Service differentiation strategies used by Law Firms in Nairobi

Abstract

Law firms in Kenya are operating In a very competitive environment, which is threatening their growth and survival. The services offered by law firms are similar in nature. The high credence and experience qualities of services make it difficult for clients to evaluate the services provided by law firms prior to purchase. Therefore, law firms must stand out in order to draw clients to themselves and create repeat purchases. Service differentiation strategies are used by law firms to distinguish themselves from their competitors. The objective of this study was to determine the extent to which service differentiation strategies are used by law firms to achieve competitive advantage. This was a descriptive survey. According to the Law Society of Kenya Directory 2005- 2006, there are 1500 law firms in Nairobi. However, due to the large size of the population, a sample of 100 was selected to represent the population. Data was collected using semi-structured questionnaire. The questionnaire was dropped and picked later from the respondents. The response and non - response rates were 93% and 7% respectively. The data collected was analysed and findings summarized in the form of frequencies, percentages, mean and standard deviation. The mean score sought to determine the extent of usage of service differentiation strategies. Offering, Service Delivery and Image strategies were the service differentiation strategies under study. As per the research findings, offering strategy posted the highest mean of 4.1, followed by Service Delivery strategy with a mean score of 3.6. Image strategy scored the lowest mean of 3.5. The overall mean of service differentiation strategies was 3.7, which confirmed that law firms used service differentiation strategies to a large extent. The researcher faced several limitations while conducting this study. Firstly, due to time and cost constraints, the study was restricted to law firms in Nairobi whereas law firms exist in other parts of Kenya. Secondly, some of the respondents were not objective in filling the questionnaire due to fear of exposure of their strategies to competitors despite viii assurance by the researcher. Last but not least, the research did not establish whether there was a relationship between performance and use of service differentiation strategies. It is suggested that research on the extent of use of service differentiation strategies by law firms in the other parts of Kenya be conducted. In addition, a study should be carried out to determine the perception of customers and/or employees on the extent of usage of service differentiation strategies in law firms. It is further suggested that a study should be carried out to determine whether law firms use other strategies, such as mergers, as a means of achieving competitive advantage. Last but not least, a study should be conducted to determine whether there is a relationship between performance and the use of service differentiation strategies.

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