External Environment - Research Proposal for Viusasa App in Kenya

This research proposal aims to generate a comprehensive understanding of the factors that contribute and shape the usage of online apps such as ‘Viusasa’, Kenya. It undertakes a detailed analysis of the external as well as internal business environment.

Running head: EXTERNAL ENVIRONMENT
External Environment
Name of the Student-
Name of the University-
Author note-

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Executive Summary
This research proposal aims to generate a comprehensive understanding of the factors that
contribute and shape the usage of online apps such as ‘Viusasa’, Kenya. This research report
undertakes a detailed analysis of the external as well as internal business environment. For the
analysis of the external environment, the PESTLE method is used. It is found that the myriad
political, social and technological factors affect the proper functioning and usage of the app. The
SWOT analysis revealed that the strength is that it is the only app providing infotainment in
Kenya. The succeeding sections also endeavor to plunge into an in-depth and comprehensive
analysis. The research proposal propounds certain solutions and recommends ways to increase
the customer base and to increase the usage of the app.

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Table of Contents
Introduction......................................................................................................................................4
Company Overview.....................................................................................................................4
External Environment..................................................................................................................4
Political........................................................................................................................................5
Economic.....................................................................................................................................5
Social...........................................................................................................................................6
Technological..............................................................................................................................6
Legal............................................................................................................................................6
Environmental..............................................................................................................................6
References........................................................................................................................................8

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Introduction
Aiming to understand and gauge the various factors that inhibits the growth of ‘Viusasa’
or ‘Video on Demand Platform’ in Kenya, this research proposal will endeavor to plunge into a
detailed discussion of the myriad aspects that need to be adopted to accentuate the usage. The
following paragraphs will endeavor to argue for the fact that it is important to adopt necessary
measures for the growth of the usage of the app. The following paragraphs will also elaborate
upon the various external as well as internal factors that influence the functioning of the local
app. In addition to this, the following paragraphs will endeavor to present a comprehensive
analysis of the above-mentioned ideas and concepts. The research proposal will take into
consideration the various solutions and recommendations.
Company Overview
The local ‘Video on Demand’ platform of Viusasa is centered in Kenya. It promises to
provide quality forms of entertainment and information for the local viewers (Play.google.com,
2019). It also promises to cater to the innumerable needs of the viewers, ranging from sports
news to celeb gossips (Play.google.com, 2019).A closer look at the various nuances of the local
app will reveal that the app strives to generate and provide wholesome entertainment for the
viewers.
i)
External Environment
It has to be accepted that for business to function in a competitive market environment, it
is essential to gauge and understand the various nuances and conflicts vested in the external
environment. Recent studies are emblematic of the fact that understanding the external

4EXTERNAL ENVIRONMENT
environment and the related threats is intrinsic for the progress of business enterprises (Spieth,
Schneckenberg&Ricart, 2014). In order to comprehend the external business environment, the
model related to PESTLE can be employed. The five constituent factors of PESTLE serves in the
interpretation of the important areas.
In the given scenario of Viusasa, Kenya, it can be accepted that the Local ‘Video on
Demand’, faces the external challenges as well as threats. A closer look at the PESTLE’s forces
will unearth crucial ideas. Recent studies reveal that PESTLE consists of the factors of Political,
Economic, Social, Technological, Legal as well as Environmental (Ho, 2014). In the given
scenario, it is seen that the local app is affected by these arenas.
Political
The prevalent political scenario in any country is intrinsically connected to the smooth
functioning and success of any business organization (Saeed, Yousafzai&Engelen, 2014).
ForViusasa to function in a proper manner, it is important for the prevalent political scenario to
coincide with the liberal thoughts of the app builders. In the above-mentioned case of Viusasa,
Kenya, it is found that various political experts mention that the present government is broke and
in need ofhelp (Tuko.co.ke - Kenya news, 2019). Thus, it can be mentioned that the prevalent
political scenario can have a direct impact on the financial performance, which in turn, can affect
the various prospects related to future endeavors in Kenya. Needless to say, this can act as a
threat for ‘Viusasa’ to function in a smooth and sustainable manner. Further, without proper
political support, it is not possible to garner the attention of the customers.

