Strategies used by Matatus in Nairobi to gain competitive advantage

Abstract

Firms need competitive strategies to enable them overcome the competitive challenges they experience in the environment where they operate. A competitive strategy therefore enables a firm to gain competitive advantage over its rivals and sustain its success in the market. Competitive strategies comprise both offensive and defensive action and in the face of competition, firms adopt various competitive strategies within the industry sectors. The objectives of this study were to establish the competitive strategies applied by matatus in Nairobi and to establish the factors determining the choice of strategies pursued by the matatu owners. A cross sectional survey consisting of matatus operating in Nairobi was carried out.The study was limited to two hundred matatus that were randomly picked from the four major regions served by matatus. Both primary and secondary data were collected using structured questionnaire and industry analysis report respectively. The study shows though the matatu industry looks a chaotic business in the country, it’s a lucrative industry which if attended to and issues raised addressed can generate enormous income and employment for the country.