Challenges of application of porter's Generic strategies in the tea industry in Kenya: a case study of Ketepa limited

Abstract

All organizations are environment dependant; 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 environment.Changes in the industry environment together with increasing competition has caused firms to change their competitive strategies in order to achieve profitability and maintain their survival in the market. This research was thus aimed at investigating the challenges faced by firms in the application of Porter's generic strategies in the tea industry, a case of Ketepa Limited. Data collection instrument was an interview guide, which was administered to managers of sections in the organization responsible for strategy formulation and implementation of strategies at Ketepa Limited. From the population of 8 managers, 7 were interviewed. 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 to a great extent in the implementation of Porter's generic strategies in Ketepa Ltd includes; poor coordination among functions in R&D and marketing, competition from none branded products, '.. changing tastes and preferences of consumers and rampant technological changes. Financial requirements and technical leadership were •n.. ot of any challenge at all to the firm. Other factors which posed as a challenge to the firm included; ability and skills of managers and owners, community and government regulations and the ability and skills of staff. The firm therefore applies strategies such as cost cutting and market focusing to a great extent to counteract these challenges. The firm also bases its competition on costleadership and differentiation strategies, and has had to change its competition tactics over the past five years to maintain an edge over its competitors and retain its position as market leader.