STRATEGIC FACTORS ADOPTED BY TOYOTA MOTOR CORPORATION TO GAINING COMPETITIVE ADVANTAGE IN KENYA: A CASE OF TOYOTA MOTOR DEALERS IN MOMBASA COUNTY
Abstract
The study determined strategic factors adopted by Toyota Motor Corporation to gaining competitive advantage in Kenya. The researchers sought to investigate the impact of product distinctiveness and risk taking on attaining a competitive edge in Kenya. RBV theory and Schumpeter's Innovation Theory were utilised in the study. The research design employed was a descriptive survey. The participants in the study were 10 long-standing vehicle dealerships in Mombasa CBD, each with 90 sales reps. 45 sales reps were surveyed as part of the study. The study used stratified random sampling. The questionnaire was the study's principal means of gathering data. The study relied on secondary data gleaned from Toyota's website, newsletters, and the websites and newsletters of vehicle dealers, all of which are available in hardcopy and electronic form. An SPSS version 23 program was used to generate and evaluate the acquired data, which included descriptive statistics such as frequencies, means and standard deviations. The findings were given in the form of frequency, percentages, tables, bar graphs, and pie graphs. The respondents gave their agreement and the researcher agreed with them on how the data would be used and how the results would be published and distributed. The study indicated that Toyota Motor Corporation's strategic elements have a positive significant link with achieving competitive advantage in Kenya. According to the findings of the study, Toyota's innovativeness can be ascribed to the company's willingness to participate in and foster the development of new ideas and creative processes that may lead to the creation of new market opportunities. Toyota's product differentiation strategy, which includes designing and manufacturing vehicles of superior quality and design, may allow the corporation to gain a competitive advantage. As a result, Toyota has been able to establish a strong brand image that, when potential customers see it, conjures up visions of high-quality, long-lasting automobiles. The company is able to preserve its position as a market leader by developing a diverse range of automobiles for a variety of market segments and price points.
Key Words: Product Differentiation, Risk Taking, Proactiveness, and Innovativeness
CITATION: Tarmohamed, S. S., Mwenda, P., & Muli, S. (2022). Strategic factors adopted by Toyota Motor Corporation to gaining competitive advantage in Kenya: A case of Toyota Motor dealers in Mombasa County. The Strategic Journal of Business & Change Management, 9 (1), 765 – 781.
Full Text:
PDFReferences
Allen, S; & Helms, M. (2014). Linking strategic practices and organizational performance to Porter's generic approaches. Business Process Management Journal Vol.:12 No: pp: 433-454.Emerald Group Publishing Limited
Alvord,, F. O., Brown. & Letts, I. (2009). Reinventing the Wheel? African Cooperatives in a Liberalized Economic Environment, Annals of Public and Cooperative Economics, 80(3), 361-392.
Bharathwaj, M. M. (2017). Quality Management Practices and Their Impact on Organizational Performance, and Customer Behavior. European Journal of Economics, Finance and Administrative Sciences, Issue 34.
Blanchflower, D.G., Oswald, A.J. and Stutzer, A. (2011), “Latent entrepreneurship across nations”, European Economic Review, Vol. 45 Nos 4/6, pp. 680-691
Callaghan (2009), Strategic Responses Adopted by Kenyan Insurance Companies, Unpublished MBA project, School of Business, University of Nairobi.
Calof, P, & and Wright, J. (2016). Sustainable competitive advantage in service industries: a conceptual model and research propositions. Journal of Marketing, 5 (12), 83-99.
Ebrahim, N.A. (2013), “Virtual R&D teams in small and medium enterprises: a literature review”, Scientific Research and Essays, Vol. 4 No. 13, pp. 1575-1590.
Fouka, G., & Mantzorou, M. (2016). What are the major ethical issues in conducting research? Is there a conflictin work ethics. Journal of Nursing Research, 44(1), 11–15.
Geneva. (2017). Understanding competitive advantage in retail financial services. The International Journal of Bank Marketing. 15 (3), 73-82.
Hahn, W. & Powers, T (2004). Critical competitive methods, generic strategies, and firm performance. The international journal of Bank Marketing. vol.22, No.1 22, pp 43-64.
Hahn, W. & Powers. T.L. (2018). Strategic plan quality, implementation capability, and firm performance. Academy of Strategic Management Journal, 9(1), 63-81.
Helm D. T. (2007) Co- operative management in developing Countries. Nairobi: Kenpak colors printers’ ltd
Henard, D. H., & Szymanski, D. M. (2013). Why Some New Products Are More Successful Than Others. Journal of Marketing Research, 38(3), 362-375.
Hittet Y.E., Zaralis, G., & Lioukas, S. (2011). Strategy and industry effects on profitability: evidence from Greece. Strategic Management Journal, Vol. 25 No.2, pp.139
ImaI, T. C. (2017). Competitive advantage: logical and philosophical considerations. Strategic Management Journal, 22(9), 875-888.
