Competitive strategies used by small scale information telecommunication firms in Nairobi

Abstract

The objectives of this study were to determine the competitive challenges that small scale Information Telecommunication (IT) firms face and how these challenges affect them, and to determine the strategies that small scale Information Telecommunication firms in Nairobi adopt to deal with the competitive challenges that they face. A sample of 62 small scale ICT service providers was drawn from enterprises operating within Nairobi’s Central Business District (CBD) along Uhuru Highway, Haile Selassie Avenue, Tom Mboya Street and University Way (see attached map of Nairobi Central Business District). Most of the enterprises are located in the area covering Koinange Street, Press Lane, Moi Avenue, and Tom Mboya Street. This study found that small scale telecommunication firms in Nairobi have adopted three major strategies, namely: giving customers more value, being low cost producers, and selling differentiated products. These strategies show that firms compete on the basis of low price and catering to a price-conscious market segment. These strategies are targeted at meeting needs of price-conscious customers. The firms employ both low price strategy and cost strategies