The Link Between Value Chain and Competitive Advantage at Deloitte & Touché, Kenya

Abstract

This study sought to identify the value chain activities at Deloitte & Touché, Kenya and to establish the link between these activities and competitive advantage. A company‟s value system is not limited to a simple linear two dimensional view; rather it is made up of strategic activities that do not necessarily work in a serial fashion as in the traditional value chain models. The study adopted a case study design. Both primary and secondary data sources were used. Primary data was collected using an interview guide as the key instrument. The study was based on the two Deloitte & Touché offices in Kenya based in Nairobi and Mombasa. The research targeted all the heads of departments in each of the 16 departments. Secondary data was collected through company magazines, newsletters and journals. Data was analyzed using qualitative approach, particularly content analysis. The study response rate was 82 percent. The respondents acknowledged that at least some of their department‟s value chain activities were an input to another or other departments within the organization. This was an indicator of integration of activities within the organization service value chain. Findings revealed that parameters of performance measurement of value chain activities link to the firms overall objectives. Financial performance was the key parameter of performance within most of the departments. It was observed that value chain activities were strategically tailored to gaining competitive advantage for the firm. Investment in quality staff, client‟s value creation in all services, punctuality and reliability, learning and development, quality control, technology and corporate social responsibility were identified as the key value chain activities that made Deloitte & Touché, Kenya stand out as a number one choice in the Kenyan market. The study recommends that unlike value chain in product industries, service industry should focus more on human resources management value chain activities so as to capture the best of its people. They should therefore be driven by the strength of its people to enable them offer high quality services. Whereas primary activities should focus on utilization of the professional skills, the support activities should largely focus on empowerment of human resources for high quality professional client service.