First Mover Strategy and Competitive Advantage of Selected Originator Pharmaceutical Companies in Kenya
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Date
2025-12
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Kenyatta University
Abstract
In the rapidly evolving global landscape, pharmaceutical managers face crucial task of understanding and executing strategies to stay aligned with the constantly changing business environment. Therefore, in a fast-changing global environment, pharmaceutical managers in Kenya face the challenge of implementing strategic approaches to remain competitive. Despite the effort, Competitive Advantage among Originator Pharmaceutical Companies in Kenya remain below expectations. In 2020, pharmaceutical companies accounted for only 4.6% of the country's export share, despite importing an average of 60% of pharmaceutical products between 2017 and 2021. Hence, this study investigated the effect of first mover strategies on competitive advantage of originator pharmaceutical companies in Kenya. Specifically, the study examined the effect of barriers to entry strategy on competitive advantage of originator pharmaceutical companies in Kenya, determined the effect of rapid product cycles on competitive advantage of originator pharmaceutical companies in Kenya, assessed the effect of mass market dominance on competitive advantage of originator pharmaceutical companies in Kenya. Finally, the study evaluated the effect of niche market penetration strategy on competitive advantage of originator pharmaceutical companies in Kenya. The research was guided by the game theory, firm capability theory, and the theory of innovation. The research applied descriptive design, the target population was 583 employees of selected originator pharmaceutical companies however, stratified and simple random sampling techniques were used to pick 322 respondents. Data was collected using a semi-structured survey, the researcher tested face and content validity of the questionnaire through experts’ opinion while the reliability was tested using Cronbach's alpha coefficient where a score of 0.7 and above was accepted. Data was analyzed using both descriptive and inferential techniques, and the results presented through tables and figures for ease of understanding and interpretation. Results indicated that barriers to entry, rapid product cycles, mass market dominance, and niche penetration strategies were significantly affecting competitive advantage of the selected originator pharmaceutical companies. The researcher recommended that originator pharmaceutical companies should enhance their competitive advantage using first-mover strategies by lobbying the government to strengthen the barriers to entry, investing in R&D, agile manufacturing, marketing, and niche market penetration.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of Degree of Masters in Business Administration (Strategic Management) of Kenyatta University, December 2025.
Supervisor
1. Mauthe S. MaKau