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  • THE IMPACT OF COMPETITION ON CUSTOMER SERVICES IN THE

    MOBILE PHONE INDUSTRY OF GHANA.

    A CASE STUDY OF MOBILE PHONE USERS AND OPERATORS IN THE

    KUMASI METROPOLIS.

    BY:

    IMAM SA-EED AHMED TIJAAN

    BA. Social Sciences (French/Sociology)

    A THESIS PRESENTED TO THE INSTITUTE OF DISTANCE LEARNING,

    KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

    (KNUST) IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE

    AWARD OF COMMONWEALTH EXECUTIVE MASTERS IN BUSINESS

    ADMINISTRATION.

    APRIL, 2011

  • ii

    DECLARATION I hereby declare that this submission is my own work towards the Commonwealth

    Executive Masters in Business Administration and that, to the best of my knowledge, it

    contains no material previously published by another person nor material which has been

    accepted for the award of any other degree of the University, except where due

    acknowledgement has been made in the text.

    Imam Sa-eed Ahmed Tijaan ............................. ............................ Student ID PG 2076608 Signature Date Certified by : ............................... ......................... Mr. Kwabena Obiri Yeboah Signature Date ( Supervisor ) Certified by: ............................. ......................... Professor I. K. Dontwi Signature Date (Dean Institute of Distance Learning)

  • iii

    DEDICATION

    To my lovely and caring wife Aisha Ahmed and my children Hosni Tuurosong Ahmed,

    Haara Tamba Ahmed and Ha-alis Nuntaa Ahmed.

  • iv

    ACKNOWLEDGEMENT

    My sincere gratitude goes to the Almighty Allah for the good health, wisdom and

    guidance granted me to undertake this study successfully

    My special gratitude also goes to Mr. Obiri Yeboah of KNUST School of Business

    (KSB) for taking time out of his busy schudule to guide me to udertake this project. May

    the Almighty Allah richly bless him.

    I would want to thank Messrs Emmanuel Narh, Alex Nyanteh, Amos Nyaning, Adams

    Goni and Joseph Allotey of MTN, Expresso, Airtel, Vodafone and Tigo respectively for

    assisting in the collection of data from the various mobile phone companies.

    Finally, I appreciate the invaluable efforts of Mr. Owusu Johnson of the Ghana Audit

    Service, Messrs Jabuni Iddris and Kenneth Abdul Karim as well as Miss Asana Hassan

    Baburonon for their diverse contributions towards the success of this work. May God

    richly bless you all.

  • v

    Abstract

    Global system for mobile communication (GSM) which has become the digital cellular

    technology of choice, has the fastest growth rate and represents the largest segment

    within mobile communication in Ghana. This phenomenon has led to intense

    competition among the five telecom giants on the Ghanaian market. The objective of this

    study was to estalish the competitiveness of the mobile phone industry in Ghana and how

    their competitive behaviuor affect customer service. In carrying out this research, a case

    study of mobile phone operators and users in the Kumasi metropolis was used . The

    major instrument used for collection of data were questionnaires along side interview and

    personnal observation. Questinnaires were distributed to the five mobile phone operators

    and users of these mobile phone services in the Kumasi Metropolis . Data collected were

    analysed using SPSS and Microsoft Excel. Descriptive statistics were also used to

    summarise the information obtained from the analysis made. Findings from the study

    revealed that competition plays a significant role in customer services and customer

    satisfaction. Thus,in a competitive environment, the bargaining power of consumers is

    very high because of the low switching cost in the industry and there are attractive

    substitutes available to the buyer. Again, competition delivers innovation and benefits to

    consumers through lower prices, increased consumer choice and quality service delivery.

    Recommendations were made for policy considerations by both the mobile phone

    operators and the regulatory body such as the government and the National

    Communication Authority (NCA ).

  • vi

    TABLE OF CONTENT

    CHAPTER PAGE

    Title Page i

    Declaration ii

    Dedication iii

    Acknowledgement iv

    Abstract v

    Table of Content vii

    List of Tables x

    List of Figures (Charts) xi

    CHAPTER ONE: GENERAL INTRODUCTION 1

    1.0 Background of the Study 1

    1.1 Problem Statement 4

    1.2 Objectives of the Study 4

    1.3 Research Questions 5

    1.4 Significance of the Study 5

    1.5 Scope of Study 6

    1.6 Limitations of the Study 6

    1.7 Methodology 7

    1.8 Organisation of the Study 7

  • vii

    CHAPTER TWO: LITERATURE REVIEW 9

    2.0 Introduction 9

    2.1 Definition of Competition 14

    2.2 Nature of Competition in the Telecommunications Industry 16

    2.3 Nature of Competition in the Ghanaian Telecommunications Industry 17

    2.4 Strategies for Competition 18

    2.5 Effects of Competition 23

    2.6 Customer Service 27

    2.7 Customer Sevice in the Telecommunications Industry 31

    2.8 Impact of Competition on Customer Services 33

    2.9 Why Improve upon Customer Service 36

    CHAPTER THREE : METHODOLOGY 40

    3.0 Introduction 40

    3.1 Research Design 41

    3.2 Population 41

    3.3 Sample and Sampling Techniques 42

    3.4 Data Collection Techniques 45

    3.5 Data Analysis 46

    CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 50

    4.0 Introduction 50

    4.1 Demographic C