MURITHI ADSON

PRESBYTERIAN UNIVERSITY OF EAST AFRICA

DR SAMUEL NYAGUCHA ORESI

PRESBYTERIAN UNIVERSITY OF EAST AFRICA

CITATION: : Murithi A. & Oresi S. N. (November, 2018). Competitive strategies adopted by beverage industries in enhancing market sustainability in Kenya. A case study of East African Breweries limited. International Journal of Economics and Finance (IJEF) Issue No XI, Volume 4, pp 191-211.

ABSTRACT

Beverage Companies are faced with critical economic challenges leading to the inability of many companies to survive and hence the nomination of the beer and soft drink industry in Kenya by one or two Companies in each. The objective of this study was to establish the competitive strategies adopted by beverage industries in enhancing market sustainability in Kenya. The specific objectives of the study were to find out how pricing, packaging, promotion and quality enhance market sustainability in beverage industry in Kenya. The study adopted theories like Dynamic Capability Theory, Resource Based Theory, Knowledge Based Theory and Competitive Advantage Theory which shows how organizations are able to attain market sustainability by building competitive strategies based on those theories. The research was a case study of East African Breweries limited. The researcher targeted a Population of 300 and a Sample size of 150 stakeholders of East African Breweries Limited. Both primary and secondary source of data were used. The study used questionnaires, unstructured interviews and company records to gather information. The questionnaire contained open and closed ended questions that were administered and used to collect data from top management and middle managers. Data was analyzed through descriptive analysis based on the time series. Data was presented by use of tables, charts and graphs. The study established that East African Breweries Limited had adopted various competitive strategies that enabled the Company to have continued sustainable competitiveness. The strategies include focus strategies, differentiation strategies and cost leadership strategies. The Company intensively used focus and differentiation strategies in order to get advantage of price changes and packaging designed based on customer taste, preferences and income. From the findings, it was revealed that pricing had a strong effect on the competitiveness of the product. However, packaging did not have a strong effect on the competitiveness of the products. The study recommends that companies in the beverage industries should continue using strategies leading to high quality products at a minimal cost. The study further recommends that companies in the industry should focus more on the regional markets because the local markets have been saturated by the current players.

Keywords: :Market, Pricing Quality, Promotion, Packaging and Strategy.
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