores the components of and
which are strategies of Customer relations, establishing the relationship between customer
relations with core competence. This is accomplished by doing a case study on chosen
companies operating as mobile telecommunication service providers in two countries namely
Tanzania and Zambia.
With the opening up of their international communication gateways, many African countries
have witnessed a surge in the level of investment in this sector of the economy. In fact, the
telecom sector today is one of the major contributors driving economic growth in most African
countries. While some players in this sector have and continue to record profitable growth, others
have not been as profitable. Our firm specific focus within the telecom sector is AIRTEL and
MTN in Zambia and; AIRTEL and VODACOM in Tanzania. For instance, of the two dominant
telecom companies in Zambia which one of them has more customer base? And would we relate
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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customer base to core competence traits within a company in anyway? Do customer relations
play any influence on the performance of different working elements within a company?

1.1 PROBLEM DISCUSSION

Core competency is an area of specialized expertise for an organization, it’s a collective learning
of an organization, especially on how to coordinate diverse production skills and integrate
multiple streams of technologies (Prahalad & Hamel, 1990). Core competence concept describes
how a large organization can prosper and achieve competitive advantage (Ljungquist, 2007).
Core competence is a valuable resource that the company can own, it needs constant
development and improving to avoid it being imitated by competitors. Customer Relations on the
other hand, refers to the interaction between the company and the customer with an ultimate aim
of building that long term relationship. Customer relations has evolved from 1960s when it was
regarded only as a customer complaints management section to Customer relations department
(Bhote,1996; Eppe, 1997; Vavra, 1995) seeking to build a solid Customer base relationship. But
could there be a link conceptually, empirically or otherwise between core competence and
customer relations? There has been extensive work carried along these two lines and their
respective components but not specifically identifying the relationship between them. More
research, therefore, is required towards this area; to understand the practical applications and to
formulate more proven theoretical details. It is, thus, the aim of this Thesis to do a research study
on the relationship between customer relations and core competence. For this research work and
in trying to keep our work focused, we will endeavor to identify key customer relations strategies
or the main components of customer relations and then establish or formulate a relationship
between these key customer relations strategies and how they influence and/or relate with core
competence. We believe this approach to studying the relationship between customer relations
and core competence provides a meaningful and clear perspective as it breaks up customer
relations into separate components or constituencies and how these components relate and
influence core competence.

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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1.2 PROBLEM FORMULATION AND PURPOSE

1.2.1 Problem formulation: To research and study customer relations influence
on company core competence

1.2.2 Purpose

1.2.2.1 To study customer relations; its components; and core competence
1.2.2.2 Formulate a theoretical relationship between these customer
relations components or strategies and company core competence

In the theory chapter, the document at the end presents a proposed theoretical model gathered
from the study of literature review and previous related work on Customer Relations and Core
Competence.

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS

CHAPTER TWO
THEORY

2.0 INTRODUCTION

Core Competence - Customer Relations influence; presents itself as an interesting phenomenon
particularly in the context of today’s company management. For instance, do customers and the
manner in which they relate to the company play a role on company core competencies?
Organizations compete for customers, profit and market share with their products and services
that meet customers’ needs. Core competencies are innovative combination of knowledge,
special skills, proprietary technologies, information and unique operating methods that provide
the product or service that, customers’ value and want to buy (Gupta, 2009). In fact, the focus of
core competence is the customer. So the identification and development of core-competencies
should be done by keeping the customer at the centre (Gupta, 2009). If a qualification criterion of
a core competence is that it must enhance the benefits a customer derives from using a product or
service; must have the ability to make the company have access to a wide market; and that
competitors must find it difficult to imitate then the converse is true, meaning it is possible to
trace the influences of a customer and markets and their effects on a core competence. In short,
the relationship is symbiotic. The purpose of this research work is to identify key customer
relations strategies or the main components of customer relations and then establish or formulate
a relationship between these key customer relations strategies and how they influence core
Competence.
Lastly, to systematically accomplish the purpose of this research work a separate and individual
analysis of customer relations and core competence is conducted. A theoretical framework
discusses possible synergies between customer relations and core competence. These synergies
form the basis of formulating the relationship between customer relations and core competence.
Later a theoretical model is formulated with a view to not only synthesize but consolidate the
overall picture of the relationship between customer relations and core competence.
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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2.1 CUSTOMER RELATIONS

Customer relations is the process by which companies promote customer satisfaction and,
moreover, loyalty. At its most basic, it involves managing communications with customers,
particularly customer questions and complaints, and resolving disputes amicably. Ultimately the
goal of most customer relation programs is to build long-term relationships—those in which the
customer keeps buying the product or service and recommending it to others— with customers
(Reference for Business, Encyclopedia of Business, 2
nd
edition).

2.1.1 Customer loyalty

A well-developed customer relations program should be able to turn occasional customers into
loyal buyers. Customer relations specialists, though, distinguish loyalty from satisfaction, noting
that it's possible for customers to be satisfied but have no particular loyalty (Reference for
Business, Encyclopedia of Business, 2
nd
edition), moreover there is evidence that transaction-
oriented customers, not interested in a loyal relationship, also can form a profitable segment
which should not be neglected (Reinartz and Kumar, 2000). Loyalty, however, is the feeling that
a customer has about the brand. Loyalty ultimately generates positive and measurable financial
results. Improvements in retention and increase in share of customer are the obvious economic
benefits (Duffy, 2003).

2.1.2 Service Quality
In customer relations, service quality is regarded as one of the few means for service
differentiation and competitive advantage which attracts new customers and contributes to the
market share and that it is an important means for customer retention (Venetis & Ghauri, 2004).
In a world where more and more products and services are becoming alike, there is so much
choice: choice of supplier, choice of channel, choice of products and services. The real question
to ask is, ‘How do your products or services stand out from the crowd?’ Differentiation is the
order of the day (Wellington, 2010). Consequently the implication of this abundant sea of
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS
choices is that the quality of the product and customer service must be one of supreme
importance. It has been argued that service excellence enhances customers’ inclination to buy
again, to buy more, to buy other services, to become less price sensitive, and to tell others about
their positive experiences (Anderson and Fornell, 1994; Anderson et al., 1994; Rust et al., 1995;
Zeithaml et al., 1996; Bolton et al., 2000). Empirically this, assumption is supported by several
studies that consistently find a positive impact of service quality on customers’ behavioral
intentions. Bitner (1990), Bolton and Drew (1991), Boulding et al. (1993) and Cronin and Taylor
(1994) find that service quality has a positive impact on customer’s repurchase intentions and
intentions to recommend the company to others.

2.1.3 Communication

This customer relations strategy greatly enhances a company relationship with a customer. The
main aim must always be to build a ‘trusted advisor’ relationship with a customer by showing
genuine interest, not just in the immediate topic you are discussing, but also in broader picture
issues (Wellington, 2010). By being close to the customer, a company must quickly focus on
developing fresh customer insight and establishing digital channel leadership that will allow
them to transform customer experience, open new markets and reduce organization complexity
(Baird and Wertz, 2011). Within communication, strategic methods such as face-to-face
interactions with a customer have been described as a competence important in the relationship
with customers (Harwood, 2005) and a competence essential to the longevity of a business
relationship. This form of communication strategy equally provides insights into customer
feelings and perceptions about the company and when properly managed face-to-face relations
with customers can act as a vehicle through which wider opportunities or markets could be
derived.

