Strategies adopted by postal corporation of Kenya to gain competitive advantage in the mail sub sector in Kenya

Abstract

In the last ten years the mail sub sector in Kenya has witnessed one of the phenomenal growths in Kenya with registered players in the market hitting one hundred and fifty by June 2009 (CCK statistics June 2009). The same period witnessed an exponential growth in usage of mobile telephone services with subscription levels reaching sixteen million while the internet penetration levels reached an estimated 33.3 %. These factors have made the mail sub sector quite competitive. According to Porter (1994) competition is at the core of success or failure of a firm and firms adopt various strategies to enable them gain competitive advantage which can be eventually leveraged to result in superior service to the customers and superior profits to the firm. A resource based view emphasizes that a firm utilizes its resources and capabilities to create a competitive advantage that ultimately results in superior value creation. This study sought to establish the strategies adopted by Postal Corporation of Kenya to gain competitive advantage in the mail sub sector in Kenya in the light of increased competition. It was conducted through a case study and data was collected through an interview guide administered to eleven senior members of staff heading departments and responsible for strategy formulation and implementation at Postal Corporation of Kenya. The data collected was analyzed through conceptual and qualitative analysis and it was established that PCK has adopted various business, functional and operational strategies to gain competitive advantage in the mail sub sector in Kenya though the efforts are slow in bearing fruit. The study limitations included unavailability of interviewees and their unwillingness to disclose the strategies adopted by PCK to gain competitive advantage. The study concludes that though PCK has adopted various strategies to gain competitive advantage, they are slow in bearing fruit and hence indicating challenges in strategy planning and implementation. It thus recommends further studies on strategic planning and implementation at PCK. It further recommends adoption of Ansoffs product market strategies for growth and competitive as well as cooperative strategies for gaining competitive advantage in the mail sub sector in Kenya.