A survey of competitive strategies employed by shipping companies in Kenya

Abstract

The major objectives of the study were to determine the competitive strategies employed by shipping companies in Kenya and the factors which determine their competitiveness. The turbulent environment in which businesses operate demand that firms craft strategies that will enable them gain competitive advantage over other players in the market. Currently there are 16 shipping companies operating in Kenya based in Mombasa. All the 16 firms formed the population of study. Data for this study was obtained through the use of questionnaires which were dropped and picked after 7 days. The findings of this study show that shipping companies III Kenya employ competitive strategies of cost leadership, differentiation and focus to different degrees. Cost leadership strategy is the mostly employed amongst the companies. Differentiation strategy mainly revolves around customer service and equipment labelling. Focus strategy is also in use, through foreign customers who have similar nationality with the parent company abroad but have investments locally. Other strategies which were found to influence competitiveness of the shipping companies are customer care, strategic Information Systems implementation, sound financial management and introduction of strong organization culture that supports the company objectives.