Competitive strategies adopted by second hand motor vehicle dealers in Nairobi, Kenya
Abstract
The objective of this study was to establish the competitive strategies used by
second hand motor vehicle dealers to cope with increased competition in the
second hand motor industry. To achieve the objective a survey was conducted,
subsequently the shareholders and managers of the second hand motor dealer
showrooms were asked to complete a questionnaire. 54 out of the targeted 66
respondents completed and returned the study questionnaire representing 82%
response rate.
It was found that 67% of the surveyed second hand motor dealer showrooms
have been in operation for less than five years, 89% of them are limited
companies and 96% of the surveyed respondents were aware that the industry
faced stiff competition. It was found that email circulation of cars on offer to
friends, sale of cheap cars, stocking of unique cars, offering of value adding
services like car cleaning and fixing alarms are particularly popular competitive
strategies with second hand motor dealers, they are used to a great extent by the
surveyed second hand motor dealers.
The study established that Porter‟s generic strategies are moderately used. The
second hand motor dealers use the cost leadership, focus and differentiation
strategies interchangeably. On factors influencing competitiveness, hiring
competent staff is the strategy that came out very to be very popular.
Citation
Mary P. Wacuka (2008). Competitive Strategies Adopted By Second Hand Motor Vehicle Dealers In Nairobi, Kenya. Masters In Business AdministrationPublisher
University of Nairobi