RELATIONSHIP BETWEEN MARKET PENETRATION STRATEGY AND CUSTOMER EXPERIENCE MANAGEMENT IN MOBILE SERVICE PROVIDERS IN KENYA

Abstract

One of the most important questions faced by business leaders in the strategic management process
is a choice of how to adopt a market penetration strategy whereby a firm gains more usage from
existing customers and also seeks to attract customers from existing competitors. The mobile
service industry has recently experienced a quick succession of mobile service innovations, in
deciding on the optimal timing of each service launch, carriers need to consider a complex array
of technological, regulatory, and strategic factors. In spite of wide-ranging research on market
penetration strategy, very little empirical research has observed the relationship between the
market penetration strategies and competitiveness in mobile telecommunication sector. Based on
this background, this study sought to investigate market penetration strategy and customer
experience management of mobile telecommunication service providers in Kenya. The study
population consisted of all the mobile Service providers in Kenya which according to a list
obtained from Communications Commission of Kenya as at July 2010 are four. Given the small
number of firms a census study was conducted. The findings of the study revealed that there were
mean differences in market penetration strategy implementation and customer experience
management between these four mobile service providers. This study was significant since it is
hoped that findings and recommendation of the study will provides a greater understanding of
appropriate market penetration strategy implementation framework as well as how market
penetration strategies influences customer experience management. In this sense, the study will
contributes to knowledge in terms of effective strategy implementation and its contribution to
organizational performance.