Factors influencing competitive strategies adopted by delta energy systems limited on performance in Kenya

Abstract

The modern business environment has become turbulent and very competitive to the extent that very few organizations are able to sustain their competitiveness in the long run due to the unpredictability of the environment. Strategic deployment of competitive strategies is a fundamental function for every organization. Studies done on competitive strategies indicate that the studies have given attention to contexts other than energy sector and in particular the Delta Energy Systems Company. This is the gap that this study sought to fill by examining the competitive strategies adopted by Delta Energy Systems Ltd. Specifically, the study was out to determine the impact of competitive strategies on performance of Delta Energy Systems Ltd and to establish factors which have influenced the choice of the particular competitive strategies by Delta Energy Systems Limited. The research design used for this study was a case study. Both primary and secondary data were used in this study. To collect primary data, an interview guide was administered to senior managers at Delta Energy Systems Ltd through in-depth personal interviews guided by the open-ended questions in the interview guide. Secondary data was obtained from existing company records.Data collected was analyzed through content analysis. Findings indicated that Delta Energy Systems Ltd is a company with a broad range of competitive strategies adopted at different levels of operation. ocean strategy had in particular been adopted to create uncontested market space and make contestants irrelevant. This has been complimented with product development, product profile diversification and internal based strategies as well as market development. The study revealed that there were various factors which influence the adoption of competitive strategies by Delta Energy Systems Ltd. The culture of the organization was a major factor influencing selection and adoption strategies in the power energy solutions sector. Other factors include resource endowment, industry competition as well as organizational structure. It was noted that provision of unique products and services has positively affected performance of Delta Energy Systems Ltd by enabling it gain more customers, ensuring customer satisfaction; building more revenue as well as crafting unique solutions against identified market gaps. In addition, by having well informed logistic and procurement, time leads for supply and costs are minimized. The research made the conclusion that the essence of strategy formulation is coping with competition. Power solution companies concentrates on providing a unique product or service in order to differentiate themselves with their competitors. The study among other recommendations suggests that the firms should adopt market penetration and the best way to achieve this is by gaining competitors' customers.