An Analysis of the Competitive Strategies Employed by Private Universities in Ke

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[a] School of Human Resource Development, Entrepreneurship and Procurement Department, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya.

[b] Faculty of Commerce, Kimathi University College, Nyeri, Kenya.

*Corresponding author.

Received 17 March 2012; accepted 24 June 2012

Abstract

The study discusses an analysis of the competitive strategies employed by private universities in kenya. Private Universities have embraced different strategies to counter competition. The study discussed how private universities have employed technology and innovation as a competitive strategy and how they have employed differentiation to give them a competitive advantage.

Results arising from the research suggest that private universities have embraced technology, differentiated their products and services and also products are leading in the market which has given them a competitive advantage over the others.

Some recommendation that the study made includes supporting e-learning and virtual schools which will enable each lecturer to participate in e-learning and explore creative ways to fund e-learning opportunities, encourage broadband access by thoroughly evaluating existing technology infrastructure, improve lecturer training, consider innovative budgeting and lastly strengthen leadership.

Key words: Universities; Education; Differentiation; Strategy and competitiveness

Lawrence N. Kimando, Grace Wachera Njogu, Maurice Sakwa (2012). An Analysis of the Competitive Strategies Employed by Private Universities in Kenya: A Case Study of Private Universities in Nairobi. Management Science and Engineering, 6(2), -0. Available from: URL: /index.php/mse/article/view/j.mse.1913035X20120602.3600

DOI: /10.3968/j.mse.1913035X20120602.3600

ACRONYMS

DBS: Direct broadcasting satellite

WBT: Web based training

TEL: Technology-enhanced leaning

CSCL- Computer supported collaborative learning

CBT- Computer based training

TCP/IP: Transmission control Protocol/Internet protocol

INTRODUCTION

Background of the Study

Competitive strategy refers to how a company competes in a particular business (note: overall strategy for diversified firms is referred to as corporate strategy). Competitive strategy is concerned with how a company can gain a competitive advantage through a distinctive way of competing. Having a competitive advantage is necessary for a firm to compete in the market but what is more important is whether the competitive advantage is sustainable. a firm must identify its position relative to the competition in the market by knowing if it is a leader, challenger, follower etc. it can adopt appropriate strategies to compete. A good strategist seeks not only to “win the hill, but hold on to it” (Subash, 2000). Sustaining competitive advantage requires erecting barriers against the competition by looking at the following: How you compete, basis of competition, where you compete, whom you are competing against and the ways to create barrier to competition (Aaker, 2011).

Some of the benefits of employing or having competitive strategies include; effectively supporting your company’s top line growth objectives by helping you develop a differentiated and sustainable competitive position, development of a best practice process to; asses your company’s strengths, assess the competitive situation and formulate the appropriate response. It enables your organization to achieve competitive advantage or deliver benefits that exceed those of competing products (Porter, 1985).

The private universities in Kenya are not a new phenomenon; their rapid growth over the last five years is raising questions about the standards in higher education. Kenya today has 8 public and 30 private universities of which 11 are in Nairobi city (with either full or interim charter and 20% of a total of 150,000 students attend private institutions compared with some 91500 in 2005 according to government statistics. An analysis conducted enrolment in private universities in 2012/2002 using the accredited/non accredited dichotomy shows that out of 9,129 students enrolled in these institutions, accredited/non, accredited institution have the bulk of the enrolment at 7,639 or 83.7% unaccredited take the remaining. The competition has made public universities to join the fray by opening new colleges in different parts of the country and introducing ‘parallel’ degree programs in response to spiraling demand for higher education and for the purposes of dealing with competition brought about by the mergence of private universities. The growth of private universities has been fuelled by several factors including limited opportunities available in public universities has been closures of state funded universities and the desire to complement government managed higher institutions of learning. Also, interestingly, two thirds of the new universities are run by religious organizations, mainly protestant churches, that try to attract their followers using it as a competitive strategy to achieving a competitive advantage and also to ensure that as young minds mature academically they stay within the faith. Competition in private universities has intensified dramatically over the last decades, in virtually all parts of the world. it was not long ago that competition was all but absent in the private universities sectors and in many other industries too. Markets were protected and dominant market positions were the rule. Even where competitors were present, rivalry was anything but intense. Stifling government intervention blunted competition as did outright cartels. (Porter, 1998).

