| dc.description.abstract | The study sought to investigate the strategic responses by the major oil companies in
Kenya to the threat 0f new entrants into the industry. It was based on the five oil
companies which started their operations before the market was liberalized to allow new
competitors. The objectives of the study were firstly, to investigate the strategic responses
that the major oil companies have used to counter the threat of new entrants into the
industry. Secondly, to identify the future challenges posed by the new entrants and the
likely strategic responses by the major oil companies. The study was based on primary
data which was collected using a questionnaire using personal interviews as the mode of
collection. The data obtained from the five major oil companies was then analyzed and
interpreted using descriptive statistics primarily Proportions, Percentages and the Mean.
The findings of this study reveal a number of strategic responses used to counter the
threat of new entrants into the Kenyan oil industry. In responding to the changes, the
major oil companies used a combination of generic strategies including cost leadership,
differentiation, market focus, segmentation, penetration and development of new
markets. We also established that majority of the major companies in responding to the
threat of new entry changed products and services offered, the market segment served and
had also effected a change in technology.
In view of the findings, a few observations have been made. Firstly, companies in an
industry where there is a threat of new entry need to proactively anticipate and
strategically respond to the changing environment. Secondly, there are a number of
strategic options available for companies intending to respond in the face of new and | en |
