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Product cover image for Telkom South Africa: Business Model Innovation in a Changing Industry

Telkom South Africa: Business Model Innovation in a Changing Industry

Albert Wocke, Morris Mthombeni

Product #:W25729
Supplier:Ivey/GIBS
Discipline:General Management, Information Systems
Setting:South Africa, 2021
Details:Case (PDF) • 17 pages • 2022-02-25

Subjects:

Technology and analyticsInformation systemsManagement

Industries:

Information technology and telecom sector

Geography:

AfricaSouth Africa
Your Price:$10.54

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In May 2021, the chief executive officer of Telkom SA SOC Limited (Telkom) in South Africa was facing a dilemma. Fifth generation (5G) technology was about to be introduced to the country’s communications industry. While Telkom had fared well during the COVID-19 global pandemic, even managing to gain market share from its much larger competitors, the anticipated release of additional coverage spectrum for the new 5G technology was going to put pressure on Telkom’s finances and business model. The chief executive officer, appointed in 2013, had helped transform the company’s business model from a struggling state-owned enterprise with a monopoly and unhappy customers to a thriving business in open competition with complementary strategic business units. However, with continuous evolution in the industry, Telkom was forced to innovate again and possibly reposition its strategic business units.

Learning Objectives

This case is suitable for graduate- and postgraduate-level courses that discuss strategy, leadership, and business turnaround. The case can also be taught in courses that cover topics on general management, decision-making, or industry analysis, with a particular focus on the information and telecommunications industry. The case will help students understand how business models develop and mature through different stages. It provides insight into the decision-making process related to business model development and the impact of industry changes on the robustness of a business model. It also helps identify the continuous need for business model innovation. After working through the case and assignment questions, students will be able to
  • describe the business model development process;
  • analyze the stages of business model maturity; and
  • make recommendations for business model innovation.
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Case Study: Telkom South Africa: Business Model Innovation in a Changing Industry (English version) | Ivey Publishing