| dc.description.abstract | Strategic alliances have gained popularity in the Kenyan telecommunication industry
becoming increasingly favorable choice for companies that intend to achieve competitive
advantage over rival firms. Firms are faced with rapid changing global trends and
dramatic economic development, it is always impossible for firms to grow individually.
This study examines the effects of strategic alliance on competitive advantage at Airtel
Kenya Ltd. The study adopted a case study design so as to undertake an in-depth and
comprehensive inquiry in strategic alliances adopted and competitive advantages gained
by Airtel Kenya Ltd. The research objective was to establish the effects of strategic
alliance on competitive advantage at Airtel Kenya Ltd. Primary data was collected
through interviewing seven senior managers who were involved in the formation of the
strategic alliance by virtue of their position in the company. Secondary data was obtained
in the form of relevant documented materials on strategic alliances, news papers, research
reports, books, journals and website press releases. The data obtained in qualitative form
was analyzed through content analysis. This approach helps in getting areas of consensus
and disagreements from various interviews done and the already documented data.
The key findings of study indicate that Airtel Kenya engaged in strategic alliances with
the aim of gaining competitive advantage in the market through partnership with banks,
airlines, internet providers, mobile handset makers and health insurance firms with the
aim of growing their subscriber base, improve revenue and strengthen their brand
identity. The benefits behind the motives for formation of strategic alliances were transfer
of new technologies, creating customer value, leveraging on economies of scale and
scope, gaining access to specific markets and distribution channels, reduce operational
costs. The key challenges were unclear goals and objectives setting, performance risks,
mistrust issues, cultural differences, change in technology, regulatory barriers and
differences in target market. Moreover, turbulence in the market, resources constraint,
market uncertainties, risk sharing and technology transfer were a constant challenge faced
by the management team.
The study indicated Airtel Kenya‟s motive to form strategic alliances with dominating
domestic firms in the airline, commercial banking and insurance industries had
implications on practice and support of theory building. It recommended that Airtel
Kenya should continue to partner with other service providers in order to gain market
share and also impact positively on the livelihoods of the citizens to boost its brand image
and credibility. The study recommended on policy that the policy making process by
government agencies should be prudent in sealing loopholes that lead to unwarranted
legal barriers by rival firms. The study had limitations in terms of the scope of the study,
time and resources. The study recommended that further research should be replicated in
other mobile phone service providers in the country and the results of the findings be
compared for more accurate generalization as well as on firms that partner with Airtel
Kenya. | en_US |