1.2.2 Computer-based Training

Computer based training is a flexible, affordable solution for trainees and corporate training department alike. Blending the best instructor-led training classes with the convenience of computers which allow trainees to learn the material from a certified instructor but at their own pace. Courses are offered on CD, DVD, or as an online e-learning course. CBTs typically present content in a linear fashion, much like reading an online book or manual. For this reason they are often used to teach static processes, such as using software or completing mathematical equations. The term Computer-Based Training is often used interchangeably with Web-based training (WBT) with the primary difference being the delivery method. Where CBTS are typically delivered via CD-ROM, WBT are delivered via the internet using a web browser. Assessing learning in CBT usually comes in form of multiple choice questions, or other assessment that can be easily scored by a computer such as drag and drop, radio button, simulation or other interactive means. Assessments are easily scored and recorded via online software, providing immediate end-user feedback and completion status. Users are often able to print completion records in the form of certificates (Vaughan, 2010).

1.3 Cross-border Provision

A key feature of higher education differentiation within the countries covered in this study is cross-border provision. As a result of the financial constraints that limit the expansion of their physical and academic facilities, the higher education systems of the poorer or more populous countries of Africa are unable to accommodate the enrolment pressure exerted on them by the large numbers of school leavers from their pre-tertiary systems. Cross boarder educational activities, including the importation of courses and services and the physical movement of students across borders is, therefore, assuming important dimensions in Sub Saharan Africa. For example, many Nigerian students now attend Ghanaian universities on a full fee paying basis. Similarly, Nigerian universities have for a long time been training students from Cameroon and other neighboring countries. Senegalese higher education institution receives students regularly from other francophone countries in the sub-region who consider Senegalese qualifications of comparable standard to those obtained from France, but at a lower cost (Huisman, 1996).

The situation is repeated in East Africa where many Kenyan students study in Ugandan universities because higher education is cheaper there. South Africa has also become an attractive destination for student from nearly all English speaking African countries because of its diversified system, demonstrated quality and less expensive higher education compared to Europe and North America. While the importance of cross border provision cannot be denied as a way of improving access, it is legitimate to debate the extent to which it is increasing “knowledge diversity” in the country of student origin (Huisman, 1996).

1.3.1 Transferability of Credits

Transfer credit is evaluated only for the degree program to which students are admitted, and the amount of credit awarded is subject to change if students change degree programs. Courses applied toward the major may not be transferred to the University from another institution without special permission of the department. For credits transferred from a foreign institution, the University of Virginia grants credit for courses taken at recognized foreign tertiary-level education institutions. Foreign education institutions that are chartered and authorized by their respective national governments (generally through the ministries of education) are considered “recognized” (Altbach, 1999).

1.3.2 Admission Criteria

Universities across the nation have established criteria in the selection of students for admission. While the selection criteria vary among universities most universities use some combination of high school grade point average, high school and class rank. However, these admission criteria are valid in predicting academic performance and degree completion of students (Astin, 1996).

1.3.3 Academic Staff Mobility

The mobility of staff should contribute to strengthen international co-operation capacity of higher education institutions in third countries, with the production of new teaching material, as well as their management capacity. It should aim to consolidate and extend links between departments and faculties and to prepare for future co-operation projects between the universities. The staff mobility is also expected to lead to progresses in the application of ECTS or other systems for recognition of studies in the partner institution (Hopkins, 2011).

In order to be eligible, academic and administrative staff hereafter referred as “staff”, must be a national of one of the eligible countries, work in or be associated to a HEI within the partnership, the mobility assignments must be based on partnership agreements between the members of the partnership, and the individual staff must agree on the program of lectures to be delivered by the visiting staff, on the research activities or on the type of training to be followed (Sharman, 2000).

2. RESEARCH METHODOLOGY

2.1 Introduction

This chapter describes the methodologies, which were adopted when addressing the study objective. It also highlights the target population the researcher concentrated on during the study, the research design, sample and sampling procedures, instrumentation, and data collection procedures and data analysis methods.

