Strategic Planning by Service Providers in the Telecommunication Industry in Kenya

Abstract

The study was undertaken to determine whether service providers in the Telkom industry align themselves to the fast changing and developing industry in Kenya. The objective of the study was to analyze what strategic planning practices the service providers have and what challenges they encounter. To achieve this, the study was carried out through a cross sectional survey. Primary data was collected using questionnaires addressed to the CEO’s and top management of the various service providers to the Telkom industry and administered using the drop and pick method as well as email. Appointments were made to see the respondents in person or telephone calls were made where the respondents needed to seek further clarifications. The target respondents of the study were mainly the top management because they would be more familiar and involved in the strategic planning in the organizations. Descriptive statistics was used to analyze the data collected. The study found out that the strategic planning practices adopted were formal and documented though the involvement of the strategic planning process is left to the top level management. The need to involve lower level management in strategic planning as well as communication of the strategies and the results achieved from the strategies is not considered to be of great importance to the strategic planners. With the realities of the changing telecommunication environment to keep up with the new technologies, the service providers need to improve the strategic planning process and minimize the challenges they face. A number of measures to reduce these challenges have been highlighted and they include better need to capture data on the environment, refine performance measures, track and evaluate strategic plans on a regular basis to assist on long term planning as well as enable expand into other markets within the region.