Investigation of determinants of competitive advantage of firms within the telecommunication industry in Kenya: a case of safaricom limited
Loading...
Date
2014-07-22
Authors
Mwaniki, Peris Wangui
Journal Title
Journal ISSN
Volume Title
Publisher
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.
Description
Department of Business Administration, 74p.2013