Competitive strategies applied by commercial colleges in Nairobi's central business district (CBD)

Abstract

Commercial colleges in Nairobi's Central Business District have witnessed changes as a result of commercialisation of the Education Sector. This has therefore had an impact on the state of competition in these training institutions. For these colleges to survive the already existing stiff competition, it has become necessary to develop competitive strategies to enable them achieve competitive advantage and even survive the existing competition. With opportunities m university education failing to match the demand, focus in training is shifting to commercial colleges-certificate and diploma courses. From teacher training, hospitality, medical and vocational courses, to mention but a few, the level of training provides the much needed man power crucial for the development of the country. Most of the courses offered at this level also assist graduates to be self reliant through engaging in self-employment. This study endeavoured to determine competitive strategies applied by Commercial colleges in Nairobi's Central Business District (CBD) to compete effectively. The study also sought to establish factors influencing the competitiveness of these colleges. The study focussed on 42 commercial colleges that were sampled; 36 colleges were involved in the study. This represented a response rate of 86%. Data was collected through questionnaire method. Questionnaires were administered through personal interview and drop and pick method. Drop and pick method was used especially where the respondents were away or could not answer immediately the questionnaires due to time constraints. Data was captured using SPSS and Factor Analysis was used to generate Eigen values, whereby the highest Eigen value is the most important in each analysis. From the analysis it was established that commercial colleges used generic strategies in order to attain competitive advantage. Through examining generic strategies, it appears that Focus strategy is the most used strategy (50% ).This is followed by cost leadership (29%) differentiation and other strategies follow in that order. According to research findings there are a number of competitive factors influencing competitiveness of commercial colleges. The findings reveal that the Ability and skill of directors was used to a great extent (74%) by respondents. This could be explained by the fact that majority of the respondents were colleges directors who perceived their skills and ability as most important competitive strategy. However, the most important factor affecting competitive edge of colleges based on Eigen values was employing competitive teachers, followed by Ability and skill of director. Offering discounts is also a used strategy with a percentage of 18%. The least factor was display of course prospectus. Commercial colleges should use other strategies like advertising, training their staff members, especially receptionists' on public relations and lobbying in order to satisfy the ever-demanding students' needs.