| dc.description.abstract | Since the turn of the millennium, the general business environment has become more volatile, unpredictable and very competitive. Coping with the increasingly competitive environment has called on firms to rethink their marketing strategies (Pearce and Robinson, 2005). Kenya Airways has faced a number of challenges since its inception, most of which have been intensified by the impact of globalization. The objective of this study was to determine strategic responses that Kenya Airways employs in responding to the challenges of globalization.
The research design used was case study method. This method was suitable for the study because it aimed at giving in-depth account of the how the Kenya Airways Limited is responding to the challenges that it is facing in a globalized economy. Primary data was collected using semi-structured questionnaires. The questionnaires were administered using drop and pick later method. The respondents were picked from the network planning and strategy staffs where all the 15 were selected to respond to the questionnaire. This number included the head of the division. Considering the qualitative nature of the study and the envisaged response as per the questionnaire, a conceptual and qualitative content analysis was used. Where applicable, however, figures were presented in tabular form or graphically, and a percentage or mean obtained quantitatively.
The study found that the greatest globalization challenge presently facing Kenya Airways is terrorism. Competition and changing technology were also found to be significant factors affecting Kenya Airways. Kenya Airways has responded in a number of ways. One of the major things the company has done is to come up with an exhaustive strategic plan which encompasses the specific strategies it
adopts in the market. Chief among them has been putting up safety management system in order to increase safety of flights. The other strategy that KQ has extensively used includes forming strategic alliances with other airlines in order to beat competition. This has seen it fly into other destinations that it was not able to fly earlier.
The study recommends that the issue of loyalty programs needs to be reconsidered by the organization. This was found to be least used among the strategies. This can be used as a marketing strategy to enhance loyalty to the brand and to attract new clients from foreign countries or locally. The study recommends that a study be done to explore further whether these strategies have significantly influenced performance of the organization. A study of this nature should also be replicated to other industries to establish their strategic
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