Competitive strategies adopted by private secondary schools in Kenya: a case study of Mombasa county

Abstract

Strategy is an essential part of any effective business plan. By using an effective competitive strategy, a company finds its industry niche and learns about its customers. Porter asserts there are three basic businesses strategies =differentiation, cost leadership, and focus - and a firm performs best by choosing one strategy on which to concentrate. However, many researchers feel a combination of these strategies may offer a company the best chance to achieve a competitive advantage. In Kenya the Education sector is one of the sectors that have experienced increased growth in the recent past, thus the purpose of this study is to examine the relationship between competitive strategies adopted and performance as well as the challenges experienced while pursing this strategies of private secondary schools in Mombasa. The study used the census survey method to assist in achieving the objectives of the study. The population consisted of all the 43 private secondary schools in Mombasa County as at May 201 1.Primary data was gathered using questionnaires administered to the directors or the head of the schools. Out of the 43 schools targeted, 30 responded by filling the questionnaires. This formed 69.7% response rate thus considered suitable for analysis. To achieve the study objectives, respondents were issued with a number of competitive strategies and were required to score on a 5- point likert scale the extent to which the strategies were adopted by their schools. The study scope allowed for cost leadership, differentiation, focus and combination strategies that formed the conceptual framework of the study. In addition they were supposed to rate their performance in relation to their competitors using total revenue growth, total assets growth, net income growth, market share growth and overall performance. The study used descriptive and inferential statistics to arrive at a more in-depth profile in establishing the link between competitive strategies adopted and firm performance indicators. The choice of a competitive strategy is critical for the survival and success of any company. However, in order to gain competitive advantage, finns need to build and adopt the right strategy especially in this increasingly competitive environment. Based on the findings, it can be concluded taat the private schools in Mombasa County in Kenya have moderate usage of cost leadership and differentiation strategy with significant variations in their adoption. Cost leadership-is. considered quite important by all the schools surveyed. In overall, all strategies were moderately in use by the private schools. The schools do not maximize on the usage of differentiation strategies which are key in improving their long term competitiveness and performance. They should venture more into strategies which aim at building long term competitiveness such as offering high quality services and offering better terms of service to staff so as to reduce staff turnover