Strategic responses to the dynamic environment by Matatu Saccos in Nairobi city

Abstract

The objective of this study was to determine the response strategies to the dynamic environment by Matatu SACCOs.57 Matatu SACCOs were targeted for the study using the cross sectional survey study. A structured questionnaire was administered to the SACCO managers through ‘drop and pick’ method. Out of the targeted Matatu SACCOs 39 responded which represents a 68% response rate. The response rate mainly affected by the limited time respondents were expected to complete the questionnaire and financial constraints which did not allow the researcher to make many trips to the outskirts of Nairobi city where most of the Matatu SACCO offices are located. The questionnaire was structured in three sections. Part A was used to gather information on the SACCO profiles, Part B was to obtain data on the impact of the industry environment on the SACCOs and Part C was to determine the response strategies to the dynamic environment adopted by these SACCOs. The data collected was analyzed for completeness and validity and the findings analyzed by using descriptive statistics. The findings were then presented in the form of frequencies, means, mode, percentages and rankings. The results of the analyzed data were presented in the form of tables and charts. Profile data analysis revealed that most of these SACCOs are still in the growth phase and have low numbers in terms of branch offices, staffs, membership and vehicles. Using a Likert Scale to determine the extent of the impact with (1 representing no impact and (5) representing extremely high impact the findings revealed that the Matatu SACCOs just like other players are affected to a varying degree by both the micro and macro turbulent environment. The legal, economic and technological environments in descending order of importance xi were found rank highest. The Likert scale with (1 being no response and (5) being extremely high response, was used to determine the response strategies to the micro dynamic environment adopted by Matatu SACCOs.The results showed that these SACCOs have formulated responses strategies for the micro turbulent environment and that route management, passenger service and granting of business loans were the top three strategies adopted. The Likert scale with (1 being no response and (5) being extremely high response, was also used to determine the response strategies to the macro dynamic environment adopted by Matatu SACCOs.The results showed that these SACCOs have formulated responses strategies for the macro turbulent environment and that customer satisfaction (14.1%), quality service (13.4%) and branding (12.8%) were found to be the three leading strategies. The other response strategies applied included cost focus (11.3%), diversification (10.7%), differentiation focus (10.6%) and segmentation.