Answer to Question #245972 in Management for Nhlaphu

Question

1. When Mxit first launched, they planned to be one of the biggest innovative organisation
in the IM industry yet 10 years later the company shut down its operations. Following
systematic steps on a control process and using practical examples, establish why did Mxit failed to achieve their planned objectives.
(25marks)

Answer 1

Mxit's demise as a commercial service was brought about by fierce competition from multinational services like WhatsApp and Facebook. In South Africa, WhatsApp had more than 10 million users, while Facebook had 13 million. The organizers were well aware of the threat posed by smartphones, but they feared they were completely unprepared for how quickly a low-cost smartphone like the (MTN) Steppa would come, and how quickly it would supplant the feature phone market. The popularity of those low-cost devices, I believe, sent Mxit – which lacked a viable smartphone version – on a downward spiral from which it was impossible to recover, despite the team's best efforts. With mobile technology in practically everyone's hands, it's vital to increase and enhance access to mobile content and services in order to drive social and economic development.