2.1.4 Innovation

In today’s dynamic and highly competitive business landscape innovation is critical. Companies
at the leading edge of innovation are likely to succeed and gain significant market share in the
long run. Empirical studies show the relevance of early customer integration within a company’s
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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innovation process (Peplow, 1960; Enos, 1962; Knight, 1963; Freeman, 1968; Meadows, 1969;
Utterback, 1971; Berger, 1975; Boyden, 1976; von Hippel, 1976; Lionetta, 1977; van der Werf
1982; Shaw, 1985; Voss, 1985; Biegel, 1987; Gemünden et al., 1992, 1996; Riggs, von Hippel,
1993 and Slaghter, 1994). Prahalad and Ramaswamy (2000) describe how customers moved
from being passive recipients of product development in the 1970s and early 80s towards
demanding to play a more active role in the 21st century. “Consumers can now initiate the
dialogue; they have moved out of the audience and onto the stage” (p. 80). Consumers can now
be co-creators of values because they are seen as a source of competence (Gassmann & Enkel,
2004). Besides systematizing the innovation process, the creative centre also searches for and
connects with key customers in order to integrate their knowledge and demands into future
research scenarios (Gassmann & Enkel, 2004). A strategy called six-sigma, espouses mass
customization, and recognizes that each customer is unique and has highly individualized
requirements. Each customer today wants exactly what he wants, where he wants it, when he
wants it, at the price he wants (Bhote, 2003). The open innovation paradigm as coined by Henry
Chesbrough is based on the premise that external sources, just as equally as internal ones, are
important in the innovation process. It is defined as the use of purposive inflows and outflows of
knowledge to accelerate internal innovation, and expand the markets for external use of
innovation, respectively. Open innovation is a paradigm that assumes that firms can and should
use external ideas as well as internal ideas, and internal and external paths to market, as they
look to advance their technology (Chesbrough, 2005)

2.1.5 Customer Care

The strategic value of customer care is another evolutionary driver having a profound impact on
customer relations and whose ultimate results are increased customer responsiveness and
satisfaction, creation of customer loyalty and increased retention, lower marketing and account
acquisition costs and enhance corporate image and competitive advantage (IBF Management,
LCC, 2004). It is equally true that companies that understand how customer preferences are
evolving are those most likely to be well positioned to assume market leadership positions over
the next few years (Baird and Wertz, 2011). Finally, satisfied customers feel good only as long
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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as their current needs are met and only as long as they perceive that a supplier is giving value
(Wellington, 2010).

2.1.6 Customer Value

Any company needs to build that important one-on-one customer relationship. Customers
achieve greater [customer] value when the overall perceived benefits derived from products,
services and brand exceed a meaningful margin of the cost of obtaining these benefits. Customer
relationship marketing attempts to create additional customer value through personalized
communication, extra services, customized products, and special price offerings. Of course, these
added customer benefits come at some cost to the customer. When the customer perceives the
overall benefits exceeding the overall costs by a meaningful margin, there is an attractive level of
customer value in the one-on-one customer relationship (Best, 2009). The importance of
customer value just like the other strategies mentioned, enhance customer experience, customer
focus, customer awareness and comprehension as well as satisfaction. It also places a company
in a position where it empathizes with each customer in that one-on-one relationship.

2.2 CORE COMPETENCE

The concept of core competence, as fundamental to organizational renewal and as a driving force
behind strategic change interests both managers and scholars. It is a complex and challenging
concept: it is difficult to specify theoretically, to identify empirically as a phenomenon, and to
apply in practice (Bani-Hani & AlHawary, 2009). Scholars have recently recognized these
problems in general conceptual discussions (Hafsi and Thomas, 2005) and in core competence-
specific empirical research (Wang et al., 2004). However, as a simple definition, earlier
researchers in this strategy domain defined core competence as a bundle of skills and
technologies that enable a company to provide a particular benefit to customers (Hamel and
Prahalad, 1994). Core competencies are not product specific; they contribute to the
competitiveness of a range of products or services. They are the roots of competitiveness and
individual products and services are the fruit. A core competence is a tapestry woven from the
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS
threads of distinct skills and technologies (Hamel and Prahalad, 1994). A skill must meet three
tests to be considered as a core competence, i.e., customer value, competitor differentiation, and
extendibility (Bani-Hani & AlHawary, 2009). A company core competence is a company’s
strategic strength. Core competencies are particular strengths relative to other organizations in
the industry which provide the fundamental basis for the provision of added value (Bani-Hani &
AlHawary, 2009). It is what the company does best and what it should never outsource;
organizational core competencies—the unique resources of an organization—affect many
products and services and provide a competitive advantage in the marketplace (Johnson &
Scholes, 2002). There are three associated concepts with core competence, namely; competence,
capability and resource (Prahalad CK, 1993); and these have different characteristics, all of
which could influence a core competence (Ljungquist, 2010). A competence is the ability to
sustain the coordinated deployment of assets in ways that help a firm to achieve its goals
(Sanchez, 2004). A capability is a tangible or intangible; it is firm specific and created over time
through interaction between resources (Amit & Shoemaker, 1993) or strategically understood
business processes (Stalk, Evans & Shulman, 1992) while a resource is an input to the value
process (Grant, 1991). The process of identifying core competencies usually entails having
employees identify core competencies by scanning and assessing company-critical resources,
capabilities, and competencies (Prahalad & Hamel, 1990) three factors commonly referred to as
“associated concepts”. Core competencies should not be confused with core technologies and/or
capabilities. Core technologies are a component of core competencies. In other words, core
competence results when a business learns to harmonize multiple technologies (Prahalad, 1993).
However, for core competence issues, understanding company history is also important for
practical reasons since today’s products exist because of previous investments in core
competencies. Neglecting to make the necessary investments is known as the “innovators
dilemma” which has also been studied empirically (Ljungquist, 2010).
In further discussing core competence, three criteria for something to be termed a core
competence according to Gary Hamel and CK Prahalad include;
1. Core-competence provides potential access to a wide variety of markets. That is, the
competence should give access to new product arenas, arrayed from its current
embedded products.
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS
2. A Core-competence should make a significant contribution to the perceived customer
benefits of the end product. This does not mean that the customer must be able to
identify the competence per se, but that it would be a great disadvantage if it were
missing.
3. A Core-competence should be difficult for competitor to imitate. And it will be difficult
if it is a complex harmonization of individual technologies and production skills. This
means that while competitors may also have the competence, only one company in the
industry can gain core competence from it. Companies may need certain competencies
to be able to participate as fully as competitive in an industry. These competencies are
not core, but necessary.
Competencies are commonly agreed to reside in individuals and teams of individuals, implying
that the competence concept involves a cumulative hierarchy. Some researchers have also
dissected competence in terms of “distinctive competence” and “core distinctive competence”
(Eden and Ackermann, 2000). Distinctive competence is a particular strength within a company
that is difficult to imitate and may be used to generate sustainable profits; core distinctive on the
other hand are competencies that primarily drive the aspirations systems (Eden and Ackermann,
2000, p. 16). Another hierarchy involves three competence categories: distinctive competencies,
which are the most important in a company; necessary competencies, which do not differ from
those of competitors but which are needed for operational reasons; and protected competencies,
which can hurt the company if misused (Heikkilä and Cordon, 2002). In a word, core
competencies are particular strengths relative to other organizations in the industry which
provide the fundamental basis for the provision of added value (Bani-Hani & AlHawary, 2009).
As a widely researched area, other scholars have defined a firm’s core competence as “the vector
of the irreversible assets along which the firm is uniquely advantaged; although the vector is
multidimensional, reflecting the entire system of tangible and intangible resources that the
organization has in place, it is commonly represented on a single plane” (Collis, 1991, pp 51).
The vector described in this context by Collins, though, can be seen as path dependent (Dierickx
& Cool, 1989; Leonard-Barton, 1992), in the sense of it being an accumulation of historic
decisions and investments. Thus, here core competence is seen not as a future investment, but as
being determined by history (Ljungquist, 2007).

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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Rumelt another scholar in this field suggests that core competencies can be distinguished by four
attributes: a) they are capabilities that span different aspects of a company, such as different
businesses and different products; b) they change more slowly than their resulting products; c)
they take place through collective learning; and d) the competitive locus is at stake for
acquisition of skills (1994). The concept has also been contrasted with the process of innovation,
in comparing companies with different degrees of performance (Pennings, Cobbenhagen & den
Hertog, 1996). Pehrsson proposes that the focus on core competence in highly related businesses
leads to high strategy competence and performance (2006a), while Godbout brings in human
resource management as critical in building core competencies (2000). Core competence has also
been viewed as a strategic platform that eases a company’s redeployment of resources in order to
promote changes and opportunities (Unland & Kleiner, 1996). It is a strategic flexibility, in
particular regarding resource deployment and routine reorganization (Hafeez et al, 2002). They
define a competence as collectiveness: “the integration of key capabilities in the company wide
business activities” (p. 32). The existing literature also contains an explorative empirical study of
12 multinational companies (Mascarenhas et al., 1998). The findings reveal three types of core
competencies: superior technological know-how, reliable processes and close relationship with
external parties.
The most common criteria for technological competence were exposure to a demanding
technical, operating or economic environment. For reliable processes competence, the necessary
requirement was a mix of formal and informal corporate culture that minimizes waste, delivers
customer value and delivers standards and minimal deviations. The last competence, close
relationship with external parties, was most commonly developed through acquisitions and to
market the company’s international reach to partners and to forge external relationships through
attractive technologies and/or reliable processes (Ljungquist, 2007).
Finally, not all competencies are relevant as core competencies, since core competencies cannot
be assets (or things) such as patents, brands, production facilities and raw materials (Prahalad &
Hamel, 1990).

