Response Strategies by Cyber Cafes in Nairobi to Changes in the Kenyan Internet Market

Abstract

Businesses operate within an unpredictable environment and may have less control in it. They need to adopt appropriate response strategies and remodel in order to survive in this turbulent environment. Internet Cyber cafes in Kenya have faced various challenges for the past few years. The dynamic dimensions of the Internet environment together with the rising Internet technological trends has created one of the most challenging business environments for cyber cafes in Nairobi. The main goal of this research was to investigate various dynamic changes in the Kenyan Internet market that have occurred and the response strategies that cyber cafes have adopted to deal with these changes. The research adopted a survey study. This involved use of questionnaires which were administered to various cyber cafes owners in Nairobi. Secondary data was collected from various articles and publications that referenced the subject study. Descriptive analysis was used to analyze data. The study revealed that the Kenyan Internet market has changed drastically with new Internet technologies that have majorly have a direct impact on cyber cafes in Nairobi. The rising use of Internet enabled phones have led to a decline of the number of customers visiting cyber cafes in Nairobi. Furthermore, the emerging rise of the giant Internet Service providers has as well had an impact on Internet cyber cafes in Nairobi, since ISP’s are now offering home internet connection to home users and the use of Internet enabled phones has been identified as one the biggest factor that has largely affected the Internet cafes industry. The study further revealed that cyber cafes have as well tried to lower their browsing rates but this has not done enough to attract more customers. The findings from the study indicated that after a successful remodeling and stretching their revenue streams are some of the response strategies that have been adopted by Cyber cafes in Nairobi that have likely helped them to stay ahead in business. Creativity and innovation was noted to be the most adopted response strategy by a majority of cyber cafes, whereby most of them have gone to the extent of offering value added services such as government online services, Mpesa services, eatery services and as well improved infrastructure facility so as to attract more customers in an effort to differentiate themselves from others.