An analysis of the relationship between competitive strategies and organizational performance : a case of mobile telecommunication companies in Kenya
Date
2014
Authors
Gathinji, Loice Nyawira
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
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.
Description
Submitted in partial fulfillment of the requirements for the Degree of Masters of Commerce
Keywords
Organizational performance, Competition, Mobile telecommunication, Competitive Strategies, Kenya, Business