1.1 Background of the Study
Strategy has been defined as the game plan management has for positioning the company in its chosen market arena, competing successfully, pleasing customers and achieving good business performance (Thompson & Strickland, 2008). Historically, companies have competed predominantly based on how to gain the largest share of market space. Porter’s (1985) theories encourage companies to choose whether to focus on differentiation, cost leadership, or focus. Thompson, Strickland & Gamble (2008) extend the argument of competing for market share in the historical manner but add a new competitive frontier of seeking an uncontested space and playing there in.
The business universe can be said to consist of …show more content…
It is a 4.2% by pale lager. The brand was first marketed in 1923, shortly after the founder of Kenya Breweries Ltd, George Hurst, was killed by an elephant during a hunting accident. It was in this year that the elephant logo, that is synonymous with Tusker Lager, was incorporated. The company also makes Uganda Waragi, a 40% by-brand of Waragi and the leading branded distilled beverage in Uganda. It is made from millet, and triple distilled. It is known in Uganda as The Spirit of Uganda, or simply UG. The main markets include other African countries such as Rwanda, the Democratic Republic of Congo and Sudan. In 1965, The Enguli Act decreed that distillation would only be legal under license, and distillers should sell to the government run Uganda Distilleries Ltd – which produced a branded bottled product, marketed under the name Uganda …show more content…
Already, executives at East African Breweries Ltd (EABL), which currently controls about 85 per cent of Kenya’s formal alcohol market are offering new brand drinks to gain competitive edge over rival competitors in the markets such Keroche Industries.
1.2 Statement of the Problem
Enhancing competitive advantage is not automatic and is especially true in this very unpredictable and dynamic environment. Challenges from both the external and internal environment need to be managed effectively so as to keep the organization growing. Sustained competitive advantage exists when competitors are unable to duplicate the benefits of the strategy over time (Barney, 1991)
A company has a competitive advantage whenever it has an edge over its rivals in securing customers and defending itself against competitive forces (Powell, 2001). Competitive advantage is born out of core competencies that yield the long term benefit to the company. Porter (1985) noted that a core competence as an area of specialized expertise that is the result of harmonizing complex streams of technology and work activity. According to Cross, (1999), competitive advantage can be developed from a particular resources and capabilities that the firm possesses that are not available to