| dc.description.abstract | The on-gomg econonuc reforms have created a fundamental shift in the
environment in which firms operate. The major outcome of the reforms is
liberalisation of trade. Firms m Kenya are now operating m a competitive
environment.
The study set out to document the strategic responses of the motor vehicle
franchise holders in Kenya to the changed environmental conditions. To achieve this,
the objectives of the study were:
To determine whether the firms have changed their missions, goals, objectives,
policies and plans in response to competition.
To determine what adjustments in product, price, promotion, distribution, cost
structures, research and development, and market predispositions the firms
have adopted in response to competition.
Primary data was collected using open-ended and closed-ended questionnaires
from a sample of 10 firms which had established in Kenva before the industry was
liberalised. The data was thereafter analysed using talbles, mean scores, and
percentages.
The analysis revealed that in their missions, the firms have made changes in
their principal technologies by investing in new equipment so as to make competitive
products. They have also changed their basic products by adding new features.
Initiatives to penetrate new market niches was also revealed. The firms' philosophies
are now more specific and are directed towards enhancing excellence in customer
service.
The firms have made changes in the ranking of their goals. Most firms now
rank survival to be the most important goal unlike before liberalisation when
profitability was more important. The firms have changed their policies, and the policy
that almost all the firms have changed is the marketing policy in which more
aggressi ve marketing is now adopted.
In planning, the firms now adopt participative management than was before
liberalisation. Ideas from all levels of staff are now welcome. there are frequent
interactions to review the plans and communication of plans is now enhanced in most
of the organisations to ensure the understanding of the plans developed.
The franchise holders have also made adjustments in their strategic variables
either moderately or significantly. The most adjusted strategies are the product
strategies in which most firms have significantly improved their product qualities,
features and offering of a variety of 'models. In promotion strategies, advertising
expenditures have been increased considerably. In research and development, the
firms have very much increased information gathering on competitors and customer
needs and efforts are directed to satisfy the customers' needs. In cost structure
strategies, the analysis revealed significant improvement in technology and capital
- . investment in information technology. The other strategies such as pricing and
distribution have been moderately adjusted. | en |
