Competitive Strategies Adopted by Renewable Energy Firms in Kenya

Abstract

One of the environmental influences to a business arises from competition following increased globalization and internationalization of firms. Increased competition threatens the attractiveness of an industry thereby reducing the profitability. Competition determines the appropriateness of a firm’s activities that can contribute to its performance, such as innovations, a cohesive culture, or good implementation. The objective of this study was to investigate the competitive strategies adopted by renewable energy firms in Kenya in response to competition. This study used crosssectional research design. The population of this study was the companies operating in the renewable energy sector in Kenya. This study conducted a census study collected both primary and secondary data. Data was collected by use of semi structured questionnaires which contained both open and closed ended questions. The questionnaires were issued to the Marketing Managers of the 36 companies operating. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS and presented through percentages and frequencies. The findings of the study established that the competitive strategies adopted by renewable energy firms affected the competitiveness of a firm to a very great extent and included quality service delivery, employment of competent staff and application of cost saving. The following competitive strategies were used: strategic alliances, applied market segmentation strategy and strategic partnerships did not enhance the competitiveness of the companies. This study recommends that the government should invest in the renewable energy sector so as to contribute to its growth rather.