Competitive strategies adopted by Multichoice Kenya Limited
Strategy is the long term plan for an organization to stay in business. The objective of the study was to establish the competitive strategies adopted by MultiChoice Kenya Ltd and to establish and how these strategies lead to sustained competitive advantage. To achieve these objectives, this study adopted a case study research design in which the organization of study was MultiChoice Kenya Ltd. The data was collected by way of face to face and phone interviews. The data was then analyzed using content analysis. The study established that MultiChoice Kenya Ltd has managed to proactively as well as reactively execute various strategies that have enabled them to compete effectively in the turbulent and diverse Kenyan pay TV industry. The industry has seen increased competition which has realized a drop in profitability as the customers have to be shared with the new market entrants most of whom are coming in with a pricing strategy. This has resulted to a decline in revenues and struggle for and sometimes loss of programme rights. MultiChoice Kenya Ltd has reacted to the market challenges by putting in place various strategies. It is notable that they employed a general manager who has a wealth of experience to take the organization to the next level in the dynamic pay TV market. The organization has adopted strategies aimed at improving customer satisfaction by introducing a new range of channels, opening two new branches in Nairobi to decentralize the services, ensuring a well-developed dealership network in up country, improved sales and marketing strategy by partnering with the large chain stores like Uchumi, Nakumatt, Naivas, and Ukwala supermarkets to push sales, embracing loyalty programmes and most importantly MultiChoice Kenya Ltd rides on the added advantage of its partners strong brands, notably Dstv, M-Net, SuperSport, Dstv Mobile and Dstv Online. The study reveals that the strategies adopted by MultiChoice Kenya Ltd are relevant in exploiting the opportunities and overcoming the challenges in the market. The study just like any other had its limitations, notably, the time for interviews with the respondents was hardly enough given the nature of the respondent’s jobs. There was evident withholding of information by the respondents in an effort not to compromise the competitive position of the organization in the market. Related to the study and notably outside the scope, the following subjects should be given consideration for further research; pay TV content rights and bidding process and the possibility of hyper competition in the Kenyan pay TV market.