Strategic Planning and Competitive Advantage of Five Star Hotels in Kenya

Abstract

Managing hotels in Kenya have turned out as quite difficult as a result of demands arising from the dynamic environment of business; Hotels found it hard to satisfy the client demands challenge and also complicated processes of production and service technologies. Improving organizational competitive advantage in todays’ competitive business environment is thought to be1a function of effective1strategic planning. The1objective of this study1was to determine the1relationship between strategic1planning and competitive advantage1in five-star hotels in Kenya. This1study was based on resource based view and the Michael Porter’s Five Competitive Forces. It adopted a descriptive survey design. The research population was composed of top 10 five1star hotels in Kenya. The1respondents composed of two managers in each of the top ten 5- star hotels in Kenya. Primary1data was collected1by use of a semi structured1questionnaire. Questionnaires1that are Self-administered1gave the participants room for answering questions on their own and also in their speed. Content analysis was used to analyze the data. The research discovered that strategic plan produced real benefits to five star hotels such as1an enhanced wakefulness1of external threats, better understanding1of competitors' strength. It further aided in developing inputs1for new strategic1planning, the urge for1feedback, appraisal and reward, development1of the strategic management1process and judging the1validity of strategic1choice. Based on the study findings, it is important for five-star hotels in Kenya to appreciate that with changes in the business environment, they will need to adopt tools and techniques for strategic planning in order to survive turbulent business environment. The study advocates for timely1disbursement of adequate resources to strategy-essential activities, creating1strategy-encouraging1policies, employing best1policies and programs for1constant improvement. Strategy planning team in five-star hotels in Kenya should understand their current needs and future needs so that they can build the firm, through the implementation of appropriate quality strategies.