Competitive strategies adopted by Winnie’s pure health products Ltd in Kenya
Firms face competition in their operating environment, whose intensity, depends on five competitive forces that include threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes and intensity of rivalry. Competitive strategy aims to establish a profitable position against these forces. The concept of competitive strategy is critical to the survival and success of a firm in any industry because every firm faces competition and other challenges. This is what Winnie’s Pure Health Products Ltd and others in this segment, attempt to address. The company, which has been in existence for about ten years, and whose products are found in supermarkets, manufactures and packages natural foods. According to United States Department of Agriculture, natural foods refers to foods that are minimally processed, largely or completely free of artificial ingredients, preservatives, and other nonnaturally occurring chemicals; and as near to their whole natural state as possible. The company faces competition within its market segment and from other players in the food industry and hence has to employ competitive strategies to succeed. The company faces competition in its segment, in particular and other players in the food manufacturing industry, in general, in addition to the high energy costs experienced by manufacturers and the seasonal nature of inputs faced by food processers. The executive director of the company, counterfeits is a major challenge as fake producers have emerged, capitalizing on the popularity of established brands. The researcher has focused on a segment that has been ignored by researchers despite its critical role, in view of the health challenges posed by over processing and too much emphasis on taste by food manufacturers at the expense of nutrition, during the manufacturing process. Our natural inclination to sweet, fatty and salty food/drinks has made food processers add sugar/artificial sweeteners, fat and salt to virtually all the foods they offer. Nutritionists who uses Integrative Medicine in handling patients, have linked a host of lifestyle diseases such as cancer, diabetes and cardiovascular diseases and, partly to too much consumption of fatty, over-processed and sugar/salt-laden foods/and or drinks. Like all other players in the food manufacturing industry, Winnie’s Pure Health Products Ltd is facing competition, among other challenges. For it to survive and prosper in its market segment it must adopt appropriate competitive strategies. Nestle Kenya Ltd uses its capabilities, recruits and continuously trains staff to revitalize its human resource; engages in mentorship programmes to make knowledge accessible to staff and building positive organization culture and has done re-branding to attract those who have had the perception that their products were for the rich found out that creating and nurturing strong brands, skilled workforce through training and development and management of costs are effective competitive tools used by Nestle Kenya Ltd to counter competition. Service quality and customer relationship are optimally the most effective strategies used by players in the food and beverage industry as well as product differentiation, she added. Firms in the sugar manufacturing firms employed cost leadership strategies by eliminating non-essential activities in their value chains, outsourcing and competitively procuring their inputs. The firms also aspire to achieve economies of scale and use differentiation strategies via branding, distribution networks and customer service, says Okoth. Focus strategy, though limited due to few numbers in the targeted market, is also used. The researcher was unable to get any study on Winnie’s Pure Health Products Ltd. What competitive strategies are being adopted by Winnie’s Pure Health Products Ltd in Kenya? This study answered this question.