Johnson, G., Whittington R. & Scholes, K. (2011) Exploring Strategy Text and Cases 9th edition. Harlow, England: Pearson Education Ltd
Johnson, M. Christensen, C. & Kagermann, H. (2008) Reinventing your business model Harvard Business Review, Volume: 86 Issue: 12; pp.50-59 [
Jussila, I., Byrne, N. &Tuominen, H. (2017) Affective Commitment in Co-operative Organizations: What Makes Members Want to Stay? International Business Research; Vol. 5 Issue 10, p1-10
Karanja P. W. (2002) Competitive strategies of Real Estate firms: The perspective of Porter’s competitive Advantage. Unpublished MBA Thesis, University Of Nairobi.
Kombo, D. K. (2015). Project and Thesis Writing, An Introduction. Nairobi, Kenya: Paulines Publication Africa. doi: 10.1007/s11162-005-8150-9.
Koufteros, O. (2018).UK vineyards sector case study: analysis of retail activities using exemplar strategic marketing tools. British Food Journal, 10 (9), 63-74.
Liker, J.K., Meir, H. (2018). The Center for Quality People and Organizations (2018) Toyota Culture: The Heart and Soul of the Toyota Way, McGraw-Hill, New York.
Livvarcin, O. (2007)."An Exploratory Study on Strategy Direction And Strategy Magnitude in Organizations: The Strategy Vector Model", PhD Thesis Dissertation, Yeditepe University, Turkey.
Mahmood , m and Hafani. H (2013) Strategic Responses by firms facing changed competitive conditions – East Africa Breweries ltd. Unpublished MBA project, School of Business, University of Nairobi
Makori, J., Munene, C. &Muturi, W. (2013) The Challenges Facing Deposit-Taking Savings and Credit Cooperative Societies’ Regulatory Compliance in Kenya: A Case of the Gusii Region; Interdisciplinary Journal of Contemporary Research in Business, Ijcrb.Webs.Com, Vol. 4, No 12, 1013-1081
Mazzarol, T., Mamouni L. &Reboud, S. (2011) Co-operative Enterprise: A Unique Business Model?, paper submitted for the Australia and New Zealand Academy of Management (ANZAM) Annual Conference, Wellington 7-9 December.
Miser, M. (2019). Competitive Advantage Achievement through Innovation and Knowledge. Journal of Competitiveness, 5(1), 82-93.
Mugenda, O. A. (2013). Research Methods: Quantitative and Qualitative approaches. Nairobi: Acts Press.
Mugenda, O. A. (2016). Research methods: quantitative and qualitative approaches . Nairobi: Acts Press.
Murage, S. W. (2001) Competitive strategies adopted by members of the Kenya Independent Petroleum Dealers Association. Unpublished MBA Thesis, University Of Nairobi
Ogula, P. (2015). Research Methods. Nairobi: CUEA Publications.
Orodho, J. (2003). Essentials of Educational and Social Sciences Research Method. Nairobi: Masola Publishers.
Peteraf,, J. (2018). People-Centred Businesses: Co-operatives, Mutuals and the Idea of Membership. London: Palgrave Macmillan.
Seventy, D. (2018). Competitive intelligence programmes for SMEs in France: Evidence of changing attitudes. Journal of Strategic Marketing, 18(7), 523-536.
Shinny, F. (2018). Analyzing the impact of competitive intelligence on innovation at scientific research centers In Isfahan science and technology town. Interdisciplinary Journal of Contemporary Research in Business, 3(5), 940-948.
Swedberg (J.D. (2008). Strategic Management and Business Policy, 11th edition, New Jersey: Prentice Hall.
Tanev, S, & Bailetti, T. (2016). Competitive intelligence information and innovation in small Canadian firms. European Journal of Marketing, 42(7-8), 786-803. doi: 10.1108/03090560810877150
Taney E., &Bailetti I (2008) Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases 17th Edition Irwin McGraw-Hill, New York, NY
Tavakol, M., & Dennick, R. (2016). Making Sense of Cronbach’s Alpha. International journal of Medical Education, 2, 53-55.
Toyota Tsusho Africa Kawaraban (2019). A journal on competitive advantage in the automotive industry, 12, pp 32-43.
Zahra, S. A., & Nielsen, A. P. (2017). Sources of capabilities, integration and technology commercialization. Strategic Management Journal, 23(5), 377-398.
Zinbarg R. E., Yovel I., Revelle W., & McDonald R. (2015). Estimating generalizability to a latent variable common to all of a scale's indicators: a comparison of estimators. Appl. Psychol. Meas,30(3), 121–144.DOI: 10.1177/0146621605278814
DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2220
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.