An investigation of the effects of generic competitive strategies on performance of Coca cola Company (Kenya) Ltd

Abstract

With increase in competition that most companies are facing today, rewards will accrue to those who can read precisely what consumers wants by continuously scanning the environment and delivering the greatest value to customers. This research was studied with a case study of Coca cola (Kenya) Ltd which gave in-depth information on the competitive strategies adapted by the company and the effects on the organization performance. Questionnaires was used and administered to the managers in the various departments of Coca Cola (Kenya) Ltd. Such questionnaire was designed to give a brief knowledge of the competitive strategies adopted by the company. Closed-ended questions were predominantly be administered to gather for subjective answering. However, a number of open-ended questions were used to give room for quality information that could have been overlooked. The targeted case was major departments in the company. Data collected was analyzed based on primary statistics such as the frequency analysis and reliability tests. In addition, factor analysis and Spearman correlation analysis were adopted to determine success factors for the operation of e-channels by Coca cola (Kenya) Ltd. The information was displayed by use of bar charts, graphs and pie charts. service quality and customer relationship are the most effective competitive strategy used by soft drink industry as well as differentiation of product by the various departments in Coca Cola (Kenya). This is crucial in creation of competitive edge among soft drink industry since differentiated products give a customer a variety of products from which they can explore and see their benefits. Towards this end, the researcher recommends that, Coca Cola (Kenya) carry customer surveys in order to know the exact needs of their clients. This would assist the Coca Cola (Kenya) in coming up with strategies that are workable and longlasting. However, customer relationship should not be enhanced at an expense of cost leadership since customers are very sensitive to prices. The researcher also recommends that, the sample size be expanded to include other companies in the soft drink industry like Softa Limited in order to make a comprehensive conclusion. At the same time the same study should be carried on another industry rather than soft drink sector, especially in the manufacturing sector, to enhance comparison.