Influence of strategic responses on the market share of national TV stations after the digital migration switchover- a case of national television stations in Nairobi County

Abstract

The aim of this dissertation was to study the influence of strategic responses on market share for national television stations in Nairobi County. The scope was limited to the period after the digital migration switchover, that is, after March 2015. And this was because of the five leading national television stations namely: Citizen TV, KTN Home, NTV, K-24, and KBC appeared to have lost market share in Kenya and specifically in Nairobi County in the aftermath of digital migration. A strategic response is the search for a favorable competitive positioning in the industry in order to outperform rivals and remain relevant in the market. This study chose the Ansoff growth matrix to assess its influence on market growth. Ansoff product/market grid explores two key dimensions, the product, and the market. The combinations of these two dimensions’ result in four growth strategies: market penetration, market development, product development, and product diversification. Market share means a fim1's sales volume in relation to the total industry sales volume for a specific period. A descriptive survey design was applied to collect the views and opinions of the personnel working with the five leading national television stations and the study targeted thirty respondents from the specific TV stations. The respondents were targeted because of their key executive roles. This study used a census to select thirty respondents from the five television stations and used semi-structured questionnaires to collect primary data. The data collected was analyzed using Statistical Package for Social Sciences (SPSS) program and quantitative methods like mean, percentages, frequencies, and standard deviation were used to describe the findings while inferential statistics like correlation analysis were used to establish relationships between the independent and dependent variables. The findings were presented in frequency tables, charts, and graphs. A multiple regression model was used to measure the level of significance of the influence of the independent variables on the dependent variable. The findings indicate that product development strategy has the highest influence on market share, followed by Market penetration strategies and Product diversification. The three strategies had values of 9.402, 4.568, and 4.489 respectively. A higher the value represents a higher correlation between the specific independent variable and the dependent variable. The study recommends the adoption of product development as a strategy by the affected stations since these Finns will be able to attract more viewers, grow market share, and therefore attract more revenue.