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS

2.3 THEORETICAL FRAMEWORK

Having identified key customer relations strategies; we now need to establish or formulate their
relationship and influences on core competence. As we relate these customer relations strategies
to core competence, we have kept in mind the definition of the latter; that is, a core competence
should make a significant contribution to the perceived customer benefits of the end product,
must be difficult for competitors to imitate and should provide potential access to a wide variety
of markets (Prahalad & Hamel, 1990; Hamel & Prahalad, 1994). Thus, in this study, the
relationship existing between a given customer relations strategy and core competence is based
purely on the former’s conformity to the definition of core competence as amply laid out by Gary
Hamel and CK Prahalad. In some instances, however, we relate and qualify a particular strategy
to core competence when they fulfill at least two of the three criteria as defined by the authors
stated.
The influence(s) on the other hand highlights the traits that each customer relations strategy
inherently possesses and whose impact on the business environment can be determined in
measureable terms. The term ‘measurable’ in this document is loosely connected to how much a
given strategy influences customer retention, product or service differentiation, what
opportunities and competitive advantage it creates; as well as market share and profit it generates
for the company. This study presupposes that the influences reinforce the kind of relationship
that exists between a given customer relations strategy and core competence. For instance,
service differentiation (influences) company processes in unique ways that make it difficult for
competitors to imitate.
Our research model structure adopts a conceptual approach and link customer relations strategies
to core competence highlighting all the assumptions made (figure 1). Duff observes that
customer loyalty [programs] generates positive and measurable financial results leading to
improvements in retention and increase in share of customer (2003). Customer loyalty thus,
influences and relates to core competence both because it contributes to increase in customer
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS
share (wider access to markets) and improves retention (contributes to perceived customer
benefit of the product).
Service quality is a vehicle for service differentiation and competitive advantage which attracts
new customers thereby contributing to the market share and which is an important means for
customer retention ( Bitner, M.J. (1990, Bolton, R.N. and Drew, J.H. 1991, Boulding, W., Ajay,
K., Staelin, R. and Zeithaml, V.A, 1993, Cronin, J.J. Jr and Taylor, S.A. 1994). Further, Bitner
(1990), Bolton and Drew (1991), Boulding et al. (1993) and Cronin and Taylor (1994) find that
service quality has a positive impact on customer’s repurchase intentions and intentions to
recommend the company to others. Service quality influence on core competence is twofold,
through differentiation, it is capable of attracting new customers by way of customer
recommendation of the product to others, thereby contributing to increase in market share;
secondly, it is a means for customer retention. Its relationship to core competence based on the
above stated influences is that, it makes a company have access to wider markets and also
contributes to perceived customer benefit of the product.

Communication and in particularly face-to-face as an important element in customer relations
enhances the relationship with a customer. Face-to-face interactions with a customer have been
described as a competence important in the relationship with customers (Harwood, 2005) and a
competence essential to the longevity of a business relationship. By being close to the customer,
a company must quickly focus on developing fresh customer insight and establishing digital
channel leadership that will allow them to transform customer experience and open new markets
(Baird and Wertz, 2011). In the study on 12 multinational companies (Mascarenhas et al., 1998)
for instance, one of the clearly identified core competence is close relationship with external
parties. This customer relations strategy provides insights into customer feelings and perceptions
about the company and when properly managed can act as a vehicle through which wider
opportunities or markets could be derived. Its influence and relationship on core competence are
customer insight and more opportunities; perceived customer benefits of the end product and
wider access to markets respectively.
Companies at the leading edge of innovation are likely to succeed and gain significant market
share in the long run (Berger. A, 1975; Boyden. J, 1976; Einsenhardt, K and Martin, J, 2000;
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS
Freeman. C, 1968; Johnson & Scholes, 2002; Knight. K, 1963; Lionetta, W.G, 1977; Meadows.
D, 1969; Peplow. M.E, 1960; Sanchez. R, 2004; Slaughter. S, 1994; Utterback. J, 1971; von
Hippel. E, 1976). Innovation opens up a company to wider markets. Innovation influences core
competence by virtual of its capability to customer retention and offering more opportunities. It
relates to core competence since through retention, customers benefit from the products
perceived value; and also makes a company have access to wider markets, since it opens up a
company to more opportunities.
Customer care profoundly impact on customer relations with ultimate results being increased
customer responsiveness, satisfaction and retention, lower marketing and account acquisition
costs and enhance corporate image and competitive advantage (IBF Management, LCC, 2004).
Companies which understand how customer preferences are evolving are those most likely to be
well positioned to assume market leadership positions over the next few years (Baird & Wertz,
2011). This customer relations strategy influences core competence through customer retention
and providing a company with a competitive advantage; and whose relationship result is
customers benefit from the products perceived value and difficulties in competitor imitation of
the company and its processes.
Customer value as a customer relations strategy, attempts to create additional [customer] value
through personalized communication, extra services, customized products, and special price
offerings (Best, 2009). The customer benefits through enhance customer experience, customer
focus, customer awareness and comprehension as well as satisfaction. Satisfied customers are
less likely to leave the company; therefore, retention is achieved; which in itself forms its
influence on core competence. The relationship on the other hand is that since retention is
achieved through it, customers benefit from the products perceived value.

As can be seen from the preceding theoretical framework analysis reinforced graphically by the
proposed relationship structure model in figure 1, clearly the identified customer relations
strategies form synergies and linkages with core competence. The existing synergies; that is, the
influences and relationships on one hand, and the customer relations strategies on the other
together form the foundation for the proposed conceptual model presented in figure 2 making it
therefore, the research model of this study.
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS

Fig 1: Proposed relationship structure model

Customer Relations

Preferences
Customer loyalty
Service Quality
Communication
Innovation
Customer care
Customer value
Core Competence
Core Competence
Core Competence
Relationship
Benefit and access to wider mrkts
Influence
Difficult to imitate
Access to mrkts, Cust benefit
Cust benefit, Access to mrkts
Access to mrkts, difficult to imitate, cust benefit
Customer benefit
Cust benefit, difficult to imitate
Retention & increase in share of customer
Differentiation & competitive
advantage
Customer insight, more opportunities
Retention & significant opportunities
Cust responsiveness, retention & comp advantage
Customer insight
Market leadership
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS

Fig 2: Conceptual model: The relationship structure model in figure 1 is condensed and arranged in a
conceptual model (figure 2) to clearly show the actual constituencies or elements comprising both the
relationship and influences between customer relations strategies and core competence. Since the
purpose of this study is to determine the overall influences and/or relations between customer relations
and company core competence, figure 2 clearly brings these aspects to the fore.

Theoretical Link
Proposed Link

Customer Relations
Strategies
Customer Relations
Core Competence
Components
A two way relationship link- strategies depend on and
will only be successfully implemented using available
core competence, this in turn creates an efficient
Customer relations base.
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS

CHAPTER THREE
METHODOLOGY

3.0 INTRODUCTION

This Chapter discusses the Methodology employed in this research. The chapter comprises of
some main sections. The first section gives a brief overview on methodology; section two
explains the research design and defends the choice for the type of research, that is, case study
and the adopted method which is qualitative research. Section three discusses sampling design
and sample size while the fourth section discusses the techniques employed for data collection as
well as question designs, lastly section five looks at the process of preparation of empirical data
for analysis as well as limitations, challenges and ethical issues considered in this research.

