Competitive Strategies and Performance of Telecommunication Firms in Kenya
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Date
2022
Authors
Ngugi, Dorcas Wanjiru
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Organizational performance 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 participant 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 cost leadership strategies 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.
Description
A1research1project1submitted1to1the1school of
Business1in1partial1fulfillment1of1the1requirement1for
1the1 Award1 of1 Masters1 Degree1 in1 Business1
Administration1 (Strategic1 Management)
Kenyatta University
Keywords
Competitive, Strategies, Performance, Telecommunication, Firms, Kenya