Innovation Strategy and Competitive Advantage of Safaricom Kenya Limited

Abstract

This study aimed to verify how innovative strategies lead and competitive advantage at Safaricom limited. The research employed a descriptive cross-sectional research design. The study was a case study as it focused on one company, Safaricom ltd. The population of the study consisted of 8 heads of department or there equivalent at Safaricom Kenya Limited Headquarters in Nairobi. Data gathered was analyzed via content analysis. The study utilized primary data and was majorly qualitative. In this research, a systematic standardized approach of interviews was employed as the most appropriate method. Data gathered was systematically structured in a way to help in analysis using the content analysis technique. The study determined that most of the respondents understood innovative strategies adopted in the organization. They also had the requisite work experience in the organization and educational qualification for them to make meaningful contribution to this study. The findings indicate that differentiation strategy is usually adopted to tackle competition. They also agreed that the organization concentrates in offering distinctive product or service so as to be distinctive from other enterprises. The results indicate that the organization creates unique product or service that give the company a prospect to have a premium price for their products to gain market share. The results indicate that the enterprise has developed a distinctive place in the market by way of offering of products or services that are priced for their distinctiveness or meet customers’ needs by providing more components in the products that they sell. Other strategies identified include creating awareness to the public for more sales, introducing offers relevant to the people and products warranties that guarantee customers of good quality. The findings indicate that the organization has adopted a low-cost strategy to tackle competition by ensuring that even the less fortunate get informed and are able to access the products. They have also introduced new offers and discounts thus reducing the cost giving affordable prices. The Findings indicate that the company focus attention on offering low priced or services relative to other market players, or unmatched products or services at an equal cost so as to become competitive using products such as Tunukiwa and consistent customer education. The study found a positive relationship between innovative strategies and competitive advantage at Safaricom limited. The firm has increased its market network, enhanced quality of services compared to rivals in the industry, adopted effective strategic responses towards external and internal changes faced by the company and has experienced high customer satisfaction. This implies that high levels of competitiveness may result from adoption of innovative strategies practices.