Strategies employed by beer manufacturing companies in Kenya to achieve competitive advantage
Abstract
Beer market growth is flat due to economic hardships that have continued to affect beer
industry, coupled with high taxes, stiff competition from other beverage sub sectors and
low consumer spending. How a firm chooses to position itself relative to its competitors
in the market place, will greatly influence the success of this firm. The study aimed to
determine the strategies employed by beer manufacturing companies in Kenya. A survey
approach was adopted and the primary data was collected by use of questionnaires. A
total of 10 out of 14 questionnaires administered were returned. The results were then
presented in the form of tables and were analyzed in order to get a view of the strategies
employed by the different firms. The beer manufacturing companies in Kenya viewed
resources and strategies as being important and key to achieving competitive advantage.
These companies indicated that the resources and capabilities they controlled were fully
utilized and they invested in resources and capabilities that ensured sustainable
competitive advantage. The beer manufacturing companies in Kenya use cost leadership
strategies, since they attempt to attract the market dominated by cheap home brews and
illicit spirits and low consumer spending brought about by economic hardship. On the
other hand, they also differentiate to attract the lucrative beer market with premium
brands. This segment has seen a lot of activity in recent years with international brands
ploughing millions of dollars to compete for the market share. Positive forecast in the
coming years has seen investment in resources and capabilities as companies position
themselves to take advantage of the opportunities.
Citation
Master Of Business Administration (mba) Degree, School Of Business, University Of Nairobi, 2013Publisher
University of Nairobi, School of business,