Strategies adopted by Kenya electricity generating company PLC limited to achieve competitive advantage

Abstract

Managers are expected to make decisions on current and emerging issues on behalf of business owners. Their decisions concern prudent use of resources in a dynamic environment and are aimed at profit maximization and value creation to shareholders. To accomplish this task, they are led by the company’s strategic plans, vision, mission, and company values. To succeed, they must be cognizant of the forces of competition in the operating environment. To respond to the dynamic environment they must formulate good strategies, action the intentions, and conduct reviews to gauge performance. The study objectives were to establish Strategies adopted by Kenya Electricity Company PLC Limited to achieve Competitive Advantage, and also to identify factors that influence the choice of Strategies at KenGen PLC Ltd which lead to Competitive Advantage. The study was anchored in three Strategic Management theories namely; Resource Based theory, Porter’s Generic Competitive Strategies theory and Knowledge Based theory. The study adopted a case study because of its ability to supports an in-depth investigation of a topical issue namely Strategies adopted which has a bearing on the success of any organization in a competitive environment. The case study was on KenGen PLC Ltd a leading power generation company in Kenya currently commanding 62% market share. The researcher collected qualitative data from KenGen’s top management responsible for Strategy in their divisions and departments which in effect contributes to overall company Strategy, and the aim was to capture their experience and perception of the topic using an interview guide. Secondary data was collected from company documentation. Data obtained was analysed using content analysis. The study found out that Strategies adopted by KenGen were a result of the unique resources and attributes within the organization. Dealing with a unique product and in a regulated environment, the findings point to KenGen enjoying cost leadership by producing power at lowest cost utilising its generation mix. The company has differentiated itself by engaging in power generation using the various modes and with time gained experience and reputation. The company has maintained focus by mobilizing resources, building, commissioning and operating power plants being guided by national government least cost development plan. The factors that influenced choice of Strategies were the government through the ministry of Energy, KenGen Strategic plan, new legislation, governance leadership and culture, emergent issues, research, innovation and technology; collaboration and partnerships. Because the current research sampled top management in KenGen PLC Ltd, it recommends future studies to consider middle and lower management in the same organization. It also recommends further studies in the private sector power generation in Kenya, and the entire power generation sector in Kenya to obtain a holistic view. Key Words: Strategy, Competitive Advantage, KenGen PLC Limited.