Strategies adopted by Nairobi java house to gain competitive advantage

Abstract

The hospitality industry has in the last couple of years seen a transformation and dramatic changes which are brought about by competition. The study looked and analyzed as study objective, the strategies the company has adopted to achieve competitive advantage over its rivals. On another objective, it ventured on the challenges the company encounters in application of the said strategies and how it counters the challenges. The design used was ideal for the research problem since it allowed for an expansive data collection and thorough analysis of the data collected. By using a case study, the researcher was able to probe, collect data and explain phenomenon more deeply and exhaustively. The study found out that the strategies that Nairobi Java House adopts to achieve competitive advantage include: differentiation; product development; product pricing; market development; market expansion; diversification; and cost leadership strategy. It also found out that to apply these strategies, the company goes through some challenges like prior strategic commitments that hamper company ability to compete, lack of staff training and growth, other competing restaurants opening up business close by, product inconsistency and supplier unreliability. The study made the conclusion that Nairobi Java House operates in a very competitive environment. However, the company has been able to compete and achieve competitive advantage from the strategies it employs. It concluded also that companies do not gain competitive advantage by employing one strategy but by using a number of them so as to compete with all the competitors. If the company is able to maintain the use of these strategies effectively, then it would keep its position as a market leader. The company has also been able to counter its challenges by using readily available resources. The study recommended that the company should focus on its expansion speed considering its level of popularity so as to maintain its competitive edge