Competitive Strategies and Implementation Challenges by Kenya Orient Insurance Company

Abstract

There has been notable increase in competition within the insurance industry in Kenya. With competition remaining high within the insurance industry it is necessary for organizations within the industry to adopt competitive strategies so as to gain a higher level of competitive advantage over other firms within the industry. Strategy adoption and implementation is therefore very important for any company that is operating in a highly competitive industry. Competitive strategies are necessary for companies that are heavily saturated with customers. The insurance industry in Kenya is growing and hence organizations need to come up with competitive strategies that will enable them to remain competitive. Due to the nature of the insurance business, insurance companies that succeed should be able to gain competitive advantage over their competitors. The objective of this study was to determine the competitive strategies adopted by Kenya Orient and their implementation challenges. Kenya Orient is operating in a highly competitive industry that is characterized by limited number of customers’ and therefore needs to adopt competitive strategies in order for them to maintain their customers and gain competitive advantage over their competitors. The main theories covered under the study were ; resource based view of the firm ,the market based view of the firm and the knowledge based view of the firm that have been discussed as theories that enable organizations gain competitive advantage. A case study approach was used where data was collected using an interview guide. Secondary data inform of past interviews and publications was also used to supplement primary data collected. Qualitative data was collected and an analysis done using the content analysis technique. The results of the study indicated that the organization uses various competitive strategies in order for them to gain competitive advantage over their competitors. The competitive strategies used are; product differentiation, focus and niche, cost leadership, product development, market penetration and use of technology. Though the strategies adopted are expected to help the organization in gaining competitive advantage the organization still faces some challenges during implementation that hinder the effectiveness and success of the competitive strategies adopted. The study revealed that the challenges faced during strategy implementation are; inadequate support structure, resistance to change and time constraint. The challenges faced will help the organization identify their weak points and therefore improve on such areas during planning when implementing new strategies. The recommendation from the study is that Kenya Orient Insurance Limited needs to work on the challenges that they have experienced during strategy implementation so that they can ensure that all strategies employed will be successful and effective. The challenges experienced during implementation have been seen to hinder the effectiveness of the strategy and hence the company working on them will lead to effective implementation of competitive strategies that will lead to competitive advantage. The study concludes that competitive advantage is achieved when companies adopt competitive strategies in their business. When organizations effectively adopt and implement competitive strategies then they are able to acquire competitive advantage and are able to maintain their customer base.