Porter's Model & Response Strategies in Kenyan Public Universities

This case study examines the application of Porter's Five Forces framework in Kenyan public universities, drawing upon research by Mathooko and Ogutu. It explores how these forces—threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and competitive rivalry—influence the strategic choices of Higher Education Institutions (HEIs) in Kenya. The analysis highlights the high barriers to entry in the HE sector due to capital and fixed costs, the role of skilled labor as a supplier, and the increasing bargaining power of students as buyers due to the growing number of HEIs. It also addresses the threat posed by distance education and online programs, as well as the impact of government regulations and economic factors on strategic decisions. The study concludes that the application of Porter's framework enables HEIs to operate more strategically, leading to more efficient functioning and survival in a competitive environment. Desklib offers a wide array of resources, including solved assignments and past papers, to support students in their academic pursuits.

Running Head: STRATEGY 0
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BUSINESS STRATEGY

STRATEGY 1
Table of Contents
Introduction................................................................................................................................2
Framework and Discussion........................................................................................................2
Conclusion..................................................................................................................................4

STRATEGY 2
Introduction
The aim of this article is to state the use of Porter 5 competitive forces in align with the other
factors accepted by public academies in Kenya. The author Mathooko and Ogutu use
descriptive approach with the help of a cross-sectional survey in all the public academies in
Kenya. The main objective of this research is based upon higher education institutions (HEIs)
gaining competitive edge in the global environment and commodification of higher
education. Porter 5 competitive forces framework is shaped under a planned organisation
practice in the business domain.
Framework and Discussion
Porter 5 competitive forces framework is based upon a hypothesis that for the purpose of
development of various strategy, external environment plays a significant role. In this
framework, the five forces are –
The first force is directly linked to barrier to entry for that specific industry that drives
competition and has a significance influence on the profitability of industry. In relation with
threat of entry in Higher Education (HE), there is need to add more places (rising supply) can
tentatively diminish the cost per apprentice and, hence, propose the similar product
(education) for less (tuition cost). On the other side, the author argued that limiting entry by
discouraging willingness of consumers to purchase from a new arrival and by diminishing the
amount the new arrival could control until it develops up a set of more numbers of
consumers. In respect with HEIs, the blockades to entry are very high in the form of huge
capital and high fixed cost and this leads to sturdiest defensive force.
Threat of new
entrants
(First Force)
Bargaining power
of suppliers
(Second Force)
Bargaining power
of buyers
(Third Force)
Threat of
Substitutes
(Fourth Force)
Intensity of
Rivalry
(Fifth Force)

STRATEGY 3
In respect with second force, labour needs to be identified as a supplier in relation with HEIs.
There is a requirement for more skilful workforce in the form of researchers, lecturers and
managers. In relation to third force, in HEIs, the buyers are the parent or student as they
induced in the buying process of purchasing education from the institution. If the services
become more standardised, the buyers of the student increases and this also lower the
switching cost. The rising number of HEIs in Kenya in latest years offers student varied
option of selection both institution and cost.
In respect with the fourth force, various growing forces as distance education and online
programmes on a global level possess a threat to the HEIs. This is also a significance use of
the technology reduces the time during the course of completion of any respective course.
Fifth force of porter model brought various aspects like price discounting, introduction of
new products, using promotional tools and many more. In HEIs, it depends upon two
operational factors - industry framework and the profile of present institutes
Agreeing to the porter model, government can also affect various industry with their
legitimate influence. This framework acts as a pattern that specific establishments can use to
build unit-level exploration of their industry. In addition, there are various other factors
having direct impact on these five forces.
This study of HEIs will help in building appropriate policies and is also significant to various
number of stakeholders.

STRATEGY 4
Conclusion
The outcome from this study helps HEIs in Kenya to act as a business organization using
various application of strategies for the purpose of survival. This will also help HEIs to
identify and acknowledges the key activities of operations leading to strategic planning and
efficient functioning. The various application of PFCF will also have a significant impact on
the choices of responsive strategies. In addition, various other factors like economic
downturn and government regulations also seem to be a key role in influencing the choices of
various decisions.