Management of Value Chain for Competitive Advantage at Kisumu Water and Sanitation Company Limited

Abstract

Value Chain management is a powerful tool an organization can utilize for the attainment and sustenance of competitive advantage. This revelation informs the firm’s crafting and implementing of a competitive strategy in a bid to acquire an admirable competitive position in the sector. Several theories and studies have advanced that a superior competitive advantage can be attained by disaggregating the firm into strategically significant activities and thereby understanding how each functions.With these imperatives known, the study sought to examine how Value Chain is managed for Competitive advantage at KIWASCO Limited. The study objectives were to determine the Value Chain Management practices and to establish how the firm manages its Value Chain to achieve a Competitive advantage. Among studies done in Strategic management, the focus was on Value Chain analysis and Competitive advantage in different contexts. Few of the studies revealed how the Value Chains are managed to achieve a Competitive Advantage. The planning and development of this research study was to fill this gap. The study adopted a case study as a research methodology in order to gain a deeper understanding of the firm’s Value Chain activities. Both primary and secondary data was collected. Primary data was obtained by the use of an interview guide and secondary data from organizational and sector specific documents.Such as the strategic plan,annual work plans and maintenance schedules. Due to the qualitative nature of data received content analysis was best suited for analysis with a pointer on the study objectives. The study established that KIWASCO has dissagregated its key business functions into value generating activities.The findings of the study revealed that sources of competitive advantage are inherent in the firm’s value chain management practices. Porter’s generic value chain model was resourceful in determining the VCM practices.Technology and development was found to bekey in value creation and competitive advantage. KIWASCO has automated its key value chain processes to ensure efficacy inservice delivery.Physical and soft infrastructural development within coverage areas accorded the firm seamless distribution channels, outbound logistics and marketing activities. Firm infrastructure, good corporate governance practices and partnerships with other stakeholders like donors and development partners enabled the firm to access technical and financial assistance. Personnel management applied practices like recruitment and selection which were found to be highly competitive ensuring the right people at the right jobs. The study recommends that KIWASCO should explore more robust initiatives in managing its value chain for competitive advantage. Such initiatives have to do with policy issues and expertise consultations. This study is particularly useful to KIWASCO’s management, policy formulation and implementation teams. Being a case study focusing on one WSP in Kenya.Future researchers should target more firms in the sector to enable generalization of findings and recommendation. Future studies should also consider contemporary Value chain models to factor in other crucial organizational aspects like leadership, corporate culture and people.