Competitive Strategies Adopted by Crown Berger (K) Ltd to Cope With Competition in the Kenyan Paint Industry

Abstract

The study was designed to investigate the competitive strategies adopted by Crown Berger to cope with issues arising out of competition in paint manufacturing industry. The study was a descriptive survey conducted at Crown Berger head office in Nairobi. A census of all 45 employees and managers at the head office was undertaken. Questionnaires were administered on 40 employees while 5 interviews were conducted with the managers. The data was analysed using content and thematic analysis. The data was presented in narrative form. The study found that Crown Berger Ltd is facing intense competition from local and foreign players in the paint manufacturing industry. The study found that there was competition on four main fronts- pricing, promotion, production flexibility and innovation. The study found that the competitive forces have created challenges in the operation of paint makers as they fight for quality raw materials, employees and technology. The study found that Crown Berger has adopted a number of competitive strategies including building a strong brand, quality improvement, product innovation, optimising the distribution channels, advertising, employee training and undertaking corporate social responsibility activities with long term benefits to the firm. The study findings show that the firm does not follow clearly defined competitive strategies but has adopted combination of generic strategies. The study recommends that Crown continue being proactive through collection and analysis of data from the market tailor their efforts according to the institution’s strategic objective, institutional capacity and available financial resources. The study also recommends on the need for Crown Berger to intensify its research and development efforts to be able to respond to local markets and stop relying on parent company strategies.