The extent of application of Porter's generic strategies by the new Kenya Co-operative Creameries Limited (KCC)
Strategic planning in an organization involves defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) and PEST analysis (Political, Economic, Social, and Technological analysis) or STEER analysis involving Socio-cultural, Technological, Economical, Ecological, and Regulatory factors and EPISTELS (Environment, Political, Informatics, Social, Technological, Economic, Legal and Spiritual) (Newman, 1989) This study was conducted through a case study design, Primary and secondary data was used in the study. Secondary data was also obtained for the study. The data collected was analyzed in accordance with the objectives of the study, which was to determine the extent to which the New KCC Ltd has adopted the Porters Generic Strategies and to establish whether the New Kenya Cooperative Creameries (KCC) management considers porter’s generic strategies to be effective. The study found that the new KCC adopted the porters generic strategies to a great extent, these strategies includes Product differentiation, low cost of production, cost focus strategy and cost of leadership strategy, the new KCC had also employed cost of leadership as competitive strategy to a great extent and had employed cost focus strategy in enhancing its competitive advantage to a very great extent as it helped in operating the company at lower cost thus maintaining a competitive edge over its competitors. The study was limited to the application of porters’ generic strategies by the new Kenya cooperative creameries limited (KCC). Owing to the fear that information gathering is intense in this sector amid heightened competition, the informants had to be fully convinced that the purposes of this study are purely academic. This limited the interviewer from probing on matters that are considered sensitive for the organization. The study recommends that a further study on a wider focus, to include all Dairy industries in Kenya and investigate the extent to which other co-operative and dairy firms practice to sustain porter’ generic strategies in the turbulent environment.