Investigation of determinants of competitive advantage of firms within the telecommunication industry in Kenya: a case of safaricom limited

Abstract

Many organizations today are focusing on becoming more competitive, by launching competitive strategies that give them an edge over others. Competitive advantage is what enables a business organization to thrive. It is the objective of strategy. It is the combination of elements in the business model which enables a business to better satisfy the needs in its environment, earning economic rents in the process. A competitive advantage exists when a firm has a product or service that is perceived by its target market customers as better than that of its competitors. A number of factors determine the level of competition within an industry. This study was therefore designed to investigate the determinants of competitive advantage of firms within the communication industry in Kenya, a case of Safaricom Ltd. The specific objectives were to determine the effect of customer orientation, lCT development and differentiation of products and services on competitive advantage of firms within the communication industry. Literature review was done from past studies in textbooks and journals. This helped the researcher to clearly show what each objective entails. It also helped in drawing conclusions on the determinants of competitive advantage of firms within the communication industry in Kenya. The study targeted a total of 200 Safaricom Employees at the top and middle level management. Stratified .randorn sampling technique was used to select a sample of 10% (20) respondents. The study collected primary data where a self-administered questionnaire was used. Quantitative data collected was analyzed by descriptive analysis techniques such as percentages, frequencies, means and standard deviations. The data was coded and analyzed using SPSS and MS Excel. The study found out that customer orientation, lCT development and differentiation of products and services are determinants of competitive advantage. The study recommends that Safaricom should increase loyalty programs to ensure customers do not cross over due to prices. Safaricom should also upgrade its systems more often and train their IT managers to ensure efficiency and effectiveness finally; safaricom should come up with unique products to make it appear unique. The study may benefit firms within communication industry in strategy and policy formulation, it may also benefit Safaricom in formulation of policies regarding long term plans and the study may also be significant to students and future scholars since they may have a ready source of. literature review.