Strategies for competitive advantage in global Trade: A case study of Kenya Tea Development Agency

Abstract

This paper analyzed the challenges faced when trading tea globally and the competitive advantages that a major player, KTDA, could employ in the global trade. Kenya being an agricultural country needs to sustain agricultural development for economic growth. A lot of the income for small scale holders comes from trading tea. Therefore improved sales can lead to improved lifestyles for the farmers. A country's Gross Domestic Product will also improve leading to overall economic development. The research method involved a case study of KTDA and the findings were analyzed using content analysis to determine the current challenges faced when trading with tea globally and the competitive advantages KTDA was employing in view of this. Previous studies had shown weaknesses in the management and organizational structure of the company leading to a suboptimum performance in global trade. The respondents consisted of managers who were interviewed and the information collected from them was checked for accuracy and completeness and then analyzed to arrive at the various conclusions. The study concluded that the competitive advantages that KTDA entails in its management include quality enhancement and product differentiation strategies. The objective is to maintain an edge over its competitors and also sustain a position as the global market leader. The findings from this analysis are a guide for policy recommendations and suggested strategies will improve the tea sector and the overall economic development in Kenya, and hence aid in the attainment of vision 2030 given that Kenya is an agriculturally inclined country in terms of production for export. The agricultural sector consists of four major sub-sectors namely industrial crops, food crops, horticulture, and livestock and fisheries. Tea falls under the food crops sub-sector and is a major contributor to export earnings.