Managing Obsolescence Cost: Case of Mobile Phone Handset in Kenya

Abstract

Globally businesses aim at customizing products that are of the right quality and quantity at competitive prices, to ensure that their customers stay loyal. Proper analysis and management of the product life cycle is a key competitive necessity in today’s no-room-for-error business arena in order to create value and competitive advantage. This study adopted a descriptive research design to investigate the management of mobile phone handset and obsolescence in Kenya. Specifically, the study sought to study how this obsolescence has been occasioned by the management – or lack thereof - of the short product lifecycle typical of the mobile phone handset. A census of 41 mobile phone handset dealer shops within Nairobi Central Business District formed the study population. The study established that mobile phone dealers are facing the challenge of obsolescence based on lack of timely, accurate and actual information sharing with suppliers. Proper inventory strategies must be employed to avoid dead stock so as to deal with obsolescence in a sustainable manner.