Influence Of Strategic Alliances On Performance Of Kenya Airways
Any company that aspires to industry leadership must think in terms of global and not local market leadership. The world economy is globalizing at an accelerating pace as countries previously closed to foreign companies open up their markets, and ambitious, growth minded companies race to build stronger competitive positions in the markets of other countries (Andrevski, 2014) The increased competition arising from the fast changing global market has resulted in a situation where majority of the companies are finding it difficult to go it alone (Bronder Pritzl, 2012) More than ever before, many of the skills, capacities, technologies and resources that are essential to a firm's current and future prosperity are to be found outside the firm's boundaries and outside the management's direct control (Peng, 2013) Therefore, relationships that tend to give a firm these competences that are outside its current tangible and intangible assets are important (Goerzen Beamish, 2015) Lin and Wu (2014) argue that in order to stay competitive and profitable, even the most capable and knowledge intensive companies have to identify and leverage on knowledge and resources produced beyond their own borders as part of the innovation process. This underscores the importance of strategic alliances for the survival of businesses. Strategic alliances offer a means for companies to access new markets, expand geographic reach, obtain cutting edge technology, and complement skills and core competencies relatively fast (Gomes Casseres, 2013) Abstract: This study sought to establish the influence of strategic alliances on performance of Kenya Airways. Specifically, the study sought to determine the influence of marketing and financial alliances on the performance of Kenya Airways. The study adopted a case study research design. The target population of the study was 600 staff of Kenya Airways. The study sample size was 60 respondents. The study was based on primary data which was collected using a questionnaire and an interview guide and secondary data which was obtained from the financial and management reports of Kenya Airways through a document analysis guide. Study data was analyzed through content analysis for the qualitative aspects and descriptive statistics for the quantitative aspects using the Statistical Package for Social Science (SPSS version 20.0) and presented through percentages, frequencies, mean and standard deviation. The study established that Kenya Airways had entered into various marketing and financial alliances aimed at helping it gain quicker access into new markets and broadening its present product line and markets and financing of its capital intensive projects including modernization and expansion of its fleet, product line and markets and meeting of its operational costs. The study concluded that Kenya Airways' marketing and financial alliances had helped the airline enhance customer experience and satisfaction, increase customer service efficiency and effectiveness, meet its operational costs, gain quicker access into new markets and broaden its present product line and expand and modernize its fleet.