Effects of Focus Strategies on the Financial Performance of Safaricom PLC in Kenya During the COVID-19 Pandemic
Abstract
The COVID-19 pandemic disrupted business operations and intensified the need for telecommunications firms to adopt competitive strategies that respond to changing customer needs. This study examined the effect of focus strategy on the financial performance of Safaricom PLC in Kenya during the COVID-19 pandemic. Guided by Porter’s Five Forces theory, the study employed a cross-sectional descriptive survey design. The target population comprised 650 management employees at Safaricom PLC’s head office in Nairobi. A sample of 248 respondents was selected through simple random sampling, of whom 200 completed the questionnaire. Primary data were collected electronically using a structured five-point Likert-scale questionnaire, an approach that supported safe data collection during COVID-19 restrictions. The data were analyzed using descriptive statistics, Pearson correlation, simple linear regression, and analysis of variance (ANOVA). The findings showed a significant positive relationship between focus strategy and financial performance (r = .423, p < .001). The regression model was statistically significant (F(1, 198) = 43.109, p < .001) and explained 17.9% of the variance in financial performance (R² = .179). Focus strategy was a significant positive predictor of financial performance (B = .618, t(198) = 6.566, p < .001). The study concludes that a well-executed focus strategy can enhance financial performance through customer-oriented products, technological integration, and strategic market segmentation. It recommends continuous market monitoring and alignment of strategies with evolving customer needs.
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