Factors Affecting Strategic Choices in Airlines in Kenya: A Case Study of Kenya Airways

Abstract

Airlines in the world continue to make strategic choices in order to improve on their product offer, enhance better service delivery, reduce on overall costs and cope with industry competition and challenges. The main purpose of this study was to determine the factors affecting strategic choices in airlines with a special focus on Kenya Airways. The specific objectives of the study were: to determine the effect of industry competitiveness on strategic choices in Kenya Airways, to establish the effect of leadership on strategic choices in Kenya Airways, to determine the effect of industry challenges on strategic choices in Kenya Airways and to determine the effect of organizational resources on strategic choices in Kenya Airways. The specific focus of the study was Kenya Airways, Moi Airport Mombasa in Mombasa County. The target population was 363 management level employees of Kenya Airways, Moi Airport Mombasa. The research adopted descriptive research design. Stratified sampling was employed and further disproportionate sampling to give top management more weight since they are deemed to have more relevant data in relation to the study. The sample size for the study was 36 respondents representing 10% of the population who were selected through stratified sampling. The study used both primary and secondary data. Primary data collection instrument used were questionnaires while secondary data was obtained from books, the internet and journals. The study concludes that factors affecting strategic choices in airlines in Kenya include Industry challenges, Organizational resources, Industry Competitiveness and Leadership among others. The researcher recommends more strategic efforts to cope with industry challenges such as safety, high fuel costs, economic challenges and the highly dynamic business environment. Airlines thus need to be more innovative in strategic choice decisions. In relation to resources the researcher recommends better prioritization in resource allocation and utilization in the industry. This will lead to better resource usage lowering of overall cost and putting more resources on identified viable strategic choices. It is critical for Kenya Airways to think of better ways of strategizing to be more competitive and minimize on the current heavy losses. Efforts have been made by Kenya Airways, the latest being the low cost ‘Jambo Jet’, but more needs to be done. The researcher also underscores the need for KQ to strive and improve on leadership which includes more capacity building for managers and directors.