2.2 Research Design

Research Design is a plan outlining how information is to be gathered for an assessment or evaluation that includes identifying the data gathering method, the instruments to be used, how the instruments will be administrating, and how the information will be organized and analyzed (Campbell, 1963).

The study adopted a descriptive research design since it is used to obtain information concerning the current status of the phenomena to describe what exists with respect to variables or conditions (Roson, 1993) in a situation by using questionnaires to fully describe the phenomenon and thus it well suits the objectives of the study.

2.3 Target Population

The study targeted 11existing private universities in Nairobi, Kenya which some are fully chartered and others operate under the letter of interim authority. It also targeted the total number of students in private universities which is currently 26,267.

Name of university Student Population

Kcau 2,700

Usiu 7,158

Catholic 3,149

Strathmore 3,651

Kiriri Womens 281

Pan Africa Christian 280

Aga Khan 279

African International 450

Adventist 400

African Nazarene 2,004

Daystar 5,915

Total 26,267

Source: Registrar office of each university, 2011

2.4 Sample and Sampling Design

According to (Mellenbergh, 2008), sample technique is a statistical determination of the appropriate sample size, which enables the researcher to generalize results obtained. The study adopted simple random sampling technique since it gives each respondent an equal chance of being chosen. From the target population of eleven private universities in Nairobi, target samples of five private universities were considered for the study i.e. KCAU, USIU, Strathmore, Daystar and Kiriri Women’s and a target sample of 10 students in each University.

2.5 Data Collection Instruments and Procedures

2.5.1 Sources of Data

The researcher used primary and secondary sources of data. Primary data was obtained from the employees through the use of questionnaires and interviews while secondary data was obtained from published reports, journals, books and internet web sites.

2.5.2 Data Collection Instruments

2.5.2.1 Questionnaire

In order for the study to be successful, the researcher prepared self-administered questionnaires. This provided a degree of anonymity for the respective respondents particularly if sensitive issues were to be involved. This helped to evaluate the quality of the research as is proceeds. (Kent, 1989)

2.5.2.2 Interview guide

The researcher interviewed a few employees because it was easy to obtain firsthand information and clarification where necessary and there was also personal contact between the interviewer and the interviewee and hence one was able to create a good rapport and also be able to read the body and facial language of the interviewee.

2.6 Data Analysis and Interpretation

It involved evaluating the findings obtained from the study and it is where the researchers gave meaning to the data collected in respect to ones desired objectives.

2.6.1 Data Analysis Techniques

Data was analyzed quantitatively by describing and summarizing it using descriptive statistics and this was to enable the researchers to meaningfully describe of scores. The data was analyzed in a systematic way so that it can come up with useful conclusions and recommendations. The researcher obtained detained information about the study and established patterns, trends and relationships from the information gathered.The researcher used frequencies which enabled arraying of the data. Percentages, measures were entered into the computer and analyzed by use of Microsoft Excel.

2.6.2 Data Presentation

The researchers interpreted the information collected from the respondents. Information was compiled once the questionnaires were completed and collected. The information was analyses and presented using statistical methods that is, pie charts and bar graphs.

3. DATA ANALYSIS AND INTERPRETATION

3.1 Introduction

This chapter analyzed the data collected using tools of analysis itemized in chapter three. Out of the 50 students in the 5 private universities in Nairobi sampled, only 40 students responded indicated by the table below.

Table 1

Findings on, Response Rate

Response Rate Frequency Percentage

Responded 40 80%

Did not respond 10 20%

Total 50 100%

Figure 1

Rate of Response

Table 1 and Figure 1 above show an 80% response rate which was considered adequate for the study.

3.2 Findings on Technology and Innovation as a Competitive Strategy Employed by Private Universities

Table 2

Findings on, Whether Universities Have Embraced Technology

Frequency Percentages

Strongly Agree 20 50%

Agree 15 37.5%

Strongly disagree 0 0

Disagree 0 0

Total 40 100%

Figure 2

Technology Embracement

Table 2 and Figure 2 above indicate that fifty percent (50%) strongly agree that their University has embraced technology, thirty seven point five percent (37.5%) agree, twelve, point five percent (12.5%) disagree, while none strongly disagrees that their University has embraced technology.

