Title:
INFLUENCE OF COMPETITIVE STRATEGIES ON PERFORMANCE OF MOBILE TELEPHONE SERVICE PROVIDERS IN KENYA

Authors:
David Kiarie Muruguru, Dr. Phelista Wangui Njeru, Kenya

Abstract:

Competitive strategies involve undertaking steps which strengthens a company and enables it to perform better compared to rivals. Organizations therefore have to continuously assess the competitive environment in which they operate and also assess their own approaches. This research navigated by competitive strategies which included cost leadership, focus and differentiation. The mobile telephone industry in Kenya is lucrative but faces challenges like any other industry. The Kenyan mobile telephone industry is competitive hence the players need to review strategies to counter competition. Specific objectives included, To determine influence of cost leadership strategies on performance, To assess scope of focus strategies on performance, to establish effect of differentiation strategy on performance. The target population of the study was 260 employees working in management, marketing, finance, research and innovation departments in selected mobile telephone phone companies. The research applied stratified sampling approach. The sample size was 78. The study used questionnaires with open ended and closed ended questions to collect data. Validity and reliability of data collection instrument was tested where Cronbach value of 0.7 was accepted. A pilot study was conducted where respondents did not take part in the final study. Confidentiality was assured and maintained throughout the process.  Statistical Package for Social Sciences model 26 was applied for data analysis. Association between the study variables was evaluated using correlation and regression. Data was presented by use of tables and graphs. Performance of the mobile telephone service providers in Kenya was highly determined by cost leadership, focus and differentiation strategies. This research advocates management in these entities to firmly assess these strategies so as to actuate their efficacy. The research advocates that before putting into action any of the above strategies, the management should first have a clear perception of the need and rationale just before endorsing it. Due to market aggression application of relevant approaches will ensure that entity remains lucrative.