Market Segmentation Strategies Used as Competitive Advantage Tool: A Case of Chloride Exide Kenya Limited

James Kimutai Yabs


Contemporary marketing strategy development includes such concepts as segmenting, targeting, and positioning (STP of marketing). The determination of a viable target market is the first step. Positioning strategy is linked to lifestyle market segmentation. . A firm’s relative position within its industry determines whether a firm’s profitability is above or below the industry average. The fundamental basis of above average profitability in the long run is sustainable competitive advantage. Most forms of competitive advantage cannot be sustained for any length of time because the promise of economic rents drives competitors to duplicate the competitive advantage held by any one firm. The energy sector in Kenya has undergone a lot of fundamental changes in the recent past aimed at revamping and strengthening it. The main challenges identified in this study were inadequate staff capacity, ignoring potential audiences, resistance from the market, cannibalization, inefficient resource utilization and increased costs. Customers’ needs are not static hence the management has to continually keep abreast with developments and reactions in the market in order to ensure continued success for the company. The study indicated that the implementation of segmentation strategy is long term in nature. Further as the environment responds to the implementation of strategy is necessary and thus formulation is under constant review to accommodate effects of the interaction between the organization and environment

Keywords: Market Segmentation, competitive advantage, positioning, targeting

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