Strategic Responses to Dynamic Competitive Environment by the East African Portland Cement Company Limited, Kenya

Abstract

Organizations operate in rapidly changing environments and businesses are forced to constantly align themselves to this changing environment in order to survive. Organizations that fail to continuously scan its competitive environment and design appropriate strategies may find it difficult to sustain its competitiveness. This study was on the strategic responses to the dynamic competitive environment by the East African Portland Cement company Ltd. EAPCC, like all other organizations, operates in similarly rapidly changing competitive environment. The cement industry has been changing with consolidation in he developed market and increasing competition in the developing markets with new players coming for the case of Kenya. EAPCC has witnessed a serious erosion of its market share from a high of 37% a decade a half ago to today’s’ 14%. The company has been forced to craft and adopt responses to this changing competitive environment. The specific objective of the study was to establish the strategic responses deployed by the EAPCC in the dynamic competitive environment. The case study method was adopted since it provides very detailed information about a particular subject that it would not be possible to acquire through another method. The study used primary data which was collected from the heads of departments of EAPCC through face to face interview. The data collected was then analyzed through content analysis method due to its suitability to analyze data collected from Open-ended questions which are more difficult to code. The study established that the main changes in the competitive environment have been influx of new players in the market, a rapidly expanding economy, and forex rate fluctuations. The study also established that EAPCC adopted operational efficiency strategy, outsourcing and diversification strategies in response to these changes in the competitive environment. The study recommends that EAPCC focuses in innovation through R&D and also adopt expansion strategies. The policy makers will use the study to formulate policies relevant to manufacturing firms, especially on regional economic groupings. The study also serves as a source of reference for future scholars and practitioners besides providing areas of further research on strategic responses to dynamic competitive environments