Strategic Responses by Tuskys Supermarket to Changing Competitive Environment
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Date
2010Author
Gacheri, Annceta
Type
ThesisLanguage
en_USMetadata
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Today's organizations engaging in businesses have to contend with the dynamics of a changing competitive environment. Competition is one of the environmental influences to a business. It exerts pressure on firms to be proactive and to formulate successful strategies that facilitate proactive response to perceived and actual changes in the competitive environment. Strategic decisions are ones that are aimed at differentiating an organization from its competitors in a way that is sustainable in the future. In a given business environment an appropriate and competent strategic capability is a key basis for such an effective strategic response (Ansoff, 1979 and Hambrick, 1982).
The research is a case study on Tuskys Supermarket, a retail chain in the Kenyan market. The ever-changing market presents continuing challenges to retailers. First and foremost, retailers must recognize the strong implications of a buyers' market (Lewison, 1994). Customers are being offered a wide choice of shopping experiences, but no one operation can capture them. Therefore, it is incumbent upon management to define their target market and direct their energies toward solving that specific market's problems. The aim of this study was to establish the strategic responses that Tuskys Supermarket had adopted in the face of the current competitive environment and the success of the strategies adopted by the supermarket due to the competitive environment.
The study was carried out through a case study design of Tuskys Supermarket where primary data was collected using an interview guide. Personal interviews were done with Tuskys Supermarket Operation's Manager and Nairobi Branch Managers using an interview guide. Content analysis technique was used to analyze the data. The study found out that there were several environmental factors that affect the operations of the business but the most significant factor was competition. The firm had reacted to competition and to the environmental changes in general using strategic responses that had been very successful.
The study recommends managers to be on the lookout for any possible factors that would have an implication on the operation of the company and respond appropriately. So far the strategic responses had been successful but more needs to be done to ensure that Tuskys supermarket becomes the market leader in the Kenya's retail industry by having a sustainable long term competitive advantage.
Publisher
University of Nairobi, Kenya