An analysis of the relationship between competitive strategies and organizational performance : a case of mobile telecommunication companies in Kenya
The main aim of the study was to examine the relationship between competitive strategies and organizational performance among firms in the mobile telecommunications industry in Kenya. The study identified the competitive strategies adopted by firms in the mobile telecommunication industry in Kenya, assessed the different levels of implementation of competitive strategies within the firms and lastly examined the relationship between competitive strategies and their performance, This study employed a descriptive survey design and collected data from 63 respondents out of the sample size of72 respondents selected purposively. The study revealed that in the telecommunication industry competition is high and product differentiation and low cost leadership are the most commonly used strategies. Other strategies include strategic alliance strategies and specific market focus strategies. The study concluded that the strategies adopted improved the overall organization performance and some of the key performance indicators that were influenced are: Sales and market share, customer retention, profitability and product developmentlinnovation. The study recommends that organizations should adopt strategies that allow them to achieve competitive advantage over others. Organizations that chose to adopt cost leadership strategy should focus on gaining competitive advantage by having the lowest cost in the industry. In order to achieve a low-cost advantage, an organization must have a low-cost leadership strategy, low-cost manufacturing, and a workforce committed to the low-cost strategy. Also the study recommends that when using product differentiation strategy, a company should focus its efforts on providing a unique product or service to enhance customer loyalty.