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Economic
Studies also justify the ideology that the prevalent economic state in a country also serves
to determine the performance of the innumerable business enterprises. Unless the economic
scenario in a given country serves to accentuate the growth of business enterprises, businesses
cannot strive to prosper in the highly competitive environment. In order to enable Viusasa to
grow customer usage of the app, it is essential for the government to provide appropriate
financial support. A closer look at the economic scenario at Kenya will unravel that while the
country had suffered from economic loss during the recession, it had recovered to achieve a
stable economic environment (World Bank, 2019). Therefore, it can be mentioned that this can
act as an opportunity for ‘Viusasa’ to reap the macro-economic benefits to garner the attention of
the viewers and consumers.
Social
A closer look at the social scenario will reveal that many citizens in Kenya cannot access
smartphones. This can act as a challenge for ‘Viusasa’ to expand its reach upon the customers.
Technological
It is seen that the technological scenario in Kenya is reflective of the high costs that are
incurred on the usage of internet (The Star, Kenya, 2019). This had distracted Kenyans from
using the internet, which in turn act as a threat.
Legal
It is seen that the Kenyian government had adopted measures to ease the legal process of
conducting business, be it online or offline (State Law Office and Department of Justice, 2019).
This can act as an opportunity for ‘Viusasa’ to reap the advantages of the flexible norms.

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Environmental
It is seen that ‘Viusasa’ needs to gauge the prevalent environmental.
ii)
A closer look at the prevalent scenario can depict that there are chances of the entry of
new entrants. However, the existing challenges that exist point towards the idea that the unstable
political environment and the lack of enough customers of internet and technological means can
act as poignant challenges for the prospective entrants.
It is also seen that the new entrants in the business of providing infotainment can exhibit
the strength of heightened knowledge of the various challenges and ways to mitigate them.
However, they might also suffer the challenge of gaining customer support.
iii)
The consumer behavior in Kenya will reveal that digital revolution had changed
consumer behavior (Wanjiru&Njeru, 2014). They expect proper and useful service from the
various business organizations. The needs of the consumers in Kenya are dependent on the factor
of delivery of speedy service. This attribute is rampant in the aspect of choosing services in
businesses such as tourism, hotel and others.
‘Viusasa’ can hope to increase the viewers and customer base by the adoption of
measures such as generating comprehensive knowledge about the types of information provided
in the app. Customers might be attracted due to the content of infotainment.

7EXTERNAL ENVIRONMENT
References
Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), 6478-6492.
Play.google.com. (2019). Retrieved from https://play.google.com/store/apps/details?
id=com.viusasa&hl=en_IN
Saeed, S., Yousafzai, S. Y., &Engelen, A. (2014). On cultural and macroeconomic contingencies
of the entrepreneurial orientation–performance relationship. Entrepreneurship Theory
and Practice, 38(2), 255-290.
Spieth, P., Schneckenberg, D., &Ricart, J. E. (2014). Business model innovation–state of the art
and future challenges for the field. R&d Management, 44(3), 237-247.
State Law Office and Department of Justice. (2019). Reforms for Ease of Doing Business in
Kenya. Retrieved from http://www.statelaw.go.ke/reforms-for-ease-of-doing-business-in-
kenya/
The Star, Kenya. (2019). High data cost, insecurity shun Kenyans from internet use. Retrieved
from https://www.the-star.co.ke/news/2017/08/07/high-data-cost-insecurity-shun-
kenyans-from-internet-use_c1611352
Tuko.co.ke - Kenya news. (2019). Kenya Political BREAKING NEWS Today | Daily Updates |
TUKO. Retrieved from https://www.tuko.co.ke/politics/
Wanjiru, K., &Njeru, A. (2014). Impact of strategic response to change on financial performance
of commercial bank in Kenya. International Journal of Social Sciences and
Entrepreneurship, 1(13), 162-184.

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World Bank. (2019). Overview. Retrieved from
https://www.worldbank.org/en/country/kenya/overview