International Journal of Innovative Research and Development

Abstract

To stay afloat and sustain its competitive advantage any organisation must continuously review its organisational strategies in line with the industry in which it operates. The ever changing environment has forced players in the petroleum industry to adopt various strategies so as to survive. This study investigatedthe effects of competitive strategies used by Independent Petroleum Companies (IPCs) of Nairobi, Kenya, on their market share and their daily operations.A survey research supported by a descriptive design was used in the study.A sample population of twenty seven (27) registered petroleum companies was purposively selected as the sample of the study.Results indicatethat different competitive strategies were used in different magnitudes by the IPCs. Low cost leadership and product differentiation were the least used competitive strategies. On the other hand, the use of market segmentation and convenience retailing strategies was very high. The study found a strong correlation (0.7) between the competitive strategies employed by IPCs and market share.The study also found out that apart from market segmentation and convenience retailing, other strategies like overnight parking of public service vehicles, car washing, tyre sales and vehicle servicing are also mostly used by independent petroleum companies to increase their market share in Kenya.The study majorly recommends that local independent petroleum companies should identify and capitalize on their strengthswhich they enjoy over their multinational competitors to compete effectively in the Kenyan market.

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