The challenges faced by the University of Nairobi in implementing competitive strategies.

Abstract

All organizations are environment dependent; they depend on the environment for their inputs and outputs. Every firm should therefore have a competitive strategy which relates it to its environment and enables it to maintain a fit between itself and the environment. Changes in the industry, environment, together with increasing competition has caused firms to change their competitive strategies in order to maintain their survival in the market and achieve profitability. This research was thus aimed at investigating the challenges faced by the University of Nairobi in the application of its competitive strategies/ strategic plan 2005-2010. Data collection instrument was a questionnaire, which was administered to senior management staff in the institution responsible for strategy formulation and implementation at the University. A total of 60(sixty) respondence were interviewed including 7 college principals, 22 Deans, 14 directors, 7 Registratars, & 11 seniot managers/ Officers. Data collected was first checked for consistency, coded, and then analyzed to arrive at the various conclusions. The study concluded that the major challenges faced in the implementation of the competitive strategies includes lack of sufficient financial resources, structural challenges, leadership challenges, cultural challenges, reward and motivational challenges, competition from private and public Universities, changing tastes and preferences of clients and rampant technological changes. Other challenges included tactical and operational challenges, resource allocation and budgetary allocation, management and employee involvement and communication of responsibility and accountability. The University of Nairobi, like any other state corporation operates in a complex environment, which is more unpredictal5le and less stable. This not withstanding, it is expected to emulate the private sector and operate competitively. The institution therefore had to resort for competitive strategies such as cost cutting, Market focusing, increased advertising, use of brand name and strategic location to counter the challenges. The institution also bases its completion on cost leadership and differentiation strategies, and had to change its competition tactics in its current strategic plan 2005- 2010 to maintain an edge over its competitors and retain its position as a market leader. Product diversification, staff training, customer service, collaborative links are some of the strategies in operation.