Competitive strategies adopted by players in the beer industry in Kenya

Abstract

The study was an assessment of Competitive Strategies Adopted by Players in The Beer Industry in Kenya. To achieve this, the following study objectives were set a) To establish the drivers of competition among players in the Beer Industry in Kenya b) To determine Competitive Strategies adopted by Players in the Beer Industry in Kenya. The study adopted a cross sectional descriptive survey research design. There are 11 players in beer industry operating in Kenya. The research therefore took the form of a census study covering all the players in the beer industry in Kenya since the population of 11 firms was considered small enough. Eleven questionnaires were given out though only 10 were considered fit for data analysis. The data collection tool used in this study was the questionnaire. Data was analyzed using descriptive statistics. Findings indicate that players in beer industry in Kenya are faced by several forces that shape competition. These include competitive rivalry, threat of new entrants, bargaining power of suppliers and customers, globalization, regulation and information technology. players in beer industry in Kenya use cost leadership strategy as a competitive strategy since they attempt to reduce their operational costs in order to deliver the product at the lowest prices. It was also possible to conclude that players in beer industry in Kenya use differentiation as a competitive strategy since they have invested in product research. Players in Beer Industry in Kenya also use focus as a competitive strategy since they have products for different types of consumers. It was also possible to infer from this study that players in beer industry in Kenya use value disciplines as a competitive strategy. The study recommends that players in beer industry should carry out constant environment scanning so as to be able to identify the various forces that affect their operations. In addition players in beer industry need to adopt strategic planning as a tool for planning against any unforeseen events that may destabilize the operations of the company. Finally, it is recommended that players in beer industry need to continue using the various competitive strategies. However, they also need to factor in the concept of strategy fit by considering the internal capabilities and resources of the firm.