Effects of competitive strategies on performance of express connections limited in Kenya

Abstract

Competitive strategy is concerns with what a firm is doing in order to gain a sustainable competitive advantage. The stiff competition among the public transport companies and the entry of other players into the industry following the government plan to ban on fourteen seater passenger vehicles necessitate the design of competitive strategies to guarantee their performance. This study sought to determine the influence of competitive strategies on performance of Express Company Limited in Kenya. The study was guided by the following objectives; to determine the competitive strategies adopted and the effects of competitive strategies on performance of express connections Kenya Limited. The research used a case study approach to give an in-depth understanding of the competitive strategies on performance of Express Connections Limited. The study used both primary and secondary data where primary data was collected using an interview guide and secondary data was collected from audited financial reports and other publications at Express Connections Limited. Content analysis was used to analyze this data collected from the interviewees. The study established that Express Connections Limited adopted a number of competitive strategies; standard pricing was being used within the respective timings for instance peak and off peak differentiation, usage of standard colors so as to identify the fleet and the creation of a sister company to help build the bus bodies and in repair of the vehicles and segmented market on the basis of routes being covered by the fleets and zones in order to ensure effective coverage of all routes. The study concludes that service quality and customer relationship are the most effective competitive strategy used by Express Connections Limited as well as differentiation of services to suit their clients. The study recommended that the company continue investing and coming up with unique services so that they can differentiate themselves and at the same time continue innovating services which will compete with other companies’ and do aggressive marketing in order to change the perception which the customers have regarding the pricing. The study faced a limitation as regards to interviewee’s confidence that the information provided would not be misused but used for the purpose for which it was meant. The study was a case study of one company and therefore it may not be expanded to include more companies. Therefore the applications of the study findings are limited to one company. The study recommends that, further research could be expanded to include other companies in the transport industry in order to make a comprehensive conclusion. At the same time the same study should be carried on other industries especially in the manufacturing sector, to enhance comparison.