An Analysis of the Effects of Competitive Intelligence Practices on the Performance of Pharmaceutical Companies in Nairobi
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Date
2015
Authors
Wambugu, Paul Wachira
Journal Title
Journal ISSN
Volume Title
Publisher
International Academic Journals
Abstract
The relevance of monitoring, understanding
and responding to competitors has long been
recognized as a significant aspect of
marketing activity. Yet analysis of the
competitive environment seems often to be
subordinated as greater emphasis is placed
on understanding consumers. Clearly
important though customers are, they should
not dominate marketing strategy and
planning. Competition in the Kenyan
Pharmaceutical Industry continually work to
drive down the rate of return on capital
invested. The pharmaceutical companies
have thus resulted in making use of various
competitive intelligence aspects to ensure
profitability. The study generally sought to
analyze the effects of competitive
intelligence practices on the performance of
pharmaceutical companies in Nairobi.
Specifically, the study sought to establish
the effect of product intelligence strategies,
new markets intelligence, technology
intelligence, strategic alliance intelligence
and on the performance of pharmaceutical
companies in Nairobi. The study adopted a
descriptive survey design. The method is
chosen since it is more precise and accurate
since it involves description of events in a
carefully planned way and also portrays the
characteristics of a population fully. The
study targeted managers of pharmaceutical
distribution companies in Nairobi. For the
smaller firms, the target respondents were
the owners/managers or the superintending
pharmacists or their designate. In larger
corporations, the managers at the time being
in charge of distribution, their equivalents or
their designate was targeted. From the
population sampling frame the required
number of subjects/ respondents was
selected through stratified proportionate
random sampling technique based on
whether they bare wholesalers, manufacturer
or retailers. Primary data was obtained
through use of questionnaires. Quantitative
data collected using a questionnaire was
analyzed by the use of descriptive statistics
while the qualitative data was analyzed
using content analysis. In addition, the
researcher conducted a multiple regression
analysis so as to determine the relationship
between the company’s profitability and the
four competitive intelligence practices. This
research helped the companies to remain
competitive and profitable amidst the
current stiff competition witnessed in the
pharmaceutical sector. The study found that
the company employed new market
intelligence as a competitive intelligence.
Product intelligence influenced the
performance of the company to a great
extent. The company initiated activities to
obtain information on technology
advancement in the industry to a very great
extent. Mergers in the industry and strategic
alliance enhanced the performance of the
company to a very great extent. The study
concludes that the company employed new
market intelligence as a competitive
intelligence. Product intelligence influenced
the performance of the company to a great
extent. The company initiated activities to
obtain information on process automation in
the firm, interconnected technology in the
company, integrated systems in the industry
and new software in the industry. Joint venture in the industry and acquisitions in
the industry enhanced the performance of
the company. The study recommends
pharmaceutical companies to employ new
market intelligence. The study recommends
the managers in pharmaceutical companies
to adopt product diversification intelligence.
The company should initiate activities to
obtain information on technology
advancement in the industry. They need to
form mergers so as to enhance the
performance of the company.
Description
A research article published in International Academic Journal of Human Resource and Business Administration
Keywords
Product intelligence, New markets, Technology, Strategic alliance
Citation
Wambugu, P. W. (2015). An analysis of the effects of competitive intelligence practices on the performance of pharmaceutical companies in Nairobi. International Academic Journal of Human Resource and Business Administration, 1 (4), 1-13