How does product leadership and marketing strategies give private universities a competitive advantage?

Private universities have embraced technology as a strategy to give them a competitive advantage over their competitors. This has enhanced learning, increased enrolment, eased the admission criteria and at the same time improved the mode of study. For example, universities have used Computer based training as competitively strategy which has improved efficiency in learning, increased computer literacy, helped in cost management and made distance not to be a barrier anymore.

Private universities have also o used differentiation as a strategy to give a competitive advantage that is they have used quality, price or cost, location, duration and embedded customer base to differentiate their products from others which has made their product from others which has made their products and services stand out. Lastly and not least, Private universities have also used product leadership as a strategy to gain a competitive advantage. That is, universities have tailored their products and services to meet the customer’s preference and this has led to increase ion enrolment, enriched their reputation and also led to increase in the cost.

4.2 Conclusions

The results obtained above were derived from the data collected from the intended sample. For the purpose of simplicity and understanding, the information was presented in graphs, pie charts and tables with accompanying explanations of what the data means.

Communicating products vision, reaching customers preference, providing market driven programs, differentiating the University by location, campaigning for academic staff mobility, used of computer based trainings, computer based learning are some of the major factors which have given private universities a competitive advantage.

4.3 Recommendations

Private Universities should consider innovative budgeting since needed technology can only be funded successfully through innovative restructuring and relocation of existing budgets to realize efficiencies and cost savings. This will determine the total cost for technology as a percentage total spending and thus they should consider a systematic restructuring of budgets to realize efficiencies in cost savings and relocation.

Private universities should improve lecturer training that is, lecturer have more resources available through technology than ever before but some haven’t received sufficient training in the effective use of technology to enhance learning thus hey should ensure that every lecturer has the opportunity to take online learning courses.

Private universities should support e-learning and virtual schools by providing every student access to e-learning, enable every lecturer to participate in e-learning training and also by exploring creative ways to fund e-learning opportunities.

Private Universities should encourage broadband access by thoroughly evaluating existing technology infrastructure and access to broadband to determine current capabilities and explore ways to ensure its reliability, encourage the availability of adequate technical support to manage and maintain computer networks.

Private universities should strengthen leadership. For higher education to benefit from the rapidly evolving development of information and communication technology, leaders at every level must not only supervise but provide informed, creative and ultimately transformative leadership for systematic change by developing partnership between universities and also the business community retool administrator education programs to provide training in technology decision making and organizational and invest in leadership development programs to develop a new generation of tech savvy leaders.

Private universities should employ multifaceted leaders who have a more holistic view of business, who can spot emerging opportunities and who can navigate through periods of decline as well as growth since they will be able to master new skills, explore diverse perspectives and develop new leadership styles transforming them into outstanding business leaders who have the judgment, confidence and skills to lead their organization in all economic environments.

4.4 Further Research

In view of the above shortcoming, the researcher recommends that future research should be carried out on the risks exposed to private universities which are affecting their performance.

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Chattered Private Universities in Kenya

1)? African Nazarene University

2)? Catholic University of East Africa

3)? Daystar University

4)? Kabarak University

5)? Kenya Methodist University (KEMU)

6)? Scott Theological College

7)? Pan African Christian University

8)? St. Paul’s University

9)? Strathmore University

10)?University of East Africa Baraton

11)?United Stated International University (USIU)

12)?Kimathi University College of Technology

13)?Narok University College

14)?Mount Kenya University (MKU)

15)?Kisii University College

16)?Multimedia University College of Kenya

17)?Pwani University College

18)?South Eastern University College

Private Universities operating under the letter of Interim Authority

19)?Aga Khan University

20)?Great Lakes University

21)?Kiriri Women University of Science and Technology

22)?Presbyterian University of East Africa

23)?Adventist University of Africa

24)?KCA University (KCAU)

25)?GRETSA University

Private Universities with Certificate of Registration

26)?The Nairobi International School of Theology

27)?Western Africa of Hospitality and Professional Studies

28)?The East African School of Theology

29)?The Nairobi Evangelical Graduate School of Theology

30)?Kenya Highlands Bible College