Gaining Competitive Advantage Through Differentiation: a Case of Radio Stations in Nairobi

Abstract

Organizations are open systems, that is, changes in the environment shape opportunities and challenges facing the organizations. Studies carried out before liberalization indicates that the reform process has led to stiff competition in key sectors of the economy (Bett 1995, Kombo 1997, Owiye 1999, Njau 2000, and Murage 2001). Decisions generate action that produces results. Organizational results are the consequences of the decisions made by its leaders. The framework that guides and focuses these decisions is strategy. The framework that guides competitive positioning decisions is called competitive strategy. According to Bourgeo, (1980) the purpose of a competitive strategy is to build a sustainable competitive advantage over an organization's rivals. A competitive strategy defines the fundamental decisions that guide the organization's marketing, financial management and operating strategies. This was a descriptive survey with the objectives of determining the relationship between differentiation strategy and competitive advantage, determining the differentiation strategies adopted by radio stations in Nairobi and identifying the challenges faced in implementing differentiation as a competitive strategy. A questionnaire was used to collect data which was administered using drop and pick method to the management of various radio stations. Data was analysed using descriptive statistics and correlation. The study found out that there is a relationship between differentiation strategy chosen by the radio stations and competitive advantage. These findings have implications for the media houses, the management of radio stations and academics.