3.1 Research Approach

A Research Methodology is a philosophy or the general principle which will guide a research
(Dawson, 2002). There are various ways or approaches of doing research (Yin, 2003; Creswell
2007; Dawson, 2002). According to Yin, the major ways applied on doing research are case
study, experiments, surveys, histories and the analysis of archived data (Yin, 2003).
Yin goes further to distinguish these strategies from each other and that each may have either
advantage or disadvantage when applied depending on three conditions which are; type of
research question, control that the researcher has over behavioral events and the focus on
contemporary as opposed to historical phenomena (Yin,2003).
The three conditions mentioned previously are ones which basically distinguish the strategies
and characterizes them, however, the strategies my overlap each other. The importance is to be
able to use a strategy or an approach which will prove advantageous in the research (Yin, 2003).
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS
In summary, the first condition answers the questions of the research: typical questions of the
research; ‘who?’, ‘what?’ ‘where?’, ‘how?’, and ‘why?’(Yin, 2003), that is, choose strategy
based on the main inquiry of the research; however a combination of these methods can be used.
Control over behavioral events for the researcher refers to the ability or inability of the
researcher to directly manipulate or change the behavior relating to the events of the research and
finally is the condition on the research being contemporary as opposed to historical data (Yin,
2003).
Coming back to this research, the how and why questions are primary, looking on what are the
company strategies that are influenced by Customer relations and how they are connected with
core competence. Therefore, for this Research, Case study is used as an approach to gain
understanding on the ‘what’, ‘how’ and ‘why’ questions (Yin, 2003). Yin states that Case study
is a preferred strategy when the investigator has little control over the events, it is used in many
situations to contribute to our knowledge of organizations, individuals, social, political,
economics, Business, etc.( Yin,2003).
A case study is a good approach when the inquirer has clearly identifiable cases with boundaries
and seeks to provide depth understanding of the cases or comparison of several cases (Creswell,
2007.pg.74).
This research will be a comparative of two companies in the mobile telecommunication service
business for both Tanzania and Zambia. The research method chosen is qualitative. A qualitative
research explores attitudes behavior and experiences, a research with written words like,
‘discover’, ‘experiences’, ‘problems’, behave/behavior’ suggest a leaning unto qualitative
research (Dawson, 2002).
Case study research is a qualitative approach in which the investigator explores a bounded
system (case) or multiple bounded system (cases) over time through detailed in-depth data
collection involving multiple sources of information (e.g., observations, interviews, audiovisual
materials and documents and reports), and reports a case description and case based themes
(Creswell,2007, pg.73)
The initial stages of this qualitative research are to do an in-depth study of available literature
and techniques regarding the research problem; that is, discovering key customer relation
strategies of the company that are constituted in Customer relations and then draw the link with
core competence and thereby contributing to the knowledge along this field of study.
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS

3.2 Sample Size

Qualitative Research is aimed at getting the knowledge of the problem in question and therefore
not necessarily the count of numerical numbers of how many responded yes or no (Dawson,
2002). Thus to get an anticipation of what people or participant would likely say, a proposed
sample size will comprise of two employees one of which must be a in managerial position and
taken from each of the case study companies (two service providers in Zambia and two from
Tanzania); for a face to face or telephone interview - this is aimed at obtaining information on
the company’s business strategic strengths and how they are influenced by customer relations
policies set by the company. Interviews are also set to be conducted with ten randomly selected
subscribers from each network to gain more feedback on the value of service provided; at the
same time soliciting what there distinguished performance strengths (core competence) of each
service provider. It is anticipated that this data is expected to be useful in drawing the link
between Customer relations and core competence.

3.3 Data Collection

3.3.1 Primary Data

As stated above, data collection is done as face to face or telephone-call interview for company
managers, and selected interviewees, semi-structured questions are asked pointing to a specific
information, data collected or answers to these questions will be easily contrasted with other
interview conducted elsewhere (Dawson, 2002). Semi-Structured interview questions avoid
having too many data which can be difficult to analyze or transcript (Yin, 2003; Creswell, 2007).
Responses to specific questions form a topic by itself. Group one participants who are comprise
frontline members of staff and their managers in the customer relations departments are as
below:-
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Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS

3.3.1.1 Describe the importance of customer relations to your business in
the competitive market place?
3.3.1.2 State some common or otherwise challenges and difficulties you
encounter in your day today interaction with customers?
3.3.1.3 What is your company strategic strength?
3.3.1.4 How would you relate your company strategic strength to the
overall customer relations policy with your company?

Group two questions were specifically aimed to mobile service users or customers from
across all the case study companies, the questions were intended to collect information on
how the company’s customer relations is perceived as well as its core competence, users of
service or product are the trustworthy source to tell how the company is performing in the
market even to describe possessed core competence. These were randomly selected
customers and below were the questions asked:-

3.3.1.5 What are your service providers’ distinguished value(s) or
capabilities in meeting your service needs?
3.3.1.6 How can you describe the level of customer relationship with your
service provider?
3.3.1.7 Does customer relations of your service provider relate to the
company capabilities? Please briefly explain how
3.3.1.8 How does each of the below reflect or relate to your service
provider’s competencies, capabilities and resources;

- Level of Service Quality received
- Communication with your provider
- Satisfaction (service received meets expectations)
- Network coverage (availability)
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS
- Retention/Loyalty (remaining an all time subscriber to this service
provider)

3.3.1.9 What is your view on how a service provider (please describe a
Service provider [ideal one] of your preference) should relate its
competencies, capabilities and resources with its Customer
relations strategy?
3.3.2 Secondary Data

Literature review is done hand in hand with this research as it helps in explaining emerging
results from the interviews or data collection (Dawson, 2002) related to the questions. Therefore
several literature sources on Customer relations and core competence are explored along with
this research, literature sources are from the internet sites, annual reports, books, journals and
articles, magazines, newspapers, case studies related to this research. It is evident that the initial
model projected as per figure 1 accounts for the observed pattern of related work of research as
this one.
3.4 Data Analysis

Data analysis refers to examining, categorizing, verifying and testing the collected data in order
to get meaningful outcome of the research (Yin, 2003). Three strategies for analysis are relying
on the theoretical proposition of the research reflecting the research, this strategy is in common
use as it eases the organization of the entire research and can suggest different alternative
explanation which can be examined, secondly is the setting up a framework in relation with rival
explanation, this is a relevant strategy even in absence of a theoretical proposition, it tries to
explain the existence of other or different outcomes than what was proposed earlier and lastly is
developing case descriptions, this is, not so common strategy and used only as an alternative if
the previously explained strategies are difficult to use for a research (Yin,2003)
The above analysis strategies can use five different techniques to analyze collected data, these
are: pattern matching, explanation building, time series analysis, logic-models and cross-case
synthesis (Yin, 2003), the first four can be used to analyze single or multiple case study while the
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS
last one can only be used for multiple case studies (Ibid.). Pattern matching is suitable in both
descriptive and explanatory researches, it compares an empirical pattern with the proposed or
predicted one (Ibid). Explanation building is mainly relevant to explanatory type of research and
it has a danger of drifting from the original pattern during the explanation process, time series
analysis is suitable to trace change for predicted outcomes over time, logic models stipulates a
chain of complex predicted events over time while cross-case synthesis is used to analyze more
than one case study. This research utilizes pattern matching to describe the relationship between
customer relation strategies and core competence.
This research is founded from both primary and secondary data, a theoretical proposition is
drawn from in-depth literature review and theoretical framework which observed that Customer
relations has a linkage to core competence, therefore primary data were analyzed to describe how
this relationship is by testing the theoretical proposition using both pattern matching and cross-
case synthesis since more than one case studies are involved. Pattern matching as explained
above is a technique normally used when trying to link two patterns, one a theoretical pattern and
the other an observed or empirical pattern resulting from the analysis of collected data
(Trochim,1989)
Writing on qualitative research data analysis, Miles & Huberman [48] explain three stages
involved in pattern matching analysis, these stages were ones used to analyze data of this
research. The stages are data reduction, this means sorting data in order to filter them and
discard irrelevant ones then select ones which are valid and relevant to the study ready for
drawing conclusion; secondly is data display, this is done in an organized way to pave room for
finally drawing of conclusion. Since this is a multiple cases study, cross-case synthesis is used
and data displayed in tables; and finally is drawing of conclusion and verification, this is a stage
of deciding what things mean(Ibid), judging the filtered responses and from them project
observed patterns or perceptions.
Referring to and using the proposed relationship sketch of customer relations strategies and core
competence (figure 1), below is the predicted pattern of relationships which is matched and
tested against observed pattern in the analysis of data and discussion of findings chapter.
• There are specific strategies influenced by Customer relations
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS
• Customer relations influenced Strategies relate and rely on Core Competence to be
successfully executed or accomplished
• Influenced Strategies directly improve Customer Relations and therefore are Core
Competence.

