Influence of Corporate Cost Leadership Strategies on Organizational Performance among Mobile Service Providers: A Comparative Analysis of Safaricom Plc and Airtel (K) Ltd in Kenya

Abstract

The study objective was to comparatively determine the influence of corporate cost leadership strategies on the organizational performance of Airtel and Safaricom. The study applied quantitative approach, used positivism paradigm, and adopted correlational research design. The target population was 235 managerial staff of Safaricom and Airtel and used a census approach. The data was collected using questionnaires and secondary data collection sheets for the period 2013 to 2022. Descriptive statistics and multiple regression analysis were used to analyze the data. Tables and figures were used in the presentation of the data. From the correlation analysis, corporate cost leadership strategies (r=0.283, p<0.05) were established to be positively correlated to performance of mobile service providers in Kenya. The study concluded that cost leadership strategies aid in optimizing costs, offering competitive prices based on customer numbers, and diligently curtailing operating expenses and thus affecting performance of mobile service providers. The study recommends that mobile service providers continually refine operational efficiency. Regular evaluations of processes can uncover inefficiencies that, when streamlined, lead to significant cost reductions.