Implementation of competitive strategies by G4S Security Services (K) Ltd

Abstract

Strategy is an essential part of any effective organization. By using an effective competitive strategy, a company finds its industry niche and learns about its customers (Porter. 1980). Porter (1985) asserts there are basic businesses strategies - differentiation. cost leadership. and focus - and a company performs best by choosing one strategy on which to concentrate. However. many researchers feel a combination of these strategies may offer a company the best chance to achieve a competitive advantage (Cross. 1999: Karnani. 1984; Miller and Friesen. 1986: White. 1986; Hill. 1988: Mathur. 1988: Murray. 1988: Miller. 1992: Dess and Miller. 1993; Johnson and Scholes. 1993: Fuerer and Chaharbaghi, 1997: Hlavacka et al.. 2001). Whatever strategy a business chooses. it must fit with the company and its goals and objectives to gain a competitive advantage (Kippenberger. 1996; Surowiecki. 1999: Parker and Helms. 1992: Ross. 1999). This paper investigated the implementation of competitive strategies by G4S (K) Ltd. The paper consequently aims to address the following research question: "What competitive strategies are implemented by G4S Security Services within the Kenyan security industry?" A case study was undertaken focusing on the management of G4s (K) Ltd. The study utilized interviews to collect primary data from twenty two (22) mangers. however, only sixteen (16) of the respondents were interviewed. The data was then analyzed using an inductive approach through content analysis and the findings presented using tables giving descriptive statistics including frequencies. mean and percentages. The Research findings illustrated that G4S (K) Ltd. adopted focus strategy as the main generic competitive strategy accompanied by mergers and acquisitions as part of its corporate strategy to gain and maintain a competitive advantage in the Kenyan security industry. Findings also illustrated that 100% of the respondents' were positive that the organization was facing challenges in the implementation of competitive strategies. These challenges were identified as including: inadequate management of linkages within the organization's value chain and to linkages into the supply and distribution chains and competition within the organization's industry; Reduced attractiveness and profitability of the industry, the degree of rivalry between existing competitors, the threat of substitutes and the threat of entry of new competitors (new entrants); insufficient budgetary allocation to finance acquisitions due to fear by management as they were of the view that there is a low return on investment (ROI); change management (staff involvement, attrition. motivation, culture change and reorganization); competition and dynamics in the business environment; leadership issues where there is a conflict between the manager's goals and objectives with those of the organization as well as a high turnover rate in the leadership; poor planning and poor strategy execution; and low investment in a competent. skilled and knowledgeable human resource. Consequently. the researcher recommended that G4S Security Services (K) Ltd should continue pursuing the focus strategy as a competitive strategy but should include outsourcing, strategic alliances and joint ventures as part of their corporate strategies with an aim of offering leverage to the focus strategy. As regards challenges faced in the implementation of competitive strategies by G4S Security Services (K) Ltd the researcher recommended that the organization develops adequate management of linkages within the organization's value chain and linkages into the supply and distribution chains and competition within the organization's industry. Focus on specific differentiated product lines that can ensure profitability as well as enter into strategic alliances aimed at reducing the degree of rivalry between existing competitors. Management should also allocate more funds to finance acquisitions and marketing strategies aimed at steering the organization as a market leader through focus and differentiation. Strategic change management should be implemented to address leadership issues, poor planning and poor strategy execution and 10 investment in a competent, skilled and knowledgeable human resource.