Innovation Strategies Adopted by Milly Fruit Processors Ltd in the Changing Environment in Kenya

Abstract

A Changing business environment alter the way organizations fundamentally conduct business. Organisations are faced with a lot of challenges emanating from the environment. In order to survive, strategies have to be adopted to respond to the forces that threaten to halt survival. Long term sustainability for a business may be determined by a company‟s ability to competitively direct innovation resources to address a constantly changing market and economic environment. The objectives of this study were first to determine the environmental challenges faced by MFPL, Second to establish innovation strategies adopted and third to determine the factors that influence innovation in MFPL. The research design used in this study was a case study approach. Primary data was collected using interview method, an interview guide with open-ended questions was applied. For Data analysis, Content analysis was used which was appropriate for the qualitative data. The findings of the study in regard to environmental challenges faced by MFPL were stiff competition, rising cost of doing business due to high cost of power and bad roads, rapid development in technology, unfavorable legislation and rising labour costs. The innovative strategies adopted by MFPL included finding new ways of doing things like introduction of new products , new process in manufacturing called Homogenization and the hub and spoke model for the distribution of the products which ensured that they reach the rural market effectively. The factors that influenced innovation in MFPL included management fostering an environment vi that encourages generation of new ideas, constant monitoring of the environment and partnering with the farmers. The study concluded that in today's rapidly changing business environment, managing innovation effectively has become an essential requirement for staying competitive and that Innovation strategies employed by MFPL have been successful in dealing with the changing environment. The recommendations of this study were that the government should be supportive in creating an environment that is encouraging to fruit manufacturers by protecting local products from unfair external competition and building capacity of the industry of fruit processing. Another recommendation is for MFPL to engage in extensive advertising including television advertising in order to reach a wider market.