3.4.1 Collecting and processing of Data

As pointed out earlier, this analysis of data follows the Miles and Huberman (1994) techniques
which involve three steps which are; data reduction, data display, conclusion drawing and
verification. The responses from the interviews and question sheets were assessed and analyzed
and included; sorting, transforming, reduction, selection and discarding irrelevant ones and
finally paraphrasing into meaningful statements in relation to the research questions (Miles and
Huberman, 1994) and a list was generated.
Raw data received from some participants were not all suitable to be applied and used and,
therefore, this stage involved re-producing the data in the format useful to this research [19] by
re-structuring statements and sentences received from interviews and question sheets to align
them with the research problem. This was then followed by selecting and actually writing a
within-case analysis (for each individual case) and statements recorded as from each interview
question.
Since this is a multiple cases study, a cross-case analysis was conducted and all data were
summarized under single matrix to form the analysis platform across all cases.
Important to note too is that no interview was conducted with staff at both VODACOM and
AIRTEL Tanzania due to limited timeframe in both companies processing our introductory
letters to conduct research at their work premises and that the manuscript had to be written and
presented within a specified time period. This being the case, data analysis requiring input from
the actual members of staff from the service providers’ understudy is relied heavily upon from
MTN and AIRTEL Zambia respondents.
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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Both interview and survey questions were structured into groups. A group was formed in relation
to the research aspects, i.e. customer relations, customer relation strategies and core competence.
Below are the tables summarizing the grouping which also serves as a description of how data
collection was conducted but as well as an insight to the final analysis.
Table 1: Survey Questions asked to selected customers

Research aspect Question(s) asked
Customer Relations • How can you describe the Level of Customer relations of your service
provider?
Core Competence • What do you think are your service providers’ distinguished
competencies, capabilities and resources in meeting your service needs?
Relationship of Customer
relations and Core
Competence
• Does customer relations of your service provider relate to the company
capabilities? Please briefly explain how
Relationship of Strategies and
Core competence
• How does each of the below reflect or relate to your service provider’s
competencies, capabilities and resources;
Level of Service Quality received
Communication with your provider
Satisfaction (service received meets expectations)
Network coverage (availability)
Retention/Loyalty (remaining an all time subscriber to
this service provider) (CR strategies relation with CC)
• What is your view on how a service provider (please describe a Service
provider [ideal one] of your preference) should relate its competencies,
capabilities and resources with its Customer relations strategy?

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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Table 2: Face to face interview Questions conducted with managers and frontline staff

Research aspect Question(s) asked
Customer Relations • Describe the importance of customer relations to your business in the
competitive market
• State some common or otherwise challenges and difficulties you
encounter in your day today interaction with customers?
Core Competence • What is your company strategic strength?
Relationship of Core
competence and Customer
Relations
• How would you relate your company strategic strength to the overall
customer relations policy with your company

3.5 RESEARCH LIMITATIONS

This research is limited by the following:-
• Limited to one type of industry – the mobile service providers. Also not all service
providers are involved but only two companies in both Tanzania and Zambia leaving
more out of the research. Therefore the results and implication of this research is limited
as such.
• Geographical limitation, in that the research is limited to only companies operating in
Tanzania and Zambia and therefore the outcome from this research does not constitute
same result for other geographical locations.
• Time limitation as this research will have to be completed within a specific timeframe
and this limitation hinders a more comprehensive researched work or more accurate
findings and contributions to knowledge.
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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3.6 ETHICAL CONSIDERATIONS

It’s the aim of this research to be as ethical, we’ll endeavor through this research to treat with
respect all participants. Also preserve all confidentiality and anonymity where necessary as the
aim of this research is only for education purposes. We intend to be honest and open through this
whole exercise of collecting data and during interaction with the participants, our research is
overt and we will make ourselves known, who we are and what we are doing and make known
the aim of the research for our participants to be well informed in advance before seeking
information or replies from them.
3.7 CONTENT VALIDITY AND RELIABILITY

In qualitative research reliability refers to a quality concept in generating understanding for the
conducted research (Stenbacka, 2001) to be credible and that the findings in the research have
consistency, applicability and dependability (Golafshani, 2003). Validity is the trustworthiness of
the research which can be tested and verified (Johnson, 1997) leading to the generalization of the
result. To ensure validity and reliability in this research a search for convergence among diverse
and several sources of information (Creswell & Miller, 2000) has been carried out starting from
theory and literature review where a theoretical pattern was constructed and then compared with
empirical data obtained from four different cases. Data was collected from reliable sources
comprising of company senior managers, frontline staff and a very considered selection of
participants for survey questionnaire who have at least tertiary education to ensure that feedback
received is reliable and reasonable.

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS

CHAPTER FOUR
EMPIRICAL CASES

4.0 MOBILE TELECOMMUNICATION IN TANZANIA AND ZAMBIA

4.1 HISTORY OF MOBILE TELECOMMUNICATION IN TANZANIA

Tanzania’s economic growth rate has been steady and solid at 5% to 8% since year 2000;
however there was a slowdown on the GDP growth due to the 2009 global recession.
Mining and tourism are the main industry sectors and Tanzania has liberalized its economy
encouraging foreign investments and participation, competition of private sectors is highly
embraced as means of advancing the economy. Tanzania licensed the first mobile company in
1994 and from hence more companies have been licensed under the cellular market, with two
fixed line operators (TTCL and Zantel) with eight operation mobile telecommunication service
providers licensed under the Communication regulatory authority (TCRA). There are four major
operators – Vodacom, AIRTEL, TIGO and Zantel. The mobile market broke the 50% penetration
barrier at the end of 2010 and estimated to grow to 57% by end of 2011.
There has been stiff competition and war on price among the companies in 2010 including low
priced services, loyalty programs and other seasonal promotions aimed strategically to gain and
dominate more markets in the mobile sector (source: www.budde.com.au).
Mobile communication services are readily available in urban areas while limited in remote
locations; however there has been deliberate effort to improve availability nationwide.

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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4.2 HISTORY OF MOBILE TELECOMMUNICATION IN ZAMBIA

Zambia’s GDP growth is currently at 6%, the level it has maintained over the past six years. This
could in part be attributed to the steady rise in copper price on the international markets over the
past few years and a registered increase in foreign investment.
Zambia’s population according to the 2010 national census is estimated at close to 13 million.
The telecommunication sector has come a long way, from a state owned and managed era of pre-
independence day in 1964 to 1998 when ZAMCELL now AIRTEL was permitted to enter the
market as the first private mobile service provider. Because of this historical background, the
country’s telecommunications market is dominated by AIRTEL which has a market share of
more than 70% representing a subscriber base of 3.5 million. However, the fastest subscriber
growth is currently seen by the runner-up, MTN. MTN Zambia has kept up the pace and
continue to rapidly expand after acquiring all the shares in Telecel Zambia in 2005. Having
commenced operations in 2006, today MTN has an active client base of 2.05 million subscriber
base from the figure of around 250,000 at the time of buying off telecel. The third competitor in
the mobile market is Cell Z, the mobile division of the national telco, Zamtel. Zamtel has been
performing poorly in the mobile as well as the fixed-line sector, despite monopoly rights in the
latter, including the international gateway. The monopoly on the international gateway and
restrictions on VoIP Internet telephony are set to fall under the new ICT Act, which will make
international calls and borderless international roaming much more attractive. The Act also seeks
to establish a new unified licensing regime which will enable more competition in all market
sectors from existing and new players. With penetration rates in all sectors still below regional
averages, the growth prospects are excellent. A majority stake in Zamtel was sold to LAP Green
of Libya in mid-2010. One of its key assets is a national fibre network that is currently being
rolled out, including connections to neighboring countries which will provide transit links to
international submarine fibre optic cables off the East and West African coasts. However,
alternative domestic fibre is already being rolled out by three other companies, and one of them
has recently completed the country’s first ever connection to an international submarine fibre
optic cable, SAT-3/WASC. Alternative international fibre links will go live in later 2011
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS
reducing the dependency on a single provider, which will, first and foremost, benefit the
broadband sector with cheaper international bandwidth. Mobile data services using GPRS and
EDGE are available but have remained expensive under the current conditions. Third generation
technology rollouts are in progress, including 3.5G HSPA, but the licensing has been delayed
(source: www.budde.com.au)

