Competitive strategies adopted by pharmaceutical companies operating in Kenya

Abstract

This project investigates the competitive strategies adopted by pharmaceutical companies operating in Kenya. The population of the study consisted of forty two pharmaceutical companies operating in Kenya. Cross sectional survey design was adopted. The study used primary data which was collected through self-administered structured questionnaires. It was found out that the competitive strategies mainly adopted by pharmaceutical companies were differentiation and cost leadership strategies. Focus strategy was used by the companies but to a less extent. The use of the differentiation strategy would enable the company to differentiate itself by providing a unique product or service thus fulfilling a customer need by tailoring the product or service to the customer. Cost leadership strategy would enable the companies to secure a relatively large market share by being the lowest cost producers or service providers in their industry or market. The companies however, are faced with various challenges in the adoption of the competitive strategies which include; technology, structural changes, impact of industrial activity on the environment, emergence of new sources of competition, globalization resulting to expanded boundaries of competition and transformed costs of doing business. The project provides a model for understanding the level of competition and the setbacks encountered. It makes a contribution to competitive strategies and their challenges in the pharmaceutical industry in Kenya