COMPETITIVE STRATEGIES AND PERFORMANCE OF TELECOMMUNICATION FIRMS IN KENYA
Dorcas Wanjiru Ngugi - Master of Business Administration Student (Strategic Management Option), Kenyatta University, Kenya
Dr. Elishiba Murugi - Lecturer, Department of Business Administration, Kenyatta University, Kenya
ABSTRACT
Organizational performances are dependent on firm’s strategic practices. For organizational strategies to have an impact on a business the leadership style should be strategic. Telecommunications industry in Kenya has experienced heightened level of competition in both the voice and data service provision. Many companies have been facing declining performance evidenced by low profits and high losses. Telecommunication firms in Kenya experience numerous challenges from low subscription, pitiable connectivity in certain regions, staff retrenchment, poor customer service, poor telecommunication infrastructure and ineffective formulation and implementation of strategies. Effective competitive strategies can be viable tools towards effective and efficient growth and sustainability of the industry. Nonetheless, observed studies on the subject matter; competitive strategies and telecommunication performances within firms are still rare. The objectives of the research were investigating the impact of competitive strategy on telecommunication firm’s performances in Kenya with specific objectives of: - examining impact of cost leadership, differentiation and focus cost on performance of telecommunication firms in Kenya. The research was based on porters, goal setting, behavioral and resource based theories. Descriptive research design was used and it targeted 216 participants who included executive managers, accountants, middle level managers, supervisor’s engineers and accountants. It adopted a stratified random sampling to get the actual sample size bringing the number of sample size to 65 with 9 executive members, 11 accountant, 19 engineers, 12 middle level managers and 14 supervisors. Primary data was collected via questionnaire which was administered by dropping and picking. Data collected was analyzed using SPSS. Multi regression analysis was used to indicate the competitive strategies examined. The research established that focus cost, differentiation, focus differentiation and a cost leadership strategy has a positive and important effect on telecommunication companies’ performances. Pearson correlation analysis was used and it established that focus cost, differentiation, focus differentiation and cost leadership strategies had a positive and significant relation with Telecommunication Company’s performance and that it was good. The research recommended that there is need to improve corporate strategies for purposes of achieving increased performance within the firms. Further it recommended that there should be regular and frequent market surveys to determine performances, trends and needs. Lastly, the research recommended that there should be a consideration for demographic grouping in products and service pricing.