Competitive Strategies Adopted to Influence Performance by Charter Airlines at Wilson Airport, Kenya

Abstract

Competitive strategies are an essential component of business success as they outline management’s game plan of addressing dynamic competitive challenges to achieve organizational performance. Airlines at Wilson Airport in Kenya operate in a highly competitive environment that has seen positive growth over the years. The objective of this study was to establish competitive strategies adopted by charter airlines at Wilson Airport in Kenya to influence performance. To achieve this objective, the study also examined competitive challenges faced by charter airlines at Wilson Airport. The study adopted a descriptive cross-sectional survey design and utilized structured questionnaires to collect data from forty charter airlines certificated to conduct non-scheduled operations at Wilson Airport. Majority of the questionnaires were delivered and feedback received online using google docs. A few questionnaires were self-administered using drop-and-pick later method. Data collected was analyzed using Microsoft Excel 2016 and SPSS version 23 and presented using tables and figures. Regression analysis was used to determine the degree of relationship between the study variables. The study found that the charter airline industry at Wilson Airport was highly competitive and faced a variety of internal and external challenges. The most serious challenges experienced include inadequate capacity of aviation infrastructure, irrational pricing and predatory action by major competitors, high operating expenses, threat of new entrants and inconsistent profitability. The study also found that charter airlines adopted several cost leadership, differentiation and focus strategies to various degrees and this resulted in significant improvement in overall organizational performance. Regression analysis confirmed the existence of a significant relationship between competitive strategies and organizational performance. The study concluded that improved organizational performance among charter airlines at Wilson Airport is achieved through effective implementation of the three generic strategies taking into consideration the firm’s business environment. The study made various recommendations to address the challenge of inadequate capacity of aviation infrastructure, to promote airline branding and marketing and also to review airline operational cost profiles with the objective of developing, reviewing and implementing cost-cutting strategies. The study also made suggestions for further research to enhance understanding of the subject of study.