Competitive strategies adopted by Multichoice Kenya Limited
Abstract
Strategy is the long term plan for an organization to stay in business. The objective of
the study was to establish the competitive strategies adopted by MultiChoice Kenya
Ltd and to establish and how these strategies lead to sustained competitive advantage.
To achieve these objectives, this study adopted a case study research design in which
the organization of study was MultiChoice Kenya Ltd. The data was collected by
way of face to face and phone interviews. The data was then analyzed using content
analysis. The study established that MultiChoice Kenya Ltd has managed to
proactively as well as reactively execute various strategies that have enabled them to
compete effectively in the turbulent and diverse Kenyan pay TV industry. The
industry has seen increased competition which has realized a drop in profitability as
the customers have to be shared with the new market entrants most of whom are
coming in with a pricing strategy. This has resulted to a decline in revenues and
struggle for and sometimes loss of programme rights. MultiChoice Kenya Ltd has
reacted to the market challenges by putting in place various strategies. It is notable
that they employed a general manager who has a wealth of experience to take the
organization to the next level in the dynamic pay TV market. The organization has
adopted strategies aimed at improving customer satisfaction by introducing a new
range of channels, opening two new branches in Nairobi to decentralize the services,
ensuring a well-developed dealership network in up country, improved sales and
marketing strategy by partnering with the large chain stores like Uchumi, Nakumatt,
Naivas, and Ukwala supermarkets to push sales, embracing loyalty programmes and
most importantly MultiChoice Kenya Ltd rides on the added advantage of its partners
strong brands, notably Dstv, M-Net, SuperSport, Dstv Mobile and Dstv Online. The
study reveals that the strategies adopted by MultiChoice Kenya Ltd are relevant in
exploiting the opportunities and overcoming the challenges in the market. The study
just like any other had its limitations, notably, the time for interviews with the
respondents was hardly enough given the nature of the respondent’s jobs. There was
evident withholding of information by the respondents in an effort not to compromise
the competitive position of the organization in the market. Related to the study and
notably outside the scope, the following subjects should be given consideration for
further research; pay TV content rights and bidding process and the possibility of
hyper competition in the Kenyan pay TV market.
Citation
Master Of Business Administration (mba), School Of Business, University Of Nairobi,2013Publisher
School of business,