Effect Of Market Segmentation on a Company’s Competitive Advantage: A Case of Safaricom Limited

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Date

2017-04

Journal Title

Journal ISSN

Volume Title

Publisher

Daystar University, School of Business and Economics

Abstract

Numerous researchers have hypothesized that the source of competitive advantage is superior customer services, high-quality products, convenient geographic locations, lower cost achievement compared to rivals. This study set out to look at the effect of market segmentation on a company’s competitive advantage, case in point Safaricom Limited. The study was guided by the following objectives: To establish the types of market segmentation being used. To establish the criteria for market segmentation being used. To assess the effect of market segmentation. To identify the challenges of market segmentation. The study used a descriptive research design. The target population in this study constituted of Safaricom employees, located in the headquarters in Nairobi, in the Consumer Business Division which was made up of 158 employees. The sampling technique used was stratified random sampling with questionnaires serving as the primary data collection instrument. Statistical Package for Social Sciences (SPSS) version 20 was used to analyse the data. The key findings of the study were; market segmentation that was noted to be highly implemented was demographic segmentation followed by psychographic segmentation and behavioural segmentation, the criteria that were mostly used for market segmentation were response differences, stability over time and identifiable market segments as agreed upon by 64.3%, 46.4% and 46.4% respectively and Safaricom had been able to increase market efficiency, manage risk, increase market share and acquire and retain customers to a very great extent as noted by 35.7%, 50%, 46.4% and 57.1% of the respondents respectively. From these findings, the study was able to conclude that Safaricom had been able to increase market efficiency, manage risk, increase market share and acquire and retain customers to a very great extent.

Description

MASTER OF BUSINESS ADMINISTRATION in Marketing

Keywords

competitive advantage, superior customer services, rivals, Consumer Business Division

Citation

Kerre, P. (2017). Effect Of Market Segmentation on a Company’s Competitive Advantage: A Case of Safaricom Limited. Daystar University, School of Business and Economics