IMPACT OF COMPETITIVE STRATEGY ON THE PERFORMANCE OF TELECOMMUNICATION FIRMS IN KENYA
Abstract
Competitive advantage is the implementation of a unique strategy that creates value (Barney, 1991). It improves a firm’s effectiveness and efficiency and so increases profit (Wernerfelt, 1984). Competitive advantage is attained through either an internal or external change in the market (Grant, 2008). The change in competitive position is influenced by the magnitude of the change and the resources, capabilities or strategic positioning of a firm. This will in the long run lead to particular firms gaining sustainable competitive advantage hence gaining superior performance over its rivals. This study seeks to investigate the impact of competitive strategies on the performance of telecommunication firms in Kenya. The study was guided by the following objectives, to establish the effects of cost leadership on the of telecommunication firms in Kenya, to determine how differentiation affect the performance of telecommunication firms in Kenya, to assess the extent to which market focus affects the performance of telecommunication firms in Kenya. The study was conducted at telecommunication firm’s headquarters in Nairobi with targeted 445 respondents. The Respondents comprised of top department managers and board of Directors these firms. Stratified random sampling was used to determine the sample size from various telecommunication sectors. Data was collected using a semi-structured questionnaire administered to the various respondents. Once collected the questionnaire was edited for completeness before being entered into the Statistical Package for Social Sciences Computer Package for Analysis. Both descriptive and inferential statistics were used. After, the analysis the data was presented through the use of various presentation tools such as graphs pie charts and tables. Overall, the study established influence of competitive strategy on the performance of telecommunication firms in Kenya. Specifically, the study established that cost leadership strategy, differentiation strategy and focus strategy made the most positive contribution, among the independent variables investigated, to performance of telecommunications firms in Kenya. The study recommended that telecommunications firms should: embrace leadership strategy, differentiation strategy and focus strategy .The study proposed that a similar study be done in other industries to have an understanding, views and approaches pursued by these economic vehicles which are expected to create more employment for the unemployed Kenyans.
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.749
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