AN ANALYSIS OF THE COMPETITIVENESS OF PRIVATE COLLEGES IN MOMBASA USING PORTER’S FIVE FORCES MODEL

Abstract

Liberalization and commercialization of the education sector has paved the way for the opening of many private colleges. This has therefore impacted on the state of competition in these training institutions. For private colleges to survive the already existing stiff competition it has become necessary for them to develop competitive strategies to enable them achieve competitive advantage over their rivals. The general objective of the study was to establish the competitiveness of private colleges in Mombasa using Porter’s Five Forces. Porters five forces were the specific objectives of the study and they include the threat of new entrants, the threat of substitutes products, the bargaining power of buyers, the bargaining power of suppliers and the role of competitive rivalry. The study was a quantitative research which used survey design to evaluate the state of competitiveness in private colleges in Mombasa. The population of study encompassed 35 colleges which were drawn from the colleges’ registration list from the Ministry of Education. Data was collected using questionnaires and reported using descriptive statistics, ANOVA and Regression Analysis. SPSS programme was used to analyze the data. It was found out that the threat of new entrants influences competitiveness at a mean of 2.39, which is a great extent. Threat of substitutes influences competitiveness at a mean of 2.42, which is a great extent. Bargaining power of suppliers influences competitiveness at a mean of 2.42, which is a great extent. The bargaining power of buyers influences competitiveness at a mean of 2.29, which is a great extent. Competitive rivalry influences competitiveness at a mean of 2.27, which is a great extent. Competitive strategies were also found to be used by the colleges though to a very low extent.