STRATEGIES ADOPTED BY MULTINATIONAL CORPORATIONS TO COPE WITH COMPETITION IN KENYA.
Multinational corporations (MNCs) operate in a global environment unfamiliar in political,
economic, social, cultural, technological and legal aspects. Increased competition among
multinational corporations and the entry of other players in the Kenyan market necessitate the
design of competitive strategies that guarantee performance. Creating strategies for coping with
competition is the heart of strategic management which is critical for the long term survival of any
organization. This paper examines the strategies adopted by MNCs to cope with competition in
Kenya. To establish the strategies adopted by multinational corporations to cope with competition
in Kenya, forty questionnaires were administered to senior managers of MNCs targeting 19
percent of the total population of 213 MNCs in Kenya .Stratified disproportionate sampling was
used to select the forty MNCs.
The main contribution of this paper is highlighting the fact that Multinational corporations should
initiate capacity building programs like training, scholarship awards and on the job training to
overcome the challenges of competition. The study recommends that, MNCs should utilize other
electric power sources to supplement their energy consumption needs. The government should
also provide infrastructure needed for MNCs including electric power to attract MNCs investment
in Kenya. This paper established that MNCs in Kenya have adopted a number of strategies
including: better quality, excellent customer service, innovation, differentiation, diversification,
cost cutting measures, strategic alliances, joint venture, mergers/acquisitions and not forgetting
lower prices, to weather competitive challenges.
Keywords: competitive strategies, Multinational corporations, competition, Kenya.