The Value Chain Activities and Competitive Advantage in Uap Insurance Kenya Limited

Abstract

The aim of the study was to determine the value chain activities and competitive advantage in UAP Insurance Kenya, limited. The study was conducted through a case study design whereby the unit of study was UAP Insurance Kenya Ltd. Case study design was more desirable when a detailed and an in-depth data on an organization or multiple firms is desired. Both secondary and primary data were utilized in this study. Primary data was obtained from managers of UAP Insurance Kenya Ltd using an interview guide. Secondary data was obtained from the company`s strategy documents and any other existing and relevant information about the firm as regards the value chain approach as a basis for competitive advantage creation. The data analysis was by way of content analysis. This was because the data collected was qualitative in nature. The qualitative data was summarized, categorized and presented according to common themes to assist the researcher in answering the research questions. The study identified various departments that carried out primary activities within the organization. They include; insurance paying claims, business development and financial planning services. However, the rest of the departments carried out support activities in the organization’s value chain. The study revealed that most of the respondents acknowledged that at least their department value chain activities were an input to another/other departments within the organization. The study also established that that the competition in the insurance industry in the catchment area of the respondents was very strong. The increase in competition may be attributed to the fact that there is increased technology which makes it easier to offer customer services at ease. It can be concluded that UAP Insurance Kenya has adopted strategic value chain activities in various departments; however such activities differed across the different departments. Some degree of integration of value chain activities existed between departments undertaking primary activities. The study also concluded that there was strategic linkage of value chain activities to the overall organizational objectives and competitive advantage. Value chain activities were strategically tailored to adding value to the organization overall competitive advantage. A lot of emphasis across the value chain activities focused on human resource management practices and offering high quality services to clients. The study recommended that unlike value chain in the product industries, the service industries should focus on human resources management value chain activities so as to capture the best of its people. They should therefore be driven by the strength of its people who would ensure that high quality services which are a cut above the rest are offered to their clientele.