Competitive Strategies Adopted by Second Hand Motor Vehicle Dealers in Nairobi, Kenya
Abstract
The objective of this study was to establish the competitive strategies used by second
hand motor vehicle dealers to cope with increased competition in the second hand
motor industry. To achieve the objective a survey was conducted, subsequently the
shareholders and managers of the second hand motor dealer showrooms were asked
to complete a questionnaire. 54 out of the targeted 66 respondents completed and
returned the study questionnaire representing 82% response rate.
It was found that 67% of the surveyed second hand motor dealer showrooms have
been in operation for less than five years, 89% of them are limited companies and
_ 96% of the surveyed respondents were aware tbat the :industry faced stiff competition.
It was found that email circulation of cars on offer to friends, sale of cheap cars,
i
stockinq of unique cars, offering of value adding services-like car cleaning and fixing
alarms are particularly popular competitive strategies with second hand motor dealers,
they are used to a great extent by the surveyed second hand motor dealers.
The study established that Porter's generic strategies are moderately used. The
second hand motor dealers use the cost leadership, focus and differentiation
strategies interchangeably. On factors influencing competitiveness, hiring competent
staff is the strategy that came out very to be very popular.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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