| dc.description.abstract | The alignment between strategy and environment lies at the centre of strategic management. Organizations are faced with turbulence and stiff competition in their external environment. Correct alignment helps a firm maximize the economic benefits from resources, improve the effectiveness of operations, and boost the fulfillment of its strategic goals. The competitive environment is affected by market structure and profitability; the intensity of competitive rivalry and the degree of differentiation.
The telecommunication industry today is characterized by an ever changing operating environment characterized by stiff competition among the major players as each seeks to establish itself in the market. The purpose of this study was to find out the various strategic responses applied by Safaricorn in. responding to the competitive environment. This research was conducted through a case study since it was a research on one organization. Both primary and secondary data were used for the study. Interview guides were administered among senior managers in Safaricorn Ltd to collect primary data. Being a case study, conceptual content analysis was most useful in analyzing the data.
From the study findings, the researcher concludes that the challenges in the external environment that affect the operations of the organisation were such as global financial crisis, competition from firms within the telecommunication industry, political instability, low technological advancements and registration from the regulator (CCK). The study also concludes that the responses to the competitive environment that have led to fruitful results were strong financial strategies, innovation, invention, strategies, research and development ventures and investment in technology strategies. Strategic responses adopted by Safaricom are both proactive and reactive to the changes in the company's external environment.
The study recommends that although there Safaricom has been successful in neutralizing the challenges brought about by competition in the Telecommunication industry, Safaricom should engage in more cost reduction as a response to its competitors' strategies whose products and services are much cheaper. Besides providing its services and products at lower cost (cost advantage), Safaricom should deliver benefits that exceed those of competing products (differentiation advantage) to gain a competitive advantage over other firms.
Key words: strategies, competitive environment, response | en_US |
