Responses of unga limited to changes in the competitive environment

Abstract

The study was conducted by interviewing senior managers of the company. The study intended to identify the changes that have occurred in the flour milling industry, the challenges these changes pose to Unga and how the company has responded to them. For determining the responses to competition, Porter's five-force industry model was adopted, that is, the entry of new competitors, threat of substitute products, bargaining power of suppliers, bargaining power of buyers and the rivalry between existing competitors in the industry. Historically, Unga was a dominant player in the flour milling industry until the early 1990s when globalization and economic reforms saw an influx of other players in the industry. The study found out that competition has really intensified in recent years and the company has adopted several strategies to respond to increased competition. These strategies include quality consistency, flexible pricing, product rationalization and branding. The study used primary data collected through an interview guide administered to eight respondents. However, only six of these respondents were interviewed. Secondary data was also used from the existing company records at the company's Ngano House head office in Nairobi.