Effect of competitive strategies on market performance of telecommunication companies: a case study of MTN-Uganda

Abstract

The purpose of this study was to examine the effect of competitive strategies on the performance of telecommunication companies: a case study of MTN Uganda Limited. The objectives of the study were; to determine the relationship between cost leadership strategy and market performance of MTN Uganda Limited, to determine the relationship between focus strategy and market performance of MTN Uganda Limited and to determine the relationship between differentiation strategy and market performance of MTN Uganda Limited. The study applied quantitative methods of data collection where questionnaires were distributed to 96 respondents. The data was analyzed at two levels and that is Univariate and bivariate. Findings revealed that there is a statistically significant relationship between capacity utilization of resources and market performance of MTN Uganda (p-value 0.006) and that there is a statistically significant relationship between economies of scale and market performance of MTN-Uganda (p-value 0.001).Results show there is a statistically significant a relationship between customer preference of services and market performance of MTN-Uganda (P-value 0.000) and that there is statistically significant relationship between income level of customers and market performance of MTN-Uganda (p-value 0.026 and there is a statistically significant relationship between advertising and market performance of MTN-Uganda (0.001) And the recommendations are; The management of MTN-Uganda should focus so much on the following factors; capacity utilization, cost control, economies of scale, preferences of services offered and advertisement in order to improve its market performance and the MTN should employ other competitive strategies such as CSR so as to attract more customers who at the end of the day will increase the sales of the company