EFFECT OF STRATEGIC POSITIONING ON THE FIRMS PERFORMANCE IN THE TELECOMMUNICATIONS FIRMS IN KENYA: A CASE OF SAFARICOM LIMITED
Abstract
Strategic positioning is considered a critical requirement for the growth and profitability in the telecommunication industry. In modern competitive industry, Strategic positioning has a considerable impact on corporate performance leading to an improved market position that conveys competitive advantage and superior performance. Firms in the mobile telecommunication industry in Kenya have been operating in increasingly competitive, highly regulated and dynamic market and therefore have to formulate strategies to ensure their survival. The telecommunication industry environment has of late been affected adversely by the changing operating environment that has seen one of the four operators (YU mobile) quit the market after making huge losses and the remaining two ( Airtel and Telkom) are trying to rebrand and make a strategic come back. Interestingly, while Safaricom is making the highest profits in East and Central Africa, Airtel, Telkom (Telkom Kenya) have been struggling a fact that has led to the management of both Telkom and Airtel consider leaving the Kenyan market. This study sought to find out the impact of strategic positioning on the performance of mobile telecommunication firms in Kenya, considering Firm’s marketing, Research and development, Multiple Products and Resource availability as the measurement items. The study considered descriptive research design using a census approach. The target population of this study comprised of the management staffs working in the marketing and research & development departments at the headquarters of Safaricom limited in Kenya, the sampling frame consisted of Safaricom’s top, middle and operational managers. Data was analyzed using the Statistical package for Social sciences (SPSS) version 18 and presented in graphs, tables and charts. The study established that marketing, research and development, resource availability and multiple products had a positive influence on the organizational performance in the telecommunication industry in Kenya.
Key Words: Organization’s marketing, Research and development, Resource Availability, Multiple Products, Mobile Telecommunication Firms
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.671
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