Strategic Responses to External Environmental Dynamism of Branding of Vision Media Limited Kenya

Abstract

The study had sought to establish the strategic responses adopted by Vision Media Limited, concerning the dynamic external environment in Kenya. The research was under pinned by resource based view theory, open systems theory and chaos theory. The research design adopted was case study research design. The case selected for the study was Vision Media Limited that is branding firm in Kenya. The unit of data analysis is the top management that is involved in strategy crafting and implementation. The study collected the needed data using interview schedule. The managers selected involved in an interview based on already prepared interview schedule. Short notes were taken during the interview process. The data collected was transcribed and analysed using content analysis. The process involved categorisation of the data into various themes of interest. The themes were based on study objective including the external environmental changes, the strategic responses to external environmental changes and challenges in creating and implementing strategic responses. The data was presented in the form of the thematic areas identified and related to empirical literature to identify point of intersection and differences with empirical literature. Regarding environmental dynamism, the study established that technological changes have led to some products becoming obsolete. Competitors have been employing price wars by cutting on cost of services and products to wrestle customers away. Various regulations including taxation, licenses and permits have increased cost of doing business. Inflation has seen prices of products rise making them out of reach of most consumers in the recent past. Change in the Nairobi county governments has seen new regulations and some old licences cancelled. Regarding response to various environmental dynamism. The study revealed that Vision Media Limited has employed cost cutting, outsourcing some operations to its competitors, offering differentiated products, providing promotional items, sourcing of key supplies from lower prices providers. Regarding challenges associated implementing strategic responses; the study revealed that the strategy of entering into partnership with various suppliers has faced challenges as some international suppliers have since set up stores within Nairobi where other branding firms can also access the said materials. Further, the strategy of outsourcing some operations to its competitors has seen some competitors wrestling away some clients. The study also revealed that responses to change in technology like outsourcing some printing work and leasing some equipment has exposed the firm to unreliability and dependability. Finally, the study revealed that countering government regulation was not possible for an individual business and the collective action through private sector alliance has not born much fruits. The recommends that management of vision media limited to have accurate external environmental scanning to have adequate understanding of the change in external forces before responding through strategies. Further, the study suggest to Vision Media limited to reconsider its outsourcing strategy by only outsourcing non critical tasks so that the firm can concentrate on critical tasks to minimise exposure to risk of unreliable services from outside firms. The study also recommend to Vision Media limited to consider focus strategy where the business targets a specific segment of the market than trying to satisfy all customers under the corporate segmentation.