Analysis of factors influencing efficient value chain management strategies in the dealership telecommunications industry: a case of selected firms in Nairobi

Abstract

It is the goal of almost every privately owned company to increase profitability. This is essentially achieved through two ways: reducing the cost base and increasing revenue. The paradox is that by cutting of costs in the short term it often results in a reduction in revenue earning ability in the longer term. In the same manner, a drive to increase revenue in the longer term often results in an increase in costs in the short term. This study analysed the factors influencing efficient value chain management strategies thus enabling firms to identify both the areas of huge cost that make little or no contribution to business performance and the prospects for opportunity that were worth financing. The study employed descriptive research design. Stratified random sampling techniques were utilized to identify the target population. The researcher made use of both secondary and primary data where the data collection instrument used was questionnaires which were mostly structured or closed ended. Some elements of open ended questions were used to give a greater depth of response. Document analysis was also effectively utilised. The study will show that human resource management, infrastructure, technology development and procurement are variables influencing efficient value chain management strategies in the Dealership telecommunication industry. In particular human resource management was ranked first of the four variables by a majority of respondents while procurement was ranked last.