Perceptions of co-operative insurance group managers towards strategic alliances and competitive advantage

Abstract

The objective of the study was determining the Perceptions of Co-Operative Insurance Group Managers towards Strategic Alliances and Competitive Advantage. A survey research design was used in this study because the study was interested in establishing the opinions of more than one manager. The study populations were all Headquarter office managers of the Co-operative Insurance group of Kenya. The respondents were twenty three heads of departments for the various subsidiaries of CIC insurance group. This formed the population. This study employed a census method and used all 23 managers though the actual responses were 20 in number. The collected data was analyzed using quantitative procedures. Quantitative data was analyzed using descriptive statistics and inferential statistics. Following the study findings, it was possible to conclude that the CIC group enjoyed various competitive advantages from the strategic alliances they engaged in. Results also indicated that the top five competitive advantages that CIC enjoyed were: solid anchor shareholder base, stronger and wider interconnected branch network, stronger customer loyalty and stronger distribution network. It was also possible to conclude that the managers had a positive perception of the role of strategic alliances in bringing about competitive advantages. The study recommends that Managers sat CIC Group can use the results to craft strategies on which areas to improve and which areas to excel at. It is also suggested that since the managerial perceptions were that formation of strategic alliances have brought about competitive advantages, it may be important to consider investing in the area of strategic alliances with a hope of building and enjoying further competitive advantages. This investment would take the form of more human and financial resources allocated to strategic alliance formation. The study further vii recommends that similar study be replicated across all other insurance companies in order to able to find out whether strategic alliances can lead to competitive advantages to the insurance industry in Kenya as a whole. Another recommendation was to have a similar study to evaluate if the firms that have partnered with Co-operative insurance have realized any competitive advantages from the strategic alliance.