Strategic responses to environmental changes in the Pharmaceutical industry in Nairobi Kenya

Abstract

Strategic responses to the external environment of the organization are key to the success of any company. Every successful business has a plan and knows where it is headed in the future. The study investigated the strategic responses applied by the pharmaceutical industry players to environmental changes in Nairobi, Kenya. The study was conducted through a cross-sectional survey design and the study population comprised of 31 pharmaceutical companies in Nairobi, Kenya. Data was collected by means of a self-administered questionnaire. The data was subsequently analyzed using quantitative techniques of descriptive statistics, correlation analysis and regression analysis. The study found that majority of the respondents use product differentiation as a strategic response and cost differentiation. The study also revealed a better understanding of the extent of strategic responses by the pharmaceutical companies in Nairobi to environmental changes. The study therefore recommends that the regulatory authorities enforce the ethical requirement of doctors prescribing using generic names and not brand names of medicines. From the study it can be concluded that the pharmaceutical companies in Nairobi apply different strategic responses to changes in external environment. The study also revealed that most companies applied more than one strategic response.