Competitive Strategies and Performance at Five Forty Aviation Limited Kenya

Abstract

Changes in the business environment occasioned by development in information communication and technology and globalization have called on organizations to rethink their strategies in order to maintain the competitiveness. Competitive strategy is a long-term plan of an organization to enable it gain a competitive advantage over its competitors. The ever-changing business environment has increasingly made it difficult for firms to operate due different factors ranging from: technological innovations, economic factors and competition. Organizations need to align their operations in the changing business industries due to increased competition. The key objective of this study was to determine the effect of competitive strategies on performance of Five Forty Aviation Limited Kenya. This study was guided by Resource Based view theory and advanced by Dynamic capabilities theory. This study was accomplished through descriptive case study design because the focus in on one organization. Case study was used due to its deeper understanding of the inside organization and keenly illustrated the competitive strategies adopted by the flight 540. Primary data was collected by use of interview guides while data collection sheets was used to collect secondary data. Secondary data was collected on a five-year time horizon; 2013-2018. Content analysis was used in analyzing qualitative data collected from open ended questions. For quantitative data on performance, the study employed descriptive statistics including means and standard deviations and graphs that showed trends. The study established Fly 540 had adopted the following cost cutting measures; their firm had adopted a long-term mindset in pursuing sustainable cost optimization, fly 540 made a clear and realistic target, they leveraged their existing client base and ensured that their staffs were productive and worked efficiently. The study established that Fly 540 had increased the life cycle of its customers by focusing on its market segment. The study pointed out that Fly 540 embraced wide variety of mechanisms for seeking and learning customers’ needs. Fly 540 products and services designs were based on meeting the needs of the customers. The airline has focused on offering cheap and accessible airlines that are easily accessible and affordable. The study concludes that Fly 540 had earned economies of scale. The study concludes that Fly 540 provided cheap and affordable flight prices as compared to the other airlines. The study further concludes that Fly 540 product and services design were based on meeting the needs of the customers. Fly 540 offered many local destinations that other airlines didn’t offer. Fly 540 introduced new routes as compared to the competitors and they were effective in their service delivery. Fly 540 products and services designs were based on meeting the needs of the customers. Fly 540 embraced wide varieties of mechanisms for seeking and learning customers’ needs and expectation. The study recommends that Fly 540 ought to find strategies in order to earn economies of scale. Fly 540 ought to embrace technology to minimize costs and partner with suppliers to reduce cost of inputs while maximizing output. Fly 540 ought to offer and improves it services by offering many local destinations that other airlines don’t offer. Fly 540 ought to use and formulate unique advertisements techniques that for improved market edge. Fly 540 product and services design ought to be based on meeting the needs of the customers. Fly 540 ought to embrace wide variety of mechanisms for seeking and learning customers’ needs and expectation.