Abstract: The main objective of this study was to determine the effects of strategic responses on competitive advantage in the health insurance sector in Nairobi County. The independent variables were new products, information communication technology, and customer orientation and stake holders’ involvement with competitive advantage as the dependent variable. The scope of the study was the NHIF offices in Nairobi County where a total of 64 respondents were targeted. The study adopted a descriptive research design. Data was collected using Questionnaires which were both closed ended and open ended, where descriptive statistics will be utilized to organize and describe the data while excel computer package will be used to present the analysis in tables, pie charts and bar graphs. The study will benefit National Hospital Insurance fund in strategy formulation. The findings will also help NHIF in future policy making process as it will always be used as a reference tool. Other Institutions will use the report to benchmark their strategy formulation. Lastly, other Researchers will also base their studies on this study. The study established that NHIF has set various strategies which have boosted its competitive advantage and the effect of the competitive pressure faced by NHIF is moderately viable. In response to the competition NHIF has developed and launched new products in the past 5 years, the products have increased the strategic options by the firm and that the new products launched have been successful. ICT is a key element of NHIF’s strategic business plan and business objectives, NHIF has invested in adequate hardware such as PCs, Tablets, Printers and servers to support information systems, investment in ICT has improved the firm’s competitive position, the use of ICT tools has enhanced organizational effectiveness and reputation helping to overcome competitive pressure, NHIF was vulnerable to external competition due to lagging behind in the adoption of ICT and that NHIF has adopted an enterprise resource planning system (ERP). The study concludes that ICT has positive impact on organizational performance of all sampled organizations. The study further deduces that that NHIF’s customer orientation is excellent in its competitiveness. Customer orientation emphasizes the seeking of opportunities and constraints from the perspective of customers in order to create value for potential customers. The study concludes that managing stakeholder relationships can enhance the firm’s competitive and performance against others. The relationship between the organization and its stakeholders is designed to leverage the strategic and operational capabilities of individual participating organizations to help them achieve significant ongoing benefits. The study recommends that NHIF should strive to deliver products with benefits that exceed those of competing products by adopting differentiation strategy to realize differentiation advantage and overall gain a competitive advantage over other firms. NHIF should adopt new technologies are to save costs, to improve customer relationships, business processes and performance and to open new opportunities. NHIF should adopt customer orientation and then implement customer integration in order to receive a high level of competitive advantage. Stakeholder involvement the study recommends NHIF to recruit workers who have the necessary knowledge and competencies in the business to minimize on the induction and training costs.
Keywords: EFFECTS, STRATEGIC, COMPETITIVE.
Title: EFFECTS OF STRATEGIC RESPONSES ON COMPETITIVE ADVANTAGE IN HEALTH INSURANCE SECTOR (A CASE OF NATIONAL HOSPITAL INSURANCE FUND – NAIROBI COUNTY)
Author: MIRIAM WANGUI MACHARIA, PROF. MIKE. A. IRAVO
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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