| dc.description.abstract | Organizations are environment dependent. External environment provide inputs in the
organization, and organizations discharge outputs that meets the needs of the external
environment. The external environment is always changing sometimes more
turbulently than other times. Organizations must therefore develop strategic responses
and configure the resources to respond to these challenges
Organization develop strategic planning programme to respond to the high levels of
environmental turbulence. Strategies are designed which ensure that organization
remain successful in terms of profitability. Competitive strategies help organizations
to develop and maintain a competitive edge in the market and to possess some
advantages relative to their competitors.
Organizations strive to create competitive advantage which is the ability of the firm to
outperform rivals on the primary performance goal of profitability. Competitive
advantage comes In a number of ways such as low cost production, market
differentiation and focus.
The ultimate aim of a firm is to make profit and to develop a distinctive competence
greater than its competitors. This depends mainly on the collective strength of the five
forces that determine industry attractiveness. These forces include the threats of new
entrants. the bargaining power of buyers. bargaining power of suppliers. the threat of
substitute products or services and rivalry among existing firms. The proper analysis
and management of five forces should lead a firm to determine its competitive
advantage, which is a basis for above average performance in the long run.
The study of' this research mainly looks at the competitive strategies employed by
Johnsondivcrscy E.A Company. This helps to explain how the company uses the
competitive strategies to maintain its market share and to respond to the changes and
challenges in the external environment. The study also looks at the challenges facing
the application of these strategies in the company.
The major objectives of this study were to determine the competitive strategies
employed by Johnsondiversey E. A Company and to determine challenges facing the
attainment of these strategies. The turbulent environment in which businesses operate
demand that the firms craft competitive strategies that are sustainable and assures
them of their market position.
Soap and detergent industries are faced with many challenges that must be urgently
addressed. These challenges include changing environmental requirements, unstable
price of fuel. political instabilities in certain geographic areas, increased competition,
trading blocks and increasing costs of raw materials among others. Johnsondiversey
E. A. Company manufactures and markets cleaning detergents mainly for commercial
purposes. The market share extends from local to regional markets which include
Kenya, Uganda, Nigeria. Ethiopia. Rwanda. Djibouti and Burundi.
The research was conducted through a case study design which intends to bring out
information regarding the competitive strategies employed by the company and
challenges facing their application.
The data for this study was obtained from primary and secondary sources. Primary
data was obtained through personal interview with chief executive officer and heads
of departments, using an interview guide with open ended questions. The secondary
data was obtained from secondary sources such as company journals. prospectus and
annual reports. The data was summarized according to study themes and a content
analysis technique was used to analyze the data.
The findings of this study show that Johnsondiversey E. A Company has formalized
vision and mission statement. The company employs competitive strategies of cost
leadership, differention and focus. Cost leadership strategies involve cost control
strategies in the company's value chain activities. Differentiation strategies used
include creating unique products and services that increase the perceived value of
products and services to customers. This can be seen in packaging and branding of
products, excellent customers services and good management of distribution channels.
focus strategy revolves around customers' categorization into various target market
niches. Each category of customers receive different quantity of products from the
company and have different market sizes depending on whether is international.
national or small independent businesses.
Limitations or this study are that. the study only focused on competitive strategies
used by the firm to maintain its market share, while there are other strategies that the
firm can use to improve its economic performance such as Total Quality
Management. Just in Time DeIivery and Efficiency.
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There was lack of adequate time to conduct oral interview from the respondents due
to their busy schedule. This caused delays in availing information in good time. Some
of the information was generalized leading to subjective conclusions of the results.
Another limitation was resource materials constraints experienced in obtaining the
secondary data. Some secondary resource materials did not have adequate information
required for the study and this Iimited the scope of the research.
Further studies should be done on competitive strategies used and challenges faced in
their application in the other soap and detergents manufacturing companies in the
consumer sector. Further studies should also look at other types of strategies used by
the company to respond to changes and challenges in the external environment. The
study was limited only to Johnsondiversey E. A. Company. The study focused on the
competitive strategies used by the firm and challenge facing the application of these
strategies.
The study concludes that the company applies competitive strategies of cost
leadership. differentiation and focus in its main value chain activities. The company
experience challenges as it implements the strategies. hence it needs serious and
urgent reforms to address the challenges so as to favourably compete locally.
regionally and globally. | en |
