Abstract:
Many businesses are started but after a short while they are closed. They often start off
on a high note but after a few months they begin losing customers. The sales volume
decline, profits dwindle, and retrenchment begins. Various factors are attributed to the
high failure rate of the businesses in Kenya. Some of these factors include: competition,
poor management, and lack of capital, among others. The study aimed at identifying the
competitive marketing strategies used by SMEs in mobile phone outlets, establishing
whether these strategies affected performance, assessing the operator's knowledge about
the mobile telephone market and coming up with policy recommendations to help spur
growth in the mobile telephone sector. The study employed a descriptive survey
targeting SMEs operating mobile phone outlets in Eldoret town. The units of analysis for
this study were managers and employees working in the industry. The total target
population constituted 375 registered mobile phone outlets within the central business
district of Eldoret town. The study selected 40% of the target population forming 150
respondents. Questionnaires were the main instruments for data collection. Data was
analyzed using descriptive methods. The results from the study showed that 64% of the
respondents applied the knowledge of competitive marketing strategies in their
businesses. It was also acknowledged by the same percentage of respondents that
competitive marketing strategies affected the performance of their businesses. 76.6% of
the respondents had an understanding of the mobile phone market after acknowledging
employment of market survey techniques. Findings were presented in the form of
distribution tables, graphs and pie charts. It is hoped that from this study entrepreneurs
will be able to add to their existing knowledge the various competitive forces the SMEs
utilize. Mobile phone operators will take their own initiative and take up creativity and
innovation in their businesses in order to remain competitive. Mobile phone operators
will improve on their management skills so that they can deal competently with their
customers. Infrastructure will be improved in order for the mobile phone operators to
operate in a conducive working environment.
