Strategic collaboration among the retail Supermarkets in Nairobi Kenya
Abstract
The aim of the research was to establish the extent of strategic collaborations
among the retail supermarket in Nairobi, Kenya, the factors that influence these
collaborations and the benefits of engaging in strategic collaborations. A sample of
63 supermarkets was chosen from the list of 134 supermarkets. Structured
questionnaires were administered through drop and pick later method. The response
rate was about 63% that is 40 out of 63 questionnaires were returned dully filled.
Global competition takes place even in ‘local’ businesses; partnerships have
become central to competitive success in the fast changing Global markets. Many
of the skills and resources essential for the future prosperity of a company lie
outside the firm’s boundaries and outside management’s direct control hence
strategic partnerships are not an option but a necessity (Doz and Hamel 1998).The
findings indicate that collaboration was practised among the retail super markets
and to a large extent with suppliers and the large supermarkets. These
collaborations were mainly influenced by the need for market power, mutual
benefit, source of competitive advantage, increase efficiency, continuous
development, pressure from consumer groups and advanced technology.
Technological advancement is rapid and costly and requires investment hence
collaborations can cushion partners against costly investments. The benefits to
strategic collaboration are varied and the highest ratings from respondents were
improved flexibility, improved resource utilization and persuading retailers to give
special displays. From the findings, strategic collaboration with the small and
medium supermarkets was only practised to a very small extent almost nil. It is
further recommended that the small supermarkets should create a niche for
themselves so that they can attract the large supermarkets to partner with them
more. Due to time and cost constraints, the study could not be carried out
nationwide but was carried out on a small sampled population in Nairobi. The study
also targeted to get responses from the General Managers of employees of
equivalent position but most of them delegated to their juniors. Collaboration with
authorities such as Government is essential for inclusivity of all stakeholders in
friendly policy formulations and implementation. The study findings indicate a
considerable level of strategic collaboration with Government. However, the study
could not establish whether this collaboration with retailers and Government as
supplier, customer or in policy making. Further research should be carried out to
establish the forms of collaboration between the retailers and the Government.
Publisher
University of Nairobi
Description
Thesis