Strategic response to competitiveness of Globalisation: A case study of Telkom Kenya

Abstract

The study was conducted by carrying out a questionnaire with the senior staff (respondents) of the company. The study intended to identify the strategic responses by Telkom Kenya Limited (TKL) to competitiveness due to globalization and the responses TKL is using to cope with these challenges. The telecommunication sector in Kenya was a monopoly until 1999 when the then Kenya Post and Telecommunication Company was dissolved to pave way for a liberalized sector. Several local and international players then entered the market with resultant competition. The immense growth the industry has offered in the last decade has meant that players see Africa as the next battle ground and have therefore come with immense resources. This has provided close substitutes to telephony services traditionally offered by Telkom Kenya Ltd. The study confirmed that the company put in place strategies to position itself ahead of competitors due to the competitive aspect of globalization. The study concluded that the company responded to the changing competitive conditions by segmenting its departments so as to compete on the basis of brands. The company also used hardball strategies that saw its competitors agreeing to work together with them as was the case with Orange, thus entering into strategic partnerships with other players.