Abstract:
The purpose of this study was to examine the effects of generic strategies on the competitive advantage of Saracen Media Limited. The study was guided by the following research questions: What is the effect of cost leadership strategy on competitive advantage of media agencies? What is the effect of differentiation strategy on competitive advantage of media agencies? What is the effect of focus strategy on competitive advantage of media agencies?
A cross-sectional descriptive research design was adopted in conducting this study and addressed the questions posed above. The study used questionnaires to get data from respondents and used the census approach on the targeted population. The study population consisted of 120 Saracen Media Limited staff in Kenya, however only 86 responded resulting in a 71% response rate. The collected data was analyzed using descriptive statistics and regression analysis. Descriptive statistics was used to describe and summarize the data, whereas regression analysis was applied to determine the relationship between the dependent and independent variables, that is, the generic strategies and competitive advantage. The data collected was coded, edited and analyzed using Statistical Package for Social Science (SPSS).
The study found that during the implementation of cost leadership strategy, Saracen Media Limited stuck to its budget, monitored its costs on a daily basis, offered low-cost services without compromising quality, ensured their suppliers could easily access the firm and regularly conducted industry analysis and competitor analysis to reduce their relative service costs. The study found that during the implementation of differentiation strategy, Saracen Media Limited positioned itself in the market as a prestige brand by offering value-added services at premium prices. The firm also used the latest technology and substantial research capabilities to provide customers with high quality services. The study found that during the implementation of focus strategy, Saracen Media Limited utilized its staff’s specialized expertise to provide customized services and respond quickly to their clients’ changing needs. Through this, Saracen Media Limited was able to service a niche market, develop customer loyalty, and acquire new business through referrals hence achieving a competitive advantage.
