International Journal of Economics, Commerce and Management ASSESSMENT OF STRATEGIES FOR GAINING COMPETITIVE ADVANTAGE IN INSURANCE FIRMS IN THIKA TOWN, KENYA

Mary Kimani, Juma Wagoki
unpublished
Empirical models of competitive insurance markets are crucial in many respects. In Kenya there are many insurance companies due to the increased demand for insurance covers. The ever rising number of insurance firms presents unprecedented survival challenge to individual firms. Interpretatively, insurance firms unable to cope with the stiff competition are very likely to downsize their workforce or even close shop altogether. It is against this backdrop that the study was conducted. The study
more » ... ducted. The study aimed to assess the strategies for gaining competitive advantage in insurance firms in Kenya. Specifically, the three strategies of competitiveness namely cost leadership; focus and differentiation as suggested by Porters were examined particularly how they affect gaining of competitive advantage amongst insurance firms. The study was conducted in Thika town, Kenya. It adopted a descriptive research design. The target population for this study consisted of the 40 insurance officers working with the 20 insurance companies based in Thika town. The study established that the three generic strategies advanced by Porters had positive, strong and statistically significant influence on competitive advantage. In tandem, the study recommended that all the three strategies ought to be adopted by insurance firms in Thika town, Kenya as way of addressing competition in the sector.
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