Competitive Advantage Of The Business Environment

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Competitive advantage is a determining factor of the firm’s success. Barney (1991) defines competitive advantages as the degree to which a firm has reduced costs, exploited opportunities and neutralized threats. Competitive advantage is the ability of an organization to manage it differently by their competitors (Kotler, 2000). An organisation gains competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitor (Barney, 1991).

Competitive advantage of a business entails its ability to outperform its competitors. A competitive advantage exists when a firm has a product or service that is perceived by its market customers as better than that of its competitors
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According to Mason (2007) business environment is a complex adaptive system and therefore has an influence on the choice of strategic activities. Duncan (1972) described the business environment as the totality of physical and social factors taken into consideration by a firm when making all their decisions. Organizations are vulnerable to changes in their operating environment and this has great impacts on their operations. The firm 's environment consists of the remote environment, industry environment and the operating environment (Omollo,…show more content…
Organizations on the hand are environment dependent and environment serving. Organizations have to be aware of what is happening in the environment through regular scanning and analysis in order to how to respond to such changes either proactively or reactively. Failure to align the internal capability of the firm to its environment spells doom for the organization (Pearce & Robinson, 2002). Rapid change characterizes dynamic environments -- vigorous marketplace activity, new and evolving products, expanding markets, advancing technology, social revolutions -- and rapid change usually includes uncertainty.
1.1.4 Telecommunication Industry in Kenya
Telecommunication industry exists in a very dynamic environment that experiences new challenges every day. Therefore, the competitive advantage of the telecommunication industry exists in proper pricing, marketing and innovation
The history of the telecommunications industry in Kenya dates back to 31st December 1977 when an act of parliament was passed to allow the establishment of Kenya Posts and Telecommunications Company (KPTC). Previously the industry was managed by East African Posts and Telecommunication Corporation which was disbanded after the collapse of the East African Community (CCK,

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