4.3 PROFILE OF CASE STUDY MOBILE TELECOMMUNICATION SERVICE
PROVIDERS

4.3.1 VODACOM (T) Ltd

VODACOM (T) Ltd was registered to operate and provide mobile services back in 1999 and
actual mobile communication services were started in 2000 after some time of mobilization and
establishment, Vodacom is believed to be the current leading service provider with over 9
million subscribers across the country. Vodacom Tanzania is a subsidiary of Vodacom Group
(Pty) Ltd of South Africa which is also under the umbrella of Vodafone Group of the United
Kingdom (UK). Vodacom Group (Pty) Ltd owns 65% of all Vodacom Tanzania shares and the
remaining 35% is owned by an indigenous, one Mirambo Ltd.
Vodacom Tanzania has grown rapidly since launching its services in August 2000, growing a
customer base of one million subscribers by 2004 and consequently growing to two millions in
2006, this same year saw Vodacom Tanzania being granted three different licenses in the
communication sector which are Network facilities, Network services and Application service
licenses and was authorized to provide a range of communication services, voice and data both
locally and internationally.
Vodacom Tanzania has proven itself as a market leader boasting of a large market share,
provides state of the art technology services and a variety of communication solutions including
remote communication solutions over satellite, banking, international connectivity, etc.
Available technologies and services for individuals or organizations includes GSM (Global
system for Mobile communications), GPRS (General Packet Radio Services), EDGE (Enhanced
Data rates for GSM Evolution) and 3G (Third Generation) with HSDPA (High speed Downlink
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS
Packet Access) in selected regions as well as WiMAX 802.16d (Worldwide interoperability for
Microwave Access) in over 5 major cities in the country. These all enhance Vodacom Tanzania
to providing quality services and hence competitive edge as compared to its competitors in the
market.
Vodacom Tanzania does place itself strategically and has a business division to focus more on
customer needs and expectations in order to provide total communication solutions to customers
that are customer centric, technology driven, cost –effective as well as innovative to create
sustainable value. Vodacom Tanzania has been the market leader in introducing new products
and services for others to follow and imitate and that makes Vodacom Tanzania to continue
innovating and creating of new products and services and hence ensuring that the market lead is
maintained now and the coming future (source:. http://www.vodacom.co.tz)

4.3.2 AIRTEL Tanzania and Zambia

AIRTEL is short reference of Bharti AIRTEL Ltd which is an Indian Telecommunications
company operating in 19 countries from Asia, Africa and Channel Islands. For Africa, AIRTEL
started its operation in 2010 in 16 countries after acquiring ZAIN Africa BV. The African
countries in which AIRTEL operates are Burkina-Faso, Chad, Congo Brazzaville, Congo DRC,
Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Seychelles, Sierra Leone, Tanzania,
Uganda and Zambia. The availability of AIRTEL in these African countries enable customers to
use the same SIM card whenever visiting another country under one network system, this gives
AIRTEL a distinguished advantage and value as compared to other operators.
AIRTEL offers common services which include GPRS, internet, WAP (Wireless Application
Protocol) and MMS (Multimedia Messaging Service), international roaming, and also a range of
mobile services including money transfer, fixed line services, as well as turnkey telecom
solutions for individual and organizations.
AIRTEL is socially responsible and supports the community, for instance, in Tanzania AIRTEL
has established over 680 schools under its ‘ Build our Nation (BON) Project supplying teaching
aids as well, it also offers scholarship for University studies for top 8 boys and girls completing
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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high school. One of the famously known inter-universities competitions offered by AIRTEL
across the continent is called Africa AIRTEL challenge which is a milestone in advertising
AIRTEL services across the continent.
In Zambia, AIRTEL set up a foundation since 2000 for philanthropy aimed at improving
education for rural areas and unprivileged children (source: http://africa.airtel.com)

4.3.3 MTN Zambia

MTN Zambia started its operations and services 6 years ago; it is a subsidiary of MTN Group.
MTN Zambia understands that its growth is contributed by the end user who is the Customer and
therefore aims at fully meeting the needs of its customers by providing products and services that
have benefits and satisfying. MTN Zambia is at the lead in the mobile communication services, it
has the largest number of subscribers, 129 millions in the 21 countries that the MTN Group
operates with Zambia collecting over 2 million subscribers.
MTN Zambia advertises itself as a better mobile service provider because it services enhance
customer life and keeps constantly innovating its products and services and positioning itself at a
point for consumers to choose it as primary service provider, to ensure this, MTN Zambia boasts
of its brand value , personality and essence. MTN Zambia strives and continually innovate its
services through strategic plans on its services and products through strategic business decision
making, interacting with customers. It centers its strategic focus on three main questions: Is it
new? Is it unique? Is it original? And thus ensuring consistence in all its dealings with customers.
MTN Zambia products and services includes prepaid services giving the customer freedom of
choice and control of communication costs, post-paid services at an agreed contract to give
convenience as well as suiting customer requirements, also mobile internet services to access the
world wide web on mobile phones, laptops and Personal computers in office or at home using
the MTN USB modem (source: www.mtnzambia.co.zm )

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS

CHAPTER FIVE
ANALYSIS OF DATA AND DISCUSSION OF FINDINGS

5.0 INTRODUCTION

This chapter presents the analysis of data collected from a combination of techniques including
face to face interviews and open-ended questions which were either presented physically or
through email but tracked by phone calls to ensure responses were received within the timeframe
given. The sample involved carefully chosen participants with at least tertiary level of education
as a way to ensure reasonable and meaningful feedback.
A total of three face to face interviews were conducted at AIRTEL Zambia. These interviews
involved a director of customer services department and two frontline members of staff in the
same department. For MTN Zambia a total of two interviews were conducted, one with customer
services manager and the other with one frontline member of staff. Also a total of five open
ended questions (Appendix 1) were each sent to seven respondents on both networks. Of these
respondents, four from each network provider provided their feedback.
From Tanzania a total of twelve selected users for AIRTEL Tanzania and VODACOM were
consulted and agreed to participate in answering the open ended questions, six users from each
provider, of all, nine fully filled questionnaire sheets were received, five from AIRTEL and four
from VODACOM.
5.1 CROSS-CASE ANALYSIS OF COLLECTED DATA

This is a multiple cases study and therefore cross-case analysis of the responses was conducted
in a single table matrix. The matrix consists of columns and rows; the first column contains the
research questions, and the proceeding columns contain responses received for each question for
all the case studies involved. Please note that the responses were first reduced to meaningful
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS
sentences or statement during the within-case analysis, the general table now serves as a
comparison across all cases.
The case studies are assigned with numbers, thus; - Case I – AIRTEL Tanzania, Case II –
VODACOM Tanzania, Case III – AIRTEL Zambia and Case IV – MTN Zambia. All responses
are summarized as per research aspect group and tabulated in the single table matrix to enable
cross-case analysis of findings as well as also to discover similarities and like patterns within the
statements, themes and sentences and hence assist in developing and projecting the perceptions
of the research to finally drawing specific conclusions (Miles & Michael,1994).
Table 3: Customer relations aspect
Interview Question
• How can you describe the Level of
Customer relations of your service
provider?
• State some common or otherwise
challenges and difficulties you
encounter in your day today
interaction with Customer
• Describe the importance of
customer relations to your
business in the competitive
Market
Case I
*Excellent customer care
*Efficient and customer oriented
*Quick response always
*Easily reachable (high availability
Interview not conducted Interview not conducted
Case II
*Provide excellent customer solutions and
effectively
*Customer service available every time
*Meaningful and quality service is offered
Interview not conducted Interview not conducted
Case III
* It is average though at times there is
congestion online enquiries
* Response to complaint resolution take long
particularly when the problem complex.

*Customer experience requires cultural
transformation and this takes a while to adjust
*Technical support and limitations in their
operations such as system down time
affecting smooth operations of customer
service
*Challenges with human resource since this
kind of work has high employee turnover
*Abuse of toll free lines by some customers
hampers effective service to customers with
genuine complaints

*This company was the first mobile service
provider to implement a fully fledged
customer service department, with the aim of
meeting customer expectations and providing
customer experience
Case IV
* Customer service available every time
*Less congested network therefore response
time is high
*They do not flood our handsets with
unnecessary promos which is a positive
aspect
*Literacy - not all customers are familiar with
technology, meeting the needs of this sector is
costly
*Right human resource skills sets to match
the technology changes
*Abuse and misuse of toll free lines and
thereby inhibiting quality service to genuine
customers
*The toolkit which includes policies,
processes and procedures is aimed at
meeting customer needs and expectations
*The strategy has been to ensure technology,
products & services in tune with staff skills to
help meet the needs of the market

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS

Table 4: Core Competence aspect

Interview Question
• What do you think are your service
providers’ distinguished
competencies, capabilities and
resources in meeting your service
needs?
• What is your company strategic
strength?
Case I *Physical Assets supports wide network
coverage
*Powerful brand
*Superior technical knowledge
*High tech communication systems

Interview not conducted
Case II *State of the art mobile communication
technology
*Wide coverage
*Highly trained and skilled workers
Interview not conducted
Case III *Free airtime such as magic numbers
*Different tariffs enable clients choose those
that meet their lifestyle
* Provide corporate social responsibility to
the community
*Wider coverage in almost all parts of the
county

* Customer service through customer
experience as a differentiation strategy
*Customer experience with a focus to
building customer loyalty as opposed to
making sales

