COMPETITIVE STRATEGIES ADOPTED BY PLAYERS IN THE BEER INDUSTRY IN KENYA

Authors

  • Catherine W. Ndung'u University of Nairobi
  • Dr. Vincent Machuki University of Nairobi

DOI:

https://doi.org/10.47941/jbsm.8

Keywords:

competition, competitive strategies, drivers of competition, sustainable competitive advantage, SWOT analysis.

Abstract

Purpose: The focus of this study was on assessment of competitive strategies adopted by players in the beer industry in Kenya

Methodology: The study adopted a cross sectional descriptive survey research design. There are 11 players in beer industry operating in Kenya. The research therefore took the form of a census study covering all the players in the beer industry in Kenya since the population of 11 firms was considered small enough. Eleven questionnaires were given out though only 10 were considered fit for data analysis. Data was analyzed using descriptive statistics.

Results: Findings indicated that players in beer industry in Kenya were faced by several forces that shape competition. These included competitive rivalry, threat of new entrants, bargaining power of suppliers and customers, globalization, regulation and information technology. Players in beer industry in Kenya used cost leadership strategy as a competitive strategy since they attempt to reduce their operational costs in order to deliver the product at the lowest prices. It was also possible to conclude that players in beer industry in Kenya use differentiation as a competitive strategy since they have invested in product research. Players in beer industry in Kenya also used focus as a competitive strategy since they have products for different types of consumers. It was also possible to infer from this study that players in beer industry in Kenya used value disciplines as a competitive strategy.

Unique contribution to theory, practice and policy: The study recommended that players in beer industry should carry out constant environment scanning so as to be able to identify the various forces that affect their operations. In addition, they needed to adopt strategic planning as a tool for planning against any unforeseen events that may destabilize the operations of the company.  Finally, it was recommended that these players needed to continue using the various competitive strategies. However, they also needed to factor in the concept of strategy fit by considering the internal capabilities and resources of the firm.

Downloads

Download data is not yet available.

Author Biographies

Catherine W. Ndung'u, University of Nairobi

Post graduate student

Dr. Vincent Machuki, University of Nairobi

Lecturer

References

Aosa, E. (1992). An empirical investigation of aspects of strategy formulation and implementation within, large private manufacturing companies in Kenya. (PhD dissertations, University of Srath Clyde Scotland unpublished).

Aumann, R. (1985), What is game theory trying to accomplish? K. Arrow and S. Honkapohja (eds), Frontiers of Economics, Basil Blackwell

Barney, J. (1991). Firm resources and sustained competitive advantage, Journal of Management, 17, 99-120

Bowman, C. (2008). The Bowman's strategic clock and hybrid competitive strategies.

D'Aspremont, C., & Jacquemin A. (1990). Cooperative and non-cooperative R&D industry with spillovers: Erratum, American Economic Review, June.

Hamel, G., & Prahalad, C. K., (2000). Competing for the future. Boston: Harvard Business School Press.

Hayes, R. H., & Wheelwright, S. C. (2003). Restoring our competitive edge: Competing through manufacturing, New York, N.Y: Wiley.

Jacquemin, A. (1987). The new industrial organisation, MIT Press.

Johnson, G., & Scholes K. (1998). Exploring techniques of analysis and evaluation in strategic management. Pearson Education ltd.

Johnson, G., & Scholes, K. (2002): Exploring corporate strategy, (6thed.). Prentice Hall Incl.

Karemu, C. K. (1993). An Investigation in the state of strategic management in the retailing industry: A case of supermarkets in Nairobi (Unpublished MBA research Project, School of Business, University of Nairobi).

Kay, J. (1999). Resource based strategy, Financial Times (September 27, 1999). New York N.Y: McGraw - Hill

Kibera, F.N. (1996). Introduction to Business: A Kenyan perspective, Nairobi, Kenya Literature Review

Milgrom, P., & Roberts, J. (1988). Economic theories of the firm: past, present, and future. Canadian Journal of Economics, 444-458.

Molina, M. A., Pino, I. B. & Rodriguez, A. C. (2004). Industry, management, capabilities and firms' competitiveness: an empirical contribution. Managerial and Decision Economics, 25, 265-281.

Newbert, S. L. (2007). Empirical research on the resource-based view of the firm: An assessment and suggestions for future research. Strategic Management Journal, 28(2), 121-146

Oketch (2006). The role of management ability and competence in the success of a chosen competitive strategy. Unpublished Master thesis

Ong'olo, D. (2004). Distribution restraints: Experiences in the beer and soft drinks industries in Africa. April 2004. Training Workshop report prepared for WTO

Person I. & Robinson (1997). Strategic management: Formulation, implementation and control. (6thed.). London, McGraw Hill.

Phusavat, K., & Kanchana, R. (2007). Competitive priorities of manufacturing firms in Thailand", Industrial Management and Data Systems, 7(7), 979-996.

Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance, New York, Free Press.

Porter, M. E., (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York, Free Press.

Porter, M. E., (2004). Competitive advantage, New York, Free Press

Schumpeter, J. (1950). Capitalism, socialism and democracy, Allen and Unwin

Thompson, A., & Strickland, A. J. (1993). Strategic management. concepts and cases, NewYork N.Y:. Irwin

Thompson, A., & Strickland, J. (1998). Crafting and implementing strategy, texts and readings, (10thed.). New York, McGraw Hill.

Treacy, F. & Wiersema H. (1993). Value disciplines. London, Lite Press.

Tuan, N. M. & Yoshi, T. (2010). Organizational capabilities, competitive advantage and performance in supporting industries in Vietnam. Asian Academy of Management Journal, 15(1), 1-21.

Downloads

Published

2016-10-14

How to Cite

Ndung'u, C. W., & Machuki, D. V. (2016). COMPETITIVE STRATEGIES ADOPTED BY PLAYERS IN THE BEER INDUSTRY IN KENYA. Journal of Business and Strategic Management, 1(1), 34–52. https://doi.org/10.47941/jbsm.8

Issue

Section

Articles