UU-MBA717

Lucy Macharia

28 June 2019

15 GRAND STRATEGIES EVIDENT IN KENYAN COMPANIES

The 15 grand strategies highlighted include: Concentrated growth, Market Development, Product
Development, Innovation, Horizontal and Vertical Integration, Concentric and Conglomerate
Diversification, Turn-around, Divestiture, Liquidation, Bankruptcy, Joint Ventures, Strategic
Alliances and Consortia (Jain, 2016).

A number of these strategies have been implemented together and their collective usage has seen
various companies excel within their industries following improved performance and market
share domination. For instance, Barclays Bank of Kenya has taken up different strategies such as
market and product development, innovation as well as strategic alliances thus far (Olum, 2010).
The bank introduced Islamic Banking (market development) as a way of catering to the Muslim
market segment. Furthermore, the bank has introduced value added benefits to its existing
products (product development) as well as brought new products into the market such as Junior
Eagle bank account for children and Mwalimu Club for teachers which allows them to access
free mobile banking and account access. Also, the bank has new IT systems so as to provide
better customer service (innovation) like mobile banking services. Similarly, Barclays Bank has
partnered with different companies such as Kenya Power and Lighting Company (KPLC) and
Nairobi Water Company (account and non-account holders can pay their utility bills at any bank
branch), Safaricom (access to mobile payment options) and as a way of improving its service
delivery to customers countrywide (strategic alliances and consortia).

In the case of horizontal integration, Insurance Company of East Africa Limited (ICEA) and
Lion of Kenya Insurance Company Limited (LOK) merged in 2011 to form ICEA Lion which
“resulted in the creation of one of the largest insurance groups in the region, with well
established insurance operations in Kenya, Uganda and Tanzania as well as leading subsidiaries
in fund management and corporate trusteeship” Ngaru (2016).

Brookside Dairy Limited, has become the largest milk processing company in Kenya and this
can be attributed to its acquisition of rival firms such as Ilara, SpinKnit Dairy, Buzeki Dairy and
Delamere (concentric diversification) and its partnership with Danone (owns 40% shares)
(joint venture) which inevitably will lead to concentrated growth in the Dairy Industry through
the company’s access to Danone’s innovation team and milk products (Kariuki, 2015).

The above are some illustrations of how different strategies have been adopted by various
Kenyan companies.

References
Jain, T. (2016, March 12). Long Term Objectives and Strategies. Retrieved from SlideShare:
https://www.slideshare.net/TanishaJain1/ch-7-pearce-robinson-mcgrawhill

Kariuki, J. (2015, October 8). Brookside gets access to French partner’s flavours. Retrieved
from Business Daily: https://www.businessdailyafrica.com/corporate/Brookside-gets-access-to-
French-partner-s-flavours-/539550-2905208-11a2u68/index.html

Ngaru, B. W. (2016). An assessment of competitive advantage gained through horizontal

integration. A case of Insurance Company of East Africa - Lion Group . Retrieved from USIU-A
Digital Repository: http://erepo.usiu.ac.ke/11732/2646

Olum, A. A. (2010, October). Growth Strategies Adopted By Barclays Bank of Kenya Limited.
Retrieved from University of Nairobi Research Archive:
http://erepository.uonbi.ac.ke/handle/11295/14018