Strategic responses adopted by Airtel Kenya to competition

Abstract

Strategic response is a reaction to what is happening in the economic environment of organizations. Porter (1998) views operational responses as part of a planning process that coordinates operational goals with those of the larger organization. With the increasing competition that companies are facing today, rewards will accrue to those who can read precisely what consumers want by continuously scanning the environment and delivering the greatest value to customers with the view that as the operating environment changes, a more pronounced transformation of the business landscape lies ahead. Since the turn of the millennium, the general business environment has become more volatile, unpredictable and very competitive. Coping with the increasingly competitive environment has called on firms to rethink their marketing strategies. The study sought to establish the strategic responses adopted by Airtel Kenya to competition. This was a case study. The researcher used both primary and secondary data. Primary data was collected using in depth interview guide while secondary data was collected by use of desk search techniques from published reports and other documents. The interviewees of this study were the heads of departments. A content analysis was employed. From the study findings, the researcher concludes that the main challenges faced by Airtel due to competition are price wars in the telecommunication industry especially from the main player Safaricom. The study further concludes that the strategic response integration processes are mainly technology based and the company’s preparedness compare with other companies within the telecommunication industry that the company is better prepared of any eventuality. The study also deduced that line managers implements the strategic responses within the department which are reviewed or amended on a monthly basis. The study recommends that Airtel should engage in more cost reduction as a response to its competitors’ strategies. Besides providing its services and products at lower cost (cost advantage), Airtel should deliver benefits that exceed those of competing products (differentiation advantage) to gain a competitive advantage over other firms.