|dc.description.abstract||Organizations are faced with a myriad of challenges emanating from the environment. In
order to survive, strategies have to be devised to respond to the forces that threaten to halt
survival. Companies that do not respond appropriately are usually driven out of business.
Companies respond to the challenges in terms of devising cost cutting strategies,
adopting new technologies, competing on low prices or on high quality products or
services, differentiating the products or focus strategies.
The insurance industry has had a number of environmental changes over the years.
Previous studies on the industry found out that most companies within the industry had to
devise ways of responding to these changes in order to survive. Jubilee insurance has
been a player in the industry for many years and is expected to have formulated strategies
to enable it respond to these changes.
This research was carried out to examine how Jubilee insurance company of Kenya is
strategically responding to challenges posed by the competitive environment. The
research was a case study of Jubilee insurance company of Kenya, a local company with
subsidiaries in East Africa. The researcher used an interview guide as the primary data
collection instrument. The interview guide was administered using face to face interviews
to the departmental heads and other employees in management positions at Jubilee
Insurance. Data collected was analyzed based on content analysis. The study found out that the operating environment in the insurance industry is very
dynamic and volatile. The study further concludes that Jubilee Insurance had adopted
various strategies to respond to the environmental changes such as improved customer
service, expansion into new regions, operation cost reduction, restructuring and
outsourcing of non core activities. The study recommends that Jubilee Insurance should
engage in more cost reduction as a response to its competitor’s strategies whose products
and services are much cheaper. The government should also reduce some of the
regulatory measures to give the industry the power to regulate itself since the industry is
Further research should be undertaken to establish the strategic responses to competitive
changes employed by other companies within the insurance industry. The study was
limited in that it included respondents from one company and conclusions drawn may not
be representative of the whole industry. It also captured members of one focus group
excluding other important stakeholders from the study.||en