An Application of Competitive Analysis Strategies on Organizational Competitiveness (A Case of University of Nairobi, Kenya)

Abstract

The purpose of this study was to apply competitive analysis model to the University of Nairobi competitive environment. This study uses Michael Porter’s five forces model as the framework for evaluation of the competitive environment of Nairobi University. The reviewed literature reviewed seeks to identify the key environmental forces and competitive drivers influencing the strategic choices that students make among competing universities in a competitive higher education environment. To collect data and information from the sampled respondents, a questionnaire was used. Information gathered through the questionnaires was sorted, coded and input into statistical package for social sciences (SPSS) to generate frequencies, descriptive and inferential statistics. It was found that cost is a key component of the university competitiveness and students peg their choice especially on the cost of boarding. This meant that the university had to prove value for money in order to justify students’ choices. It was found that students could easily influence the choice of a university. Lecturers’ strikes did not deter students from choosing a university, however the fame of the lecturers and their public relations skills were important in influencing students choice of the university. The power of buyers (students), power of sellers (lecturers), threat of new entrants and competitor rivalry were found to be key and significant in determining the competitiveness of the University of Nairobi. Only the threat of substitutes was found to have less effect on the competitiveness of the university. The university should continue to revise its policies and make them more aggressive, vibrant and in sync with changes in the operating environment. In particular all policies should be reviewed to ensure they are friendly to the students. The management should take a bold step and start admitting international students in all its courses.

Key Words: University of Nairobi’s Competitive analysis, Strategy, Competition challenges