Competitive Strategies Adopted by Private Universities in Kenya

Abstract

Over the past years, public universities in Kenya have faced many challenges. Among these challenges are: enrollment beyond their capacity to plan and finance, fiscal challenges beyond their control, decline in quality beyond their anticipation, and weak management practices. To help solve some of these problems, private universities have increasingly emerged and gained ground in the country as an alternative to higher education provision (Oketch, 2003). As the number of private universities continue to grow, so does the competition for market survival intensifies. Competition for survival has been the guiding force for existence and it has been associated with the creation of wealth. With the development and progress of civilization, competition has become more complex. The firms are engaged in various activities to minimize their costs and maximize their profits. Thus, the core competencies of the organization are reflected in their commercial activities and the most competent is the winner in grabbing a large chunk of market share and leads the industry (Poddar and Gadhawe, 2007). In this study, the researcher sought to determine the various competitive strategies that Private universities in Kenya adopt in order to gain a competitive advantage over other players in the same industry. In their study, Poddar & Gadhawe (2007) defines competitive advantage as the advantage that one firm has, relative to competing firms in the industry. It is the advantage a firm has over others, which helps the firm to fight out

others in the race and trap the consumers. The competitive advantage can be in any form or manner, which helps the firm in increasing and retaining the market share. In simple terms then, competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and services that justifies higher prices.