| dc.description.abstract | According to Ansoff (1998), competitive strategy is the distinctive approach which
a firm uses or intends to use to succeed in her market and adds that the formulation
of competitive strategies includes consideration of strength, weaknesses,
opportunities and threats while Porter (2007) sees strategy as the search for
favourable competitive position in an industry, the fundamental arena in which
competition occurs. He outlines competitive strategies that include cost leadership,
differentiation and focus. Firms face a common environment and competitive
advantage is gained by implementing appropriate competitive strategies.
This study sought to determine the Competitive Strategies adopted by Saccos in
Mombasa County and the challenges faced thereon. It was a survey study that
targeted sampled Saccos in the County. The study used both primary and secondary
data and a response rate of 56% was achieved. Responses were tabulated and coded.
Statistical Package for Social Sciences (SPSS) was utilized to analyse the variables.
Tables, graphs and percentages were used to summarize the data. Descriptive
Statistics was used to present the findings. Subsequently the data were translated
into specific categories in line with the objectives of the study.
The researcher found out that Saccos in Mombasa County had competitive
strategies albeit in a muddled form. The researcher observed for instance that many
respondents favoured cost strategies but again would choose both cost and
differentiation stratagems. Generally, majority of Saccos in Mombasa were between
31 and 50 years old, had between 501 to 1000 shareholders and few offered FOSA
services. Their major goal was profit maximization. Most Saccos at 85% had
mission/vision statements whose formulation was majorly done by directors and the
staff. Focus on customers was also general and specific at the same time. Cost
strategy was mostly practised through reduction of operation costs with a standard
deviation of 1.09 while differentiation strategy was mostly in the form of engaging
highly skilled staff with a standard deviation of 0.94. The researcher’s findings also
indicated that Government policies and resistance to change were the greatest
challenges to strategy formulation and implementation. Other challenges faced were
lack of financial resources and absence of good management to drive competitive
strategies in the right direction.
The researcher therefore recommends that Saccos in Mombasa County need to up
their game in strategy formulation and implementation and look beyond their ilk
especially when crafting competitive strategies. They could also merge in order to
coopete to ward off threats from their more established common bigger rivals –
commercial banks – whose loan arrangements are now almost as favourable as
those of Saccos. They should also invest in good management and technology. In a
nutshell, modern Saccos should not just think outside the box, but away from it.
For further research purposes, it is recommended that a study be carried out to
determine the influence Sacco Societies Regulatory Authority (SASRA) has on the
Sacco movement. It was created by an Act of Parliament with a view to immensely
transforming Sacco operations in Kenya. SASRA was implemented on the duration
of this study (17th June, 2011) and its effects on the Sacco movement could not be
immediately established. | en |
