Situational forces in the BDS market and BDS providers’ strategic responses : empirical evidence from Kenya

Abstract

The paper presents situational analysis of the BDS market in Kenya showing how BDS Providers (BDSPs) respond in each situational context. The study was done through the use of grounded theory on eleven BDSPs, four small-scale entrepreneurs and two BDS facilitators in Kenya over twelve months between May 2008 and August 2010. The study established that BDSPs operate under weak regulatory framework which encourages unfair competition alongside donor agencies some of which continue to give free and/or subsidized services. BDSPs respond to the situational contexts in their environments using client, product, price, focus, diversification, and simultaneous competition and collaboration strategies.