Challenges of the Implementation of Turnaround Strategy and Competitive Advantage of Uchumi Supermarkets Limited in Kenya

Abstract

The objective of the study was to determine the challenges of the implementation of turnaround strategy and competitive advantage of Uchumi Supermarkets in Kenya. It explored the concept of turn around strategies, the competitive advantage and challenges bound to be experienced in implementation of turnaround strategy. This was a case study where interview guide was used to collect data from respondents. The respondents for this exercise were drawn from the heads of departments of Uchumi supermarkets. This was informed by the fact that they are the ones involved in strategic decisions. Secondary data to supplement the interview guide result was obtained from management. The study established that the retail chain had a well formulated strategic plan and excellent implementation program for its entire departments. The study also established that the business is heavily affected by competition ensuring from the liberalized economy, it is also suffering from large expansion programs it did several years back which were not based on business growth. Lack of innovative plans coupled with slow response to the modern dynamics in retail business was also established. The business is also suffering from inadequate funding and bad reputation. Internally, the business is suffering from demotivated staffs that are not sure of their future. The study recommends that the business should do work study and quantifying the output of each employee and eventually put all staff on renewal contract. The business should also consider the possibilities of renting out shelves to suppliers and outsource non-core activities. It also recommends that the stakeholders should review the objective and purpose for which this establishment was formed to justify its viability in the current dispensation.