Adoption of Diversification and Innovation Strategies by Total Kenya Limted

Abstract

Due to intense competition and demand for better products and services that meet the changing customers‟ needs, organizations need to diversify as well as remain innovative through systems and processes, generation of new ideas, products and also expand internally and externally. Diversification and innovation strategies are useful tools in ensuring organizations survive the turbulent and competitive environment in today‟s business arena. Oil industry in Kenya and all over the world has no option and hence this research was conducted to establish how Total Kenya Limited has adopted diversification and innovation strategies to ensure survival and remain competitive in this changing environment as well as grow revenues and market share in order to retain its number one position in the oil industry in Kenya. The research objectives were to determine the diversification and innovation strategies adopted by Total Kenya Limited as well as establish the drivers of diversification and innovation strategies adopted by the organization. The research was conducted through a case study and data was analyzed through content analysis. The data was collected from interviewees drawn from top management and supervisory levels and cutting across various departments within the organization. The findings of the research observed that Total Kenya Limited had embraced the diversification and innovation strategies and these strategies were incorporated within the objectives, mission and vision of the organization which has contributed to the growth of the company making it the biggest oil company in Kenya. The organization has continued to grow its product lines and services as well as expanding its reach in the region through its network of service stations and commercial customers. The research also observed that Total Kenya Limited has clear drivers of diversification and innovation strategies which are outlined by the policies entrenched in the organization. The research recommends that the organization require to continue venturing in diversification as well as innovative projects that will increase organization revenues, expand market share of the company and add value to all stakeholders since this is the only way that Total Kenya Limited can sustain its lead in the oil industry in the country as well as serve its customers with relevant products and services while enlarging shareholders wealth. The research cautions the management of the organization against adopting projects that are half baked thereby contributing unwarranted costs and exposing the company to risks that may deter achievement of the organization vision.