Competitive strategies adopted by local pharmaceutical manufacturing companies in order to gain a sustainable competitive advantage in Kenya.

Abstract

This study was set out to investigate the competitive strategies adopted by local pharmaceutical companies in Kenya. The objective of the study was to investigate the competitive strategies adopted by local pharmaceutical manufacturing companies in Kenya and to determine the challenges they face when implementing these strategies. This study adopted a cross sectional survey design which was most appropriate in the investigation of competitive strategies adopted the local pharmaceutical manufacturing companies in Kenya. There are forty two local pharmaceutical manufacturing companies in Kenya listed by Pharmacy and Poison Board of Kenya (PPB). A census study was undertaken. The respondents were subjected to the study through a questionnaire. The researcher used primary source of data which was obtained through a structured questionnaire. The study found that most of the local pharmaceutical manufacturing companies in Kenya prefer cost advantage strategy, focus strategy was least practiced by the companies. Differentiation strategy was the second most preferred strategy with the companies providing unique product to their customers which are not easily imitable. Competitor reaction was the major challenge during strategy implementation. Based on the findings of the study, it was recommended that further studies can be carried out to investigate the factors that the local pharmaceutical manufacturing companies consider when choosing a competitive strategy.