Strategic Responses Adopted by Mobile Phone Companies to Changes in the Telecommunication Industry

Abstract

Organisations are environment serving and thus have to align themselves well so as to cope with the ever changing business environment. This will involve the assessment of a firm’s internal capability and how well it is equipped to adapt and survive in the industry within which it operates. The analysis of a firm’s strategy involves the interaction between the strategic choice and its environmental context. The environment in which organizations operate is constantly changing with different factors influencing the organizations. The study sought to establish the strategic responses adopted by mobile phone companies in Kenya to the changes in the telecommunication industry. This research was studied through the use of a survey. All the companies were included in the study because of the small number. The researcher used both primary and secondary data. Primary data was collected using a questionnaire. Content analysis was used to analyze the qualitative data collected while descriptive methods were used to analyze quantitative data. The study concludes that in response to the changes in the telecommunication industry, the mobile phone companies in Kenya consider human capital as the key differentiation strategy. The companies also adopt research and development/innovation strategies in order to understand customer needs, tastes and preferences. The study further concludes that product differentiation strategies are also employed such as introduction of products for special application, use of customized/flexible product, market segmentation and forming alliances with banks to offer mobile banking products. The study recommends that the companies should engage in more cost reduction as a response to its competitors’ strategies whose products and services are much cheaper. The companies should deliver benefits that exceed those of competing products (differentiation advantage) to gain a competitive advantage over other firms.

Since this was a study on organizations from one industry, the data gathered might differ from strategic responses adopted by other organizations. The study faced both time and financial constraints. The study recommends that further research should be done on the strategic responses adopted by other companies to changes in their industry.