Today?s organizations engaging in businesses have to contend with the
dynamics of a changing competitive environment. However the modern trend has
shifted from external environmental analysis only to more sophisticated internal
organizational analysis. The research is a case study on Uchumi Supermarkets, a retail
chain in the Kenyan market that has been in operation for more than thirty years.
Issues that the research considered include: the usefulness of combining retail market
segmentation with competitive analysis as a very effective method to understand the
dynamics of retail markets and to analyze strategic options for supermarket chains. To
determine how Uchumi has emerged and responded to competition in the industry. To
assess the characteristics of strategic management systems and implementation that
has been adopted by Uchumi and their effectiveness.
Various documents were used to collect data. The respondents were selected at
the researcher?s convenience making this study a purposive sample. The research
design used was descriptive and integrated both qualitative and quantitative methods.
The strategies adopted include differentiation, advertising, high quality products and
services and continuous training of staff. The study concluded that Uchumi has
adopted strategic processes and that is how they are able to address the issue of
competition considering they have recorded profits in the financial year ending 2007
after being placed under receivership in 2006.
The study recommends that companies continuously adopt strategic policies
both within the organization and externally while integrating its most important
resources (employees). Also, strategy formulation is not the work of managers based
at the head office as implementation is the duty of the whole organization.