Market Expansion Strategies and Performance of Telkom Kenya Limited in Nairobi City County, Kenya

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Luvusi, Jackson
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Kenyatta University
The environmental conditions of many companies have changed rapidly. This resulted to serious competition among telecommunication companies in Kenya, which caused Telkom Kenya Limited to seek for effective marketing expansion strategies that could differentiate itself from others in order to enhance its performance. Therefore, this study aimed at investigating the influence of market expansion strategies on the performance of Telkom Kenya Limited in Nairobi City County, Kenya. The specific objectives of the study were to examine the influence of diversification strategy on the performance of Telkom Kenya Limited, market penetration strategy, product development strategy and market development strategy. The study was anchored by Resource Based View Theory and Ansoff Theory. The study adopted a descriptive research design. The selected target population was Telkom Kenya Limited in Nairobi Region. The total population was 75 respondents comprising of 5 marketing managers and 70 support staff. This study carried out a census of 75 respondents. Primary data was collected using questionnaires comprising of both structured and unstructured questions. Questionnaires were piloted to 10 respondents who were not included in the final study to assess the validity and reliability of the instruments. Validity was assessed using content validity and reliability was tested using Cronbach Alpha test. Quantitative data was analyzed using descriptive statistics such as mean and standard deviation and presented using tables, figures and charts. Qualitative data obtained from the open ended questions was analyzed thematically in line with study objectives and presented in narrative form. Inferential statistics were analyzed using correlation analysis and multiple regression analysis. The study examined that diversification strategy, market penetration strategy, product development strategy and market development strategy had a significant influence on the performance of Telkom Kenya Limited. The study concluded that Telkom Kenya Limited has adopted several diversification strategies to enhance their performance and is employing the diversification strategies in attaining and sustaining competitive advantage in the local and regional market. Telkom Kenya takes advantage of low prices to increase product demand and increase market share through market penetration strategy. A product development strategy provides a framework for creating new products or improving the performance, cost or quality of existing products. Key changes in the marketing mix regarding marketing development strategy are likely to be place, with consideration of new channels and routes to market, as well as promotion through promoting to new target segments. The study recommended that Telkom Kenya should diversify by adding new product lines, or entering a new market so as to open up new markets and new customer groups, thus improving its performance. For effective implementation of market penetration strategy, Telkom Kenya should keep on adjusting the price to increase sales as lowering prices is an effective tactic to attract potential customers. The organization to define its product so as to team make the team focused and avoid pitfalls such as developing too many products at once, or running out of resources to develop the product. For effective marketing development strategy, the organization should consider whether the market it’s entering is attractive, whether it’s ready to commit the resources required to meet the identified market, can it adapt to the new market and whether it can remain competitive in the new market.
A Research Project Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of Degree of Master of Business Administration (Marketing Option) of Kenyatta University. January, 2020
Market Expansion Strategies, Performance, Telkom Kenya Limited, Nairobi City County, Kenya