Case IV *Inform their customers on the products that
are on offer
* Provide corporate social responsibility to
the community
* Strong and well known MTN brand
*Relevant and affordable products and
services as well as quality network
*Predictability and consistence in delivering
customer value through the MTN excellence
brand
*In-house leadership training and
development programs for employees

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS

Table 5: Perceived relationship aspect of Core Competence and Customer relations

Interview Question
• Does customer relations of your
service provider relate to the
company capabilities? Please briefly
explain how
• How would you relate your company
strategic strength to the overall
customer relations policy with your
company
Case I *Strongly agree, excellent customer care
match with financial capability and resources
of the company
*Customer care given suggests a sound
knowledge and competencies of workers
*Low cost of network and wide coverage is a
result of enough available resources

Interview not conducted
Case II *Can improve and are capable of offering
low tariffs across other networks
*They’ve got all the resources to more better
their services
*Increase resources in remote areas to ensure
availability of network
*Slow internet services suggesting need for
expansion or update of systems or resources
Interview not conducted
Case III * Yes since they plough back part of their
proceeds to communities such as schools
*They have constructed a new and modern
office complex which is an indicator of the
serious relationship with their local market
*Top level management is involved in the
overall coordination of customer service
department with other departments
*Each dept is given a maximum amount of
time to respond to another dept needs through
internal service level agreements
Case IV * Yes as evidenced by their co-sponsoring the
local football league
*New and modern office premise signal their
commitment to the local customer needs

*Adopted MTN Group strategy toolkit
involving process, policy and procedure on
handling customers
*Customer experience is the focus of the
toolkit with strategies tailored to meet
customer expectations

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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Table 6: Perceived relationship aspect of Core Competence and Customer relation
Strategies

Interview Question
• How does each of the below reflect or relate to
your service provider’s competencies, capabilities
and resources;
Level of Service Quality
received
Communication with your
provider
Satisfaction (service received
meets expectations)
Network coverage (availability)
Retention/Loyalty (remaining
an all time subscriber to this
service provider)
• What is your view on how a service
provider (please describe a Service
provider [ideal one] of your preference)
should relate its competencies,
capabilities and resources with its
Customer relations strategy?
Case I
*Service quality is supported by superior knowledge of
workers, service quality is of high standard and satisfying
*Communication is good from workers with sound
knowledge of business and high level of customer , also
available state of the art communication systems
*Satisfaction – high quality of service and constant
communication supported by available resources keep
customer satisfied.
*Network coverage – widely available through strong
infrastructure and well functioning physical assets
*Superior brand and seasonal promotions and introduction
of new low priced services ensure customer retention

*Deploy it’s competencies, capability and
resources to build a strong and successful customer
relations strategy
*Ensure competencies of its workers as well as
modern and efficient facilities
*Use competencies, capability and resources to
deliver low cost services and capture a large
market share.
* Design and implement service solutions focused
to satisfy the customer
Case II
*Good service quality from professionally trained workers
*Communication is efficient from excellent customer
focused solutions
*Services fairly satisfy as they meet expectations from
strong brand and large market share
*Network coverage needs expansion to remote areas
* Quality service received is able to retain the customers

*Customer focused resources
*Build skilled manpower and avail assets and
resources to efficiently solving all service related
problems
*Provide communication solutions that are
Customer-Centric, technology-driven, cost-
effective, and Innovative and generate sustainable
value.
Case III
*Difficulties at times to make calls successfully due to
network congestion
*Fairly good
*Sometimes meets expectations
*Communication across the network is expensive

*They should utilize their competencies to reduce
on issues such as waiting time to complaint
resolution
*Match up their client base with technology
platforms
*Reduce on irrelevant promo messages to
customers
Case IV
*The network has a reputation of being stable
*Communication across the network is at times a challenge
*Communication messages from the provider is timely and
appropriate

*Capitalize on the market leader weaknesses
through their strong platforms to increase on
market share
*Adopt vigorous promo campaign strategies than
is the case at the moment

Source: Interviews and Survey questions
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS

5.2 DISCUSSION OF FINDINGS

The purpose of this research has been to study the relationship and influences between customer
relations and core competence. The theory chapter provided the framework and has therefore
built a foundation and conceptual fundamentals on which to relate these two important aspects. It
is important to underscore the importance of effective customer relations and how it energies the
company; and that, amongst the benefits is large market share and dominance as the company
will be well situated and can prove an edge over competitors in the market; suffice to mention
that a lot of literature and research has been written on this score. Core competence on the other
hand is key to the success of any company, core competence constitutes competencies which are
developments made by individuals and teams; capabilities which are supporting systems
enhancing the business operations and resources which are inputs to value process (Lionetta,
1977; Ljungquist, U, 2003: 2007). Coming back to the research problem and purpose, apart
from probing questions on existing customer relations and core competence within the business,
there was a been specific questions which required the participants to describe an ideal company
and how it should combine or operate its customer relation strategies with core competence. The
responses on this question played a major role and added value to the interpretation of results as
participants were not only able to answer freely outside the bounds of service providers they
subscribe to but also detailed their perception and desires of how the business should conduct
and operate efficiently utilizing these two items.
I. Company core competence or strategic strength; In responding to company
strategic strength; AIRTEL and MTN Zambia interviewees mentioned customer
experience, building customer loyalty as a differentiation strategy, consistence in the
customer value proposition including stable technology platforms as well as
employee training and development are common responses in the case studies.

II. Strategic strength in relation to the overall customer relations policy of a
company; AIRTEL Zambia discussed top level management involvement, while
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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COMPLETE MBA THESIS
MTN Zambia adopts company group level strategies as effective means of meeting
customer expectations. MTN also did mention top-to-bottom clear message for an
overall coordinated customer relation strategies backed by a strong, available core
competence as effective means of meeting customer expectations.

III. Importance of customer relations to the business; in stating the importance of
customer relations in their respective companies, interviewees at AIRTEL mentioned
having implemented a fully fledged standalone customer services department,
separate from marketing and/or sales functions as is usually the case in most
companies, to specifically handle the challenges faced by customers after a service
has been provided which in itself indicates a higher level of sensitivity to the
customer and that customer relationship matters the most. An MTN interviewee on
the other hand mentioned embedding the MTN toolkit which contains policies,
procedures and processes in their customer relations approach aimed at meeting
customer needs and expectations. MTN also highlighted staff skill sets and
knowledge in company products, services and technology platforms as prerequisites’
to fully meeting the demands of the customer; this in itself is a typical matching of
customer relations with core competence.

IV. Daily challenges and difficulties encountered with customers; asked what they
found as the main challenges and difficulties each experienced in their day today
interactions with their customers, MTN gave low literacy levels among a section of
its customer base in matching up with technological changes, stressing that this in the
long run becomes a cost burden. To get employees with the right skill sets, attitudes
and behaviors that are necessary in providing that unique customer experience is not
easy, implying in-house training programs have to be initiated and conducted to
impart such skills on employees in all customer facing departments of the company.
AIRTEL stressed that customer experience requires a cultural transformation
although this takes awhile to adjust to. Resistance in the acceptance of certain tactics
and practices which involve enhancing employee customer product knowledge was
also mentioned by AIRTEL. Abuse of toll free lines through non services related calls
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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COMPLETE MBA THESIS
which practice blocks otherwise customers with genuine complaints was common
among both MTN and AIRTEL respondents
V. Relationship between a service providers’ competencies, capabilities and
resources with Customer relations strategy; Concerning this view both
VODACOM and AIRTEL Zambia respondents alluded to technology infrastructure;
provide communication solutions that are customer centric and technology driven;
while matching up their client base with these technology platforms. AIRTEL
Tanzania and MTN respondents suggested designing and implementing service
solutions that satisfy the customer and that these solutions should be driven by
vigorous promotion campaign strategies that resonate to as many customers as
possible. All case study respondents place an emphasis on superior quality of service,
effective and efficient communication between customer and the service provider.
Customer satisfaction through meeting their expectations and needs as well as
retention/loyalty programs as being essential elements on the service provider’s
competencies, capabilities and resources. For instance, AIRTEL Tanzania,
VODACOM and MTN respondents mentioned superior brand and seasonal
promotions and introduction of low priced services as ingredients to customer
retention. Some respondents in VODACOM suggested building and investing in
skilled manpower, avail assets and resources to efficiently solving customer service
related challenges. AIRTEL Zambia respondents alluded to deployment of the service
provider’s capabilities and resources including technology platforms to match with
their customer base. Also other respondents implored service providers to use
competencies, capabilities and resources as business strategies to deliver low cost
services with an aim of capturing larger market shares.

