Competitive Strategies Adopted by Mobile Phone Service Providers in Kenya
Abstract
With changing business environment firms are finding it increasingly difficult to find industry environment in which there are good enough conditions that allow a rate of return above the competitive level. Competitive strategies provide a framework for the firms to respond to various changes within the firms operating environment. Firms also develop competitive strategies that enable them to develop strategic initiatives and maintain competitive edge in the market (Grant, 1998). The objective of this study was to determine the competitive strategies adopted by mobile phone service providers in Kenya. A census survey of the descriptive design was used. The Target population comprised all four mobile phone service providers in Kenya. Research was mainly carried out using primary data which was collected by way of a semi-structured questionnaire. Descriptive statistics was used to summarize and organize data in an effective and meaningful way. Narrative summary of the open ended questions was made. The statistical package for social sciences (SPSS) was used to analyze the responses as secured from the five point likert scale. The study found out that the Cost leadership strategies adopted by mobile phone service provider companies were ; research and development, technology, cost cutting, restructuring and automation of processes: the Differentiation strategies adopted were; new product and service development, customer service, branding, provision of product and service information, value addition services, continuous upgrading of services with a view of attracting and retaining customers and engaging highly competent staff, wide range of products and services, intensive staff training, positioning, community involvement and increased advertising : on the focus strategies adopted the respondents reported that their target market focus was several segments of the mobile phone users. The study recommended that in order to deal with competition, the mobile phone service providers in Kenya should ensure that they use the most latest technology, change with consumer needs, maintain quality services, they should also maintain reasonable tariffs, hire qualified staff in companies and ensure that they train them regularly for them to be able to know what customers want from time to time.
Key Words: Cost Leadership, Mobile Phone Service Providers, Technology
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.770
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