| dc.description.abstract | This study sought to establish whether use of mobile applications yields competitive advantage in the form of customer retention. It was a cross sectional exploratory study that used data collected through a self-administered questionnaire. It was targeted at Kenya Medical Supplies Authority customers who were selected through a purposive sample of 10 facilities, after the public launch of the KEMSA e-mobile application. The sample was two respondents each from 10 facilities that had been selected for an intense training and adopted by KEMSA’s customer service team to ensure that these facilities were fully utilizing the features of the e-Mobile application. Due to the small size of respondents, data was analyzed using descriptive statistics. The relationship between key variable was analyzed using Pearson's Chi Square Test of Association. The study finds that there was a significant association between the perceptions of improved quality of service arising from the use of a mobile application, with the factor that influences the choice of drug supplier the most. A review of the responses revealed that 40% of the respondents indicated that there was no improvement in the quality of service as a result of the mobile application, and were also found to have indicated that efficiency in distribution was the factor that influenced their choice of drug supplier the most. In total, only 15% indicated the ease of ordering as the factor that influenced their decision the most, which was a proposed benefit of the mobile application. The majority of respondents also indicated no difference in their willingness to continue ordering from KEMSA as a result of the mobile application, with less than half indicating the they were ‘somewhat’ willing to remain with KEMSA because of the mobile application. The Value Chain and Competitive advantage introduced by Porter (1985) points to the fact that competitive advantage arises from a firm’s ability to minimize its raw material and production costs, and maximize efficiency in its production and distribution. In other words, it must achieve best value in all its value chain processes in order to maximize the competitive advantage. The emphasis on the whole value chain seems to infer that inefficiency or high costs in any one of the value chain processes could adversely affect the overall competitive advantage gained by a firm. In the case of drug distribution firms like KEMSA, it is apparent that efficiency in distribution significantly influences the customer’s choice of drug supplier, and hence the firm’s ability to compete and to realize a competitive advantage. Additional studies in context of other market factors such as price of commodities may help to further isolate why the introduction of a mobile application is not seen to yield significant competitive advantage. There were several limitations during this study including time, funds, a delayed roll out of the mobile application, as well as a limited sample size. The study therefore recommends reviewing of the entire supply chain process to ensure that competitive gains are retained, such that a supporting technology like a mobile application can yield the expected competitive advantage. This is especially in view of the changing dynamics in Kenya’s medical sector and with the devolution of both government services and procurement now in high momentum. It is expected that County governments will have greater control of the spending or purchase decisions, unlike in the past where the central government procured through KEMSA for all public health facilities. This will expose KEMSA to increased competition, thus a need to review the supply chain processes in order to gain and retain a competitive advantage.
Key Words: Competitive Advantage, Mobile Applications, Pharmaceutical Industry | en |
