Influence of Strategic Management Practices on Competitive Advantage of Large Supermarket Chains in Nairobi County

Abstract

Though retailing has transformed in the recent past to one sector that has grown in prominence as a major economic driver especially in developing economies, it still remains erratic with increasingly fickle shopper loyalties to retailers. Today’s supermarket managers are faced with a daunting task of steering their business to thrive and build sustainable competitive advantage under a turbulent environment where competition is increasing from new entrants to the market, changing consumer habits and adoption of new technologies opening possibilities like online business. The business managers of supermarkets need to continually improve their capacity to devise and put into action plans that will result in a sustainable competitive advantage over the long term. This is necessary in order for them to remain ahead of the curve while still retaining their consumers. The primary purpose of the research was to ascertain the extent to which strategic management methods have an impact on the competitive advantage enjoyed by big supermarket chains, which in turn provides them with an edge over their competitors in the market. In this research approach, a case study was used. Interview guides were used to collect primary data from five grocery chain executives who were at the top of their respective positions. For the purpose of presenting the outcomes of the research, content analysis was used to examine the data that was acquired. In the results, it was accepted that the supermarkets had developed vision and mission statements, as well as conducted environmental analysis. Additionally, there was evidence of strategic planning, the establishment of targets, and the monitoring of the execution of the strategy. All of the members of the management team at the supermarkets are involved in the process of communicating and implementing the organization's vision and purpose. According to the findings of the research, one of the challenges that strategic management faces is dealing with budgetary restraints. As a result of being entrusted with the responsibility of managing supplier money, supermarkets are required to manage their cash flows in a cautious manner. A greater number of multinational firms are expected to enter the Kenyan market in the future. A conclusion that can be drawn from the research is that it is necessary for management to include their staff in the development of new ideas and plans in order to fully appreciate their accomplishments. The research also comes to the conclusion that strategic management techniques are a realistic strategy that can be used in supermarkets to bring about the fulfillment of goals and objectives that have been established by the firm. It is advised that supermarkets should take the initiative to create their long-term and short-term goals and objectives in a timely manner. This will allow the supermarkets to have a guideline that will direct them towards their strategic plan, which should be carried out in order to aid in the organization's SWOT analysis. In addition, the report suggests that the senior management of supermarkets should develop and put into action official succession plans with due diligence. According to the findings of the research, the board of directors should be made more professional by hiring individuals who possess a keen understanding of business. These individuals are accountable for formulating policies that steer the company and have the ability to influence the selection of the top management team that will be responsible for running their supermarket chain