Strategies adopted by courier firms to cope with environmental challenges affecting the courier services industry in Kenya

Abstract

The objective of this study was set to establish the strategies adopted by courier firms to cope with environmental challenges in the industry in Kenya. The courier industry, which is regulated by the Communications Commission of Kenya, was liberalized in 1998, opening doors to stiff competition for the Postal Corporation of Kenya which had been a monopoly. The data and information received in this study presented the similarities and differences in management practices in different courier companies in strategy selection and application of popular strategic management concepts. Establishing the firms’ actions in coping with challenges in the external industry environment, and identifying the challenges in the industry enabled the researcher to relate the findings of the study with the research question on the appropriateness of strategies adopted, since some courier firms have succeeded in coping with the environmental challenges in the industry, while others have not. The descriptive sample survey research method was used to collect the data. A sample of 50 courier firms within 47 counties in the country was selected, and the data was collected through a self administered questionnaire send to the respondents on email and through the drop and pick method. The data was analyzed, summarized and conclusions drawn based on the firm profiles received and the strategic options presented. It was found out that different category licensees adopted various strategies in an endeavor to cope with various challenges in the industry including increasing competition, unlicensed entrants, high operational costs and regulatory influence. The most popular strategies included using better information systems that make customer service fast and reliable, offering high quality, better terms, value added services, and offering unique services to customers that are not offered by competitors Differentiation was the most popular generic strategy, with diversification being the least favored and applied grand strategy. The limitations of the study included restricted access to information, unreachable selected courier firms, and unwilling respondents who did not wish to participate in the study. The findings of this study support the fact that strategy is a fundamental ingredient for success and that to survive and thrive in a challenging business environment, every firm needs a strategy. The findings of the study also help to inform policy on management of courier companies in Kenya, and can be used as a source of reference by managers and strategists in courier firms, scholars of strategic management, researchers and stakeholders in the courier services industry in Kenya