Managers’ Perception on Strategic Positioning and Competitive Advantage of Telecommunication Firms in Kenya

Abstract

Market share is decreasing owing to increased rivalry among companies as a result of globalization and the growth of constantly expanding and rising countries. Organizational survival is getting more challenging due to a growing propensity in a competitive marketplace. Strategic solutions are being sought by organizations in order to maintain and enhance company efficiency. They are re-engineering and restructuring procedures in order to become a more capable and enthusiastic leader. The aim of this research was to investigate the impact of strategic positioning on competitive advantage of mobile telecommunication companies in Kenya. Stratified random sampling was used to select a sample of 50 participants from a population of 89 respondents. Questionnaires were utilized to gather primary data. A response rate of 82.6% was obtained. Analysis was done by use of percentages, frequencies, mean and regression analysis. Findings of the research showed that mobile telecommunication companies have adopted strategic positioning strategies namely differentiation positioning, cost positioning, focus positioning and brand positioning to a great extent. The research utilized inferential statistics multiple linear regression analyses. The study findings recorded a co-efficient of determination of 0.141% implying that differentiation positioning, cost positioning, focus positioning and brand positioning explain 14.1% of competitive advantage. The findings revealed that the model entailing the selected strategic positioning strategies significantly predicts competitive advantage 0.00 ≤0.05. The results of the research revealed that cost positioning, focus positioning and brand positioning have a positive significant and positive effect on competitive advantage. On the other hand, a negative but insignificant relationship was found to exist between differentiation positioning and competitive advantage by mobile telecommunication companies. The study recommends top management of telecommunication companies to invest in strategic positioning strategies to realize competitive advantage. Mobile telecommunication companies should make a deliberate effort to innovate products for specific market niches and prioritize on sale of goods and services in such markets.