VI. Relationship of service providers’ competencies, capabilities and resources, to
the level of service quality received, communication with service provider,
satisfaction (service meets expectation), Network coverage (availability) and
retention/loyalty; AIRTEL Tanzania, VODACOM and MTN respondents mentioned
superior brand and seasonal promotions and introduction of low priced services as
ingredients to customer retention. Also service quality and satisfaction are both
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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supported by superior knowledge and right skill sets of employees involved. All case
study respondents highlighted specific outcomes that communication has on the
company. These outcomes are that communication is good from employees with
sound knowledge on business products and services; communication is efficient from
excellent customer focused solutions, but too, that the communication across these
networks must be efficient and affordable. In answering a particular service provider’
distinguished competencies, capabilities and resources in meeting customer needs;
communication systems and platforms also standout and are dominant across a
number of respondents including both AIRTELs, MTN and VODACOM.
VII. Service provider’ distinguished competencies, capabilities and resources in
meeting customer needs; communication systems and platforms also standout and
are dominant across a number of respondents including AIRTELs, MTN and
VODACOM. On the discussion of customer care provided by each service provider;
AIRTEL Tanzania and VODACOM respondents praised their networks for being
excellent, efficient and quick in their customer care provision emphasizing that
meaningful and quality services are offered. On the other spectrum both MTN and
AIRTEL Zambia respondents mentioned congestion, slow response to complaint
resolution, flooding customers with unnecessary promos as potential barriers to good
customer care. MTN Zambia users describe their service provider as generally a
stable network, no congestion and that the response level to required service is very
high; an interesting remark received from the respondent, which implies that the
communication is smooth, was that, “they do not flood my handset with unnecessary
promotions”.
VIII. Level of Customer care or relationship with service provider; AIRTEL Tanzania
and VODACOM respondents praised their networks for being excellent, efficient and
quick in their customer care provision emphasizing that meaningful and quality
services are offered. On the other hand MTN and AIRTEL Zambia respondents
mention congestion, slow response to complaint resolution, flooding customers with
unnecessary promos as potential barriers to good customer care as already mentioned
elsewhere.

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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The perceived relationship as a result of this analysis is still observed in the conceptual model in
figure 2. A two way relationship linking Customer relation strategies and Core competence is
shown in that figure. Customer relations strategies depend on and will only be successfully
implemented through available core competence and this combination will in turn create an
efficient and successful customer relations base.

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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CHAPTER SIX
CONCLUSION AND IMPLICATIONS

6.0 INTRODUCTION

This chapter examines in summary the whole study from theory and literature review,
methodology, data analysis and discussion of findings and gives conclusion as well as
implications and recommendations. The findings indicate that while a customer relation is a very
important aspect for any business’ success; it can only be achieved by implementing or
deploying specific customer centric strategies complimented by core competence. From the
findings we note also that an efficient service provider is one with available competencies,
capabilities and resources in meeting customer needs and expectations. The availability of these
‘associated concepts’ of core competencies is what makes the company-customer relationship
remain strong.

6.1 CONCLUSION

The purpose of this work has been to research and study customer relations influence on
company core competencies. To achieve this, the focus was first to study Customer relations; its
strategies and Core Competence; and second formulated a theoretical relationship between
Customer relation strategies and Core competence. This research through literature review and
theoretical framework proposed a theoretical conceptual relationship between Customer relations
using customer centric strategies and Core Competence, this theoretical model is as outlined in
figure 1.
The identified customer relation strategies in the research comprised various common items
deployed in day to day business operations. Looking specifically at the individual strategic items;
responses indicate that service quality and satisfaction are both supported by superior knowledge
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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and right skill sets of employees involved in the exchange process; this in other words suggests
that company competencies directly relate with the quality of service offered in satisfying the
customer. Service quality is a differentiation strategy and a source of competitive advantage;
core competence positions this ‘strategy’ to a place where competitors find it difficult to imitate.
Customer care is reinforced by excellent, efficient and quick response to customer needs and
expectations. Network congestion, slow response to complaint resolution, flooding customers
with unnecessary promotions on the other hand is a potential barrier to good customer care.
Customer care through customer responsiveness, retention and satisfaction needs a combination
of skill sets and well trained employees (individuals who can create development-
competencies), efficient programs (capabilities) and resources to fully meet customer
expectations and needs. Customer experience which leads to building customer loyalty, is a
differentiation strategy. Loyalty leads to customer retention and increase in customer share. The
results of customer retention and increase in market share are customer benefits and access to
wider markets. Communication between the service provider and the customer has implications
and outcomes on the business. These outcomes are that communication is good from employees
with sound knowledge of business products and services (competencies). Communication is
efficient from excellent customer focused solutions (capabilities), also communication across
these networks must be affordable and efficient. Communication leads to customer insights
thereby availing the business to more opportunities. The result in this vein is that communication
becomes a core competence because through providing customer insights the customer benefits;
also since it avails a company to more opportunities [this] lead to wider access to markets.
Through the innovation process customer retention and significant business opportunities are
achieved. Customer preferences lead to market leadership with increased customer base and
difficulties in being imitated as the main benefits for the company.
This research has established the conceptual relationship between Customer relations and Core
competence; that for good customer relations base, a business has to employ customer-centric
strategies which must be supported by available efficient core competencies. In other words,
customer–centric strategies need core competence to be implemented successfully. This overall
relationship between the two is formulated and presented in a conceptual model shown in figure
2. The figure indicates that a customer relations strategy directly relates with core competence
Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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such that any strategy will only be successfully executed or implemented with an equal matching
core competence. For example, a successful communication strategy can only be achieved and or
supported by a workforce capable of making development as individuals or as a team with
supportive technological as well available resources as inputs for value addition on a process.
Therefore, successful customer relations should be built on customer strategies which can only
be successfully implemented by equal and matching Core competence.

6.2 IMPLICATIONS AND RECOMMENDATIONS

This research study presents and adds knowledge to the field of strategy in general and in the
areas of Customer relations and Core competence in particular. Companies should continually
strive to improve and maintain a good customer relations base by deploying customer centric
strategies. However, it is true that in some instances strategies deployed have not been as
successful and as such the company never gets to achieve its objectives of having a good
customer relations base, the main reason to this implementation failure is as a result of poor core
competence network. This study, therefore, establishes that, to continually keep market
leadership, any company must maintain a good customer relations base which is built on
strategies that are fully supported by its core competence. It is the obligation, therefore, of any
company business strategist to ensure a correct matching of customer strategies with a strong
core competence network.

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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Websites:
http://africa.airtel.com –retrieved on 31
st
May 2011
http://www.firstglobalselect.com – retrieved on 29
th
May 2011
http://www.mtnzambia.co.zm – retrieved on 29
th
May 2011
http://www.referenceforbusiness.com - – retrieved on 29
th
May 2011
http://allafrica.com - retrieved on 29
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http://www.vodacom.co.tz –retrieved on 31
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http://www.budde.com.au - – retrieved on 27
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http://www.worldbank.com – retrieved 2
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June, 2011

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
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APPENDIX I – Open ended questions

Hi Respondent,
Am on a study trying to explore customer perceived value for mobile telecom services provided –
specifically on the areas of Customer relations and Core competence, I therefore kindly request your
feedback for the below questions and thank you very much for your Time.

Note: to reply to question please click first inside the box and add your text

A. Biographic Data
Male Female

B. Education Level
Primary High School Tertiary

PRIMARY SERVICE PROVIDER (Please indicate with ‘Y’ as appropriate)
Vodacom/MTN Airtel

1. What do you think are your service providers’ distinguished competencies,
capabilities and resources in meeting your service needs?

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
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2. How can you describe the level of customer care or relationship with your service
provider?

3. Does the level of customer relations given by your service provider relate to its
competencies, capabilities and resources? Please briefly point out how is this
relationship

4. How does each of the below reflect or relate to your service provider’s
competencies, capabilities and resources
• Level of Service Quality received
• Communication with your provider
• Satisfaction (service received meets expectations)
• Network coverage (availability)
• Retention/Loyalty (remaining all time a subscriber to this service provider)

5. What is your view on how a service provider (please describe a Service provider
(ideal one) of your preference) should relate its competencies, capabilities and
resources with its Customer relations strategy?

Blekinge Institute of Technology – School Of Management
Master Thesis in Business Administration

Customer Relations Influence and its Relationship with Core Compete: A case of Mobile Communication Service Providers
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????59
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doc_926003560.pdf

Case Study on Customer Relations Influence - Service Providers

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