Response strategies of tobacco companies in Kenya to global competition.

Abstract

This study sought to find out the response strategic of tobacco manufacturing companies in Kenya to global competition. With the advent of globalization and hence the creation of a border-less business world, many businesses have been forced to take some deliberate and strategic measures to defend their market shares and to grow their businesses in the face of global competition. The study is a case study of two tobacco manufacturers in Kenya namely British American tobacco and Mastermind tobacco Kenya, which are the key players in the tobacco industry. The objective of the study was to find out the response strategies of these companies to global competition and further how the strategies differ between the two companies. Data for this study was primary data collected by the researcher through personal interview with the heads of department's namely marketing, business development and manufacturing. The data was then analysed using content analysis. Findings from this study revealed that indeed the tobacco companies were part of a globalised business world and that global competition had a direct impact on their operations and strategies. The firms have thus adapted some response strategies in an effort to defend their market shares.~and remain at the competitive edge. Brand rationalisation, restructuring, supply chain strategies, information technology, collaboration with Government in issues as diverse as taxation and tobacco regulation as well as societal responses including social reporting and corporate social responsibility came out the key responses by these companies to global competition. The study further established that these response strategies were to a larger extent similar between these companies merely differing slightly on their scope with BAT Kenya being a subsidiary of a multinational company and MTK a locally owned private company. Arising from the findings it was suggested that a study can be done on understanding the responses of firms in other industries to global competition as well as the factors that influence and inform multinational companies in setting operation in a certain country.