Essay
MNP3703 ASSIGNMENT 5 SEMESTER 2 2023
- Institution
- University Of South Africa (Unisa)
MNP3703 ASSIGNMENT 5 SEMESTER 2 2023
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Question 1 (2)
Eskom has been plagued by a series of operational and financial challenges,
leading to frequent power outages and load shedding in the country. External
factors, such as technological changes may affect relationships between
buyers and suppliers. Relate how technological changes affected the
relationship between Eskom and MTN.
Technological changes affecting the relationship between Eskom and MTN.
Technological changes can significantly impact the relationship between buyers and
suppliers, as they often necessitate adjustments in how business is conducted. In the
case of Eskom and MTN, here's how technological changes could affect their
relationship:
Eskom is a South African electricity public utility, while MTN is a major mobile network
operator in the region. Eskom supplies electricity to MTN, which is essential for its
operations.
Impact of Technological Changes:
Energy Efficiency: Technological advancements in energy-efficient equipment and
infrastructure can lead to decreased electricity consumption by MTN. This could
reduce the volume of electricity required from Eskom, potentially affecting the terms of
their contract. MTN may be able to negotiate for more favorable pricing due to its
reduced energy demands.
Smart Grid Integration: Eskom might invest in smart grid technologies that provide
real-time data on electricity consumption. MTN could use this data to optimize its
energy usage, leading to cost savings and more efficient operations. This data sharing
could strengthen the partnership and lead to more collaborative decision-making.
Renewable Energy: The adoption of renewable energy sources by either party could
alter the dynamics of their relationship. If Eskom incorporates more renewable energy,
it might offer MTN environmentally friendly power options. However, this shift could
also impact pricing and contract terms.
Technological Dependencies: MTN's reliance on electricity to power its network
infrastructure could make it vulnerable to power outages. Eskom's ability to maintain
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