Application of Porter’s Competitive Strategies in the Matatu Transport Industry in Nairobi, Kenya

Abstract

In Nairobi Kenya, Matatu industry is one of the sectors that have experienced exponential growth in the recent past. Nairobi has the highest number of Matatu routes. Matatu operators face competition not only amongst themselves but also from other modes of transport available in the city, these include bus services such as Stagecoach and Citibus, taxis that are available throughout the city. With these intense levels of competition Matatu owners have come out with competitive strategies aimed to counter competition and thereby increase their chances of survival and also increase profitability. The study sought to find out and establish application of Porter’s competitive strategies in the Matatu transport industry in Nairobi, Kenya. It also sought to highlight the various challenges these firms face in strategy implementation.In trying to achieve the research objective, the researcher adopted a survey study approach, through administration of questionnaires to Matatu owners. The study found out that Matatu owners have taken deliberate moves to adequately respond to challenges they face in the operating environment. The study recommends that although Matatu firms have been successful in neutralising the challenges brought about by competition, the owners should take a pro-active role in the management of their Matatus and also be keen in recruiting and retaining qualified crew, i.e. drivers and touts.