Effectiveness of competitive strategies adopted by major radio stations in Kenya
One of the challenges presented by a dynamic environment is increased competition. Competition is indeed a very complex phenomenon that is manifested not only in other industry players but also in form of customers, suppliers, potential entrants and substitute products. It is therefore necessary for a firm to understand the underlying sources of competitive pressure in its industry in order to formulate appropriate strategies to respond to competitive forces. Competitive strategy specifies the distinctive approach which the firm intends to use in order to succeed in each of the strategic business area. Competitive strategy gives a company an advantage over its rival in attracting customers and defending against competitive forces. The objectives of this study were to determine the dimensions of competition faced by radio stations in Kenya and also establish the competitive strategies that radio media stations has adopted to cope with the challenges of increased competition in the television broadcast media industry in Kenya. The researcher used cross- sectional survey in the study. The target population of interest in this study was the operational radio channels in Kenya. There are currently over 10 filly operational radio channels in Kenya. The researcher applied proportionate stratified sampling during data collection to select the managers from the study population. Proportionate stratified sampling was appropriate since it identifies sub groups in the population and in their proportions and selected from each subgroup a sample. A sample size of 10 was targeted and data was collected using a questionnaire that allowed for uniformity of responses of questions. Besides, secondary data was collected from documentations from these companies. Data collected was processed through computer software SPSS (Statistical Package for Social Studies) and presented in the report in form of tables and graphs. The study found out that the competitive strategies used by television media stations were cost leadership and differentiation. The strategies according to the study findings have placed the companies in a favorable position relative to the competition. These strategies have also made the major radio stations not only achieve high levels of efficiency and effectiveness, but also to gain and sustain competitive advantage. The study also found out that the dimensions of competition for the major radio stations were threats of new entrants, threat of substitutes, power of suppliers, bargaining power of buyers and intensity of rivalry. It was also conclude that cost leadership helped to deal with competition by employing technology aimed at achieving low cost production. On the effectiveness of the strategies employed it was concluded that, there were effective new service development ,new innovations, active Brand Management, cost leadership, retaliation to competition and defensive moves. The study recommends that successful radio stations should ensure their products are differentiated enough to be able to distinguish them from other competitors.