Background: The Kenyan financial sector has recently been growing at high rate due to the inclusion of individuals who previously were unable access banking services. This has led to a competitive situation where banks and micro finance institutions are searching for ways to manage in this competitive sector. In addition, mobile phone companies are now considered as a competitive threat.

Aim: This study will look into how strategic alliances between banks and mobile phone companies can be used to overcome these challenges with a specific focus on the recent alliance between Equity Bank (Kenya), and Safaricom Ltd. The study will also focus on the management of strategic alliances within different industries.

Method: The analysis of this study is based on qualitative research including the use of interviews with members of both organizations and secondary data which includes written documentation and analysis of previously recorded discussions about the alliance with different members of both organizations.

Results: The authors found strategic alliances can be used as a tool which enables firms to overcome threats from their competitors while gaining additional benefits. In terms of alliance management, the use of separate teams was found to be an effective management tool in cross industry alliances.
Source: Linköping University
Author: Adero, Gloria | Liu, Jun

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