Strategic Innovations and Competitive Advantage at Bollore Logistics Kenya

Abstract

For an organization to thrive in an industry, it must choose a strategy behavior mode that corresponds to the degree of environmental turbulence and build resource capacity that supports the selected mode. Strategic innovations in today’s organizations are paramount to the success and competitive advantage in organizations and enhancement of customer retention and market growth. The aim of this study was to establish the effect of strategic innovations on competitive advantage at Bollore logistics limited in Kenya. The study was based on the disruptive innovation theory, dynamic capability theory and diffusion of innovation theory. The research design was a case study which used primary data. The research instrument used to collect the data was an interview guide. The data obtained from the respondents was analyzed qualitatively by the use of content analysis. The study found that Bollore logistics limited customers are well informed about the terms of services and products and the level of quality they expect to get from the company. Strategic innovations contributed to increase in revenue growth, market share and customer base. Technology innovations had eased the delivery of service to the customers. In addition, the adoption of information systems had helped the company customers access the organization services irrespective of where they were located. The study also established product innovations helped the company introduce new products to target new customers and give more options to the existing customers. Bollore logistics limited has been able to achieve an increase in market share and customer base through developing products that meets the customer’s needs. The study revealed the following services contributed to customer’s retention; warehousing, project cargo logistics, clearance, and freight forwarding. The study lastly established that marketing and process innovations had significantly contributed to the retention of customers and growth of market share for Bollore logistics limited. Process innovation streamlined the processes and procedures within the company thus creating efficiency on services and products that customer accessed. Through process innovation the company was able to remove procedures that were not relevant and thus able to serve the customer within a short period. Marketing innovation contributed to the company reaching customers and non-customers all over the country. Through marketing innovations, the company has been able to increase its customers number and build a strong brand and presence locally and internationally. The study concluded the strategic innovations; process innovations, product innovations, marketing innovations and technological innovations are essential for an organization’s competitive advantage. The study recommends while organizations adopt ICT it is important, they have mechanisms that will handle any challenges that might arise from the new strategic innovations.