Factors Influencing Competitive Advantage By East African Breweries Ltd Within Beer Manufacturing Sector In Kenya
A company has a competitive advantage whenever it has an edge over its rivals in securing customer and defending against competitive forces. Competitive advantage plays a critical role in organizations in pursuit of policies growth that create high-quality goods to sell at high prices in the market. East African Breweries Ltd (EABL) continued to dominate sales in 2007 with the majority market share. Despite East Africa Breweries Limited implementing competitive strategies, empirical study on the role of competitive advantage in company has not been established. This study seeks to determine role of competitive advantage in East African Breweries Limited. The objective of the study was to determine the factors influencing competitive advantage by East African Breweries Limited within the beer manufacturing sector in Kenya. This was a case study since the unit of analysis is one organization. Primary data was collected using self-administered interview guide with the manager. This was a case study aimed at getting detailed information regarding the achieving competitive advantage through adoption of innovation strategies.Content analysis was employed. This is a systematic detailed qualitative description of the objectives of the study. It involved observation and detailed description of objects, items or things that comprise the study.The study conclude that the company ensured delivering of the highest quality brands by manufacturing variety of quality beer products including Tusker Lager, Tusker Malt Lager, Pilsner and White Cap Lager which are superior to products of its competitors. This was due to company employing consumer driven business and where the EABL takes time to study the market and understand consumer needs and wants as well as how best to satisfy them hence constantly invest in innovating and renovating company’s brands to stay at par with dynamic consumer trends. The study concluded that company adopted product differentiation strategies which enable its to offering variety of beer products to different market segment offering high quality beer products, superior customer service and achieving lower costs alcohol than its rivals achieving competitive advantage in the market. The study concluded that adopted of various competitive strategies cost leadership, product and focus influenced company achieving competitive advantage had enabled the company to increase its market share, product quality products, access to natural resources such as barley, access to highly trained and skilled personnel human resources and new technologies, access to cheap labour and lower cost of production. The study further concluded that attained market leadership position through production of quality and superior alcoholic and non-alcoholic products effective distribution and marketing enable the companies to be market leaders influenced achievement of competitive advantage.