| dc.description.abstract | Growth means change and proactive change is essential in a dynamic business
environment. The growth of a business firm is similar to that of a human being who
passes through the stages of infancy, childhood, adulthood and maturity. Growth Strategy
refers to a strategic plan formulated and implemented for expanding firm’s business.
Businesses therefore engage in growth and expansion strategies that will enable them to
respond to the environmental challenges in order to gain competitive advantage over their
competitors, increase market share and indeed for continued survival in the market. Firms
adopt various strategies based on the goals and objectives. The different strategies have
different costs and related benefits that influence adoption. The medical insurance firms
are not an exception to this regard. The increasing significance of growth strategies in
these firms therefore is of paramount importance to the development of sustainable
competitive advantage. The overall objective of the study was to establish the business
growth strategies applied by medical insurance organizations in Kenya. This study was
guided and informed by various theoretical and literature reviews. This was a crosssectional
survey research. The study used primary data which was collected using a semistructured
questionnaire. Descriptive statistics data analysis methods were employed to
analyze the quantitative data obtained. The study had a response rate of 81.5%. The
findings revealed that business growth strategies that are adopted by medical insurance
firms in Kenya include diversification, product development and market development.
These firms incorporate new features into existing products and introduce new products
as forms of product development strategies. For market penetration they persistently
advertise their medical insurance products and introduce new medical facilities. The
adoption of business growth strategies in medical insurance firms in Kenya is influenced
by availability of business opportunity, the firms’ financial capacity, customer demands
and competition. Price reduction, opening new medical insurance offices in other
countries and diversification through medical tourism and conferencing seem not to be
business growth strategies adopted by the medical insurance firms in Kenya. In light of
the findings, the study recommends that these firms should focus more on market
research and development so as to have a strong base for innovation and sustainable
growth. These companies should also emphasis on diversification strategies. | |
