Strategic Responses to Competition by the Medium and Large Supermarkets in Nairobi, Kenya

Abstract

This study set out to establish the strategic responses to competition by the medium and large supermarkets in Nairobi and the challenges faced in implementing these strategies. Data was collected through a well-structured questionnaire targeting general managers and chief supervisors of the firms. The findings indicated that competitive strategies are at play with most firms adopting the differentiation strategy. In line with differentiation strategy and as they focus broadly in the market, these supermarkets have adopted customer service, strategic location, staff training, increased advertising and branding as the important competitive strategy. The study found that the main challenges facing medium and large supermarkets are; ability and skills of staff, marketing, financial requirements, changing customers tastes and preferences and competition from smaller outlets and substitutes (other supermarkets). On the other hand, barrier of entry and exit of other players and ability and skills of owners have no or small challenge in business operations.