A study of the competitive advantages, obstacles and the extent of implementation of E-commerce within the Kenya Export Processing Zone

Abstract

An organization creates value by performing a series of activities identified as the value chain (Porter; 1980). In addition to an. organisations own value creating activities, the value system also includes the activities of the organisation's upstream suppliers and downstream channel members. To achieve a competitive advantage, the firm must perform one or more value creating activities in a way that creates more overall value than its competitors. Superior value is created through lower costs or superior benefits to the customers (Porter, 1980). Implementation of e-commerce within an organization can provide a great opportunity for the organisation to streamline its operations. It is anticipated that such an organization can achieve competitive edge over its rivals through reduced costs, efficient productivity and enhanced marketing (May; 2000). This study highlights the competitive advantages, which can be derived by firms within the Kenyan Export Processing Zone through the implementation of an e-commerce strategy vis-a-vis the current status quo within the firms and the response of the various firms on the implications of implementing e-commerce. The study will make use of primary data collected through a questionnaire administered to persons who are best placed to provide information concerning the operations of the EPZ firms and existing literature from secondary sources.