Sustainable competitive advantage under conditions of change at East African Packaging Industries (EAPI)
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Date
2006-12Author
Mbugua, Stephen N
Type
ThesisLanguage
enMetadata
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The research study was undertaken to understand sustainable competitive advantage at East
African Packaging Industries Limited (EAPI). The objective of the study was to investigate the
development of sustainable competitive advantage under conditions of change at East African
Packaging Industries Ltd, Kenya.
EAPI once controlled a huge market share in the paper packaging industry in Kenya. Over time
this control was heavily eroded by various competitive forces, subsequently leading to loss in
profitability year after year. However, the firm embarked on numerous strategic responses that
reversed the trend and returned the firm to profitability in a sustainable manner. It was therefore
deemed necessary to understand the sort of strategies EAPI had developed to sustain her
competitive advantage.
Personal in-depth interviews were conducted where twelve respondents, of senior management
level, provided the primary qualitative data for the case study. Most of the respondents had been
in the company for over five years and participated in the development and operationalization of
the competitive strategies under review. They were therefore best placed to discuss the issues
under review.
A Content analysis was carried out on the data which indicated that the company had identified
and exploited its key resources and market opportunities, and developed them for a sustainable
competitive advantage. It was evident from the research that EAPI had put in place strategies that
gave the firm sustainable competitive advantage. In particular, operations in all functions within
the firm had a unique focus on customer service aimed at building loyalty and lasting
relationships with all the firm's customers. Other factors, such as, product development,
continuous improvement, consistency, unique resources and shared competencies featured
prominently in ensuring that the firm's competitive advantages were sustainable in the long term.
Developing of sustainable competitive advantage at EAPI was very challenging. This was due to
the dynamic nature of the firms operating environment. Factors that were at one stage a source of
competitive advantage had, at another stage, become irrelevant and thus no longer provided any
form of competitive advantage.
This study concludes that by creating superior value to her customers, that exceeds that of the
competition have a long term superior performance in the market place. However,
further studies must be done to determine how a firm can sustain its competitive advantage in a
state of rapid or turbulent environmental situations.
Citation
Masters thesis University of Nairobi (2006)Publisher
University of Nairobi. School of Business Studies
Description
Degree of Master of Business Administration