| dc.description.abstract | Organizations are faced with a myriad of challenges emanating from the environment. In order for them to survive, strategies have to be devised to respond to the forces that threaten to halt survival. Companies that do not respond appropriately are usually phased out of business. Companies respond to the challenges in terms of devising cost cutting strategies, adopting new technologies, competing on low prices or on high quality products or services, differentiating the market or focus strategies. Kenya Airways has had its share of environmental impact from various sources. Competition has been stiff since liberalization of the Kenyan economy.
The purpose of the study was to determine the environmental changes facing Kenya Airways and to identify the responses adopted by Kenya Airways to overcome these challenges. This was a case study. The researcher used an interview guide as the primary data collection instrument. The interview guide was administered using face to face interviews to the directors of departments and other employees in management positions at Kenya Airways. Data collected was analyzed based on content analysis.
The study found that the operating environment in the airline industry is very dynamic and volatile. The researcher also found that KQ was faced by challenges such as global financial crisis (inflation). The company has been affected by competition due to entry of low cost local carriers and entry of international carriers from the Middle East. Social factors also affected the business operations at KQ such as change in lifestyle and increasing demand from customers for quality. The study also revealed that there had been changes in regulation policies that had affected operations and also due to political climate there were such challenges as high level barriers to entry in some destinations and low travel bookings due to post election violence.
The study further concludes that Kenya Airways had adopted various measures to respond to the environmental changes such as expansion into new destinations, cutting back on excess capacity in low-demand periods, maximizing on high-demand periods, upgrading the company equipment, operation cost reduction, restructuring and outsourcing of the noncore logistics. The study recommends that Kenya Airways should engage in more cost reduction as a response to its competitors' strategies whose products and services are much cheaper. | en_US |
