Effects of competitive strategies on performance of express connections limited in Kenya
Abstract
Competitive strategy is concerns with what a firm is doing in order to gain a sustainable
competitive advantage. The stiff competition among the public transport companies and
the entry of other players into the industry following the government plan to ban on
fourteen seater passenger vehicles necessitate the design of competitive strategies to
guarantee their performance. This study sought to determine the influence of competitive
strategies on performance of Express Company Limited in Kenya. The study was guided
by the following objectives; to determine the competitive strategies adopted and the
effects of competitive strategies on performance of express connections Kenya Limited.
The research used a case study approach to give an in-depth understanding of the
competitive strategies on performance of Express Connections Limited. The study used
both primary and secondary data where primary data was collected using an interview
guide and secondary data was collected from audited financial reports and other
publications at Express Connections Limited. Content analysis was used to analyze this
data collected from the interviewees. The study established that Express Connections
Limited adopted a number of competitive strategies; standard pricing was being used
within the respective timings for instance peak and off peak differentiation, usage of
standard colors so as to identify the fleet and the creation of a sister company to help
build the bus bodies and in repair of the vehicles and segmented market on the basis of
routes being covered by the fleets and zones in order to ensure effective coverage of all
routes. The study concludes that service quality and customer relationship are the most
effective competitive strategy used by Express Connections Limited as well as
differentiation of services to suit their clients. The study recommended that the company
continue investing and coming up with unique services so that they can differentiate
themselves and at the same time continue innovating services which will compete with
other companies’ and do aggressive marketing in order to change the perception which
the customers have regarding the pricing. The study faced a limitation as regards to
interviewee’s confidence that the information provided would not be misused but used
for the purpose for which it was meant. The study was a case study of one company and
therefore it may not be expanded to include more companies. Therefore the applications
of the study findings are limited to one company. The study recommends that, further
research could be expanded to include other companies in the transport industry in order
to make a comprehensive conclusion. At the same time the same study should be carried
on other industries especially in the manufacturing sector, to enhance comparison.
Publisher
University of Nairobi