Development of competitive advantage in the apparel industry in Kenya

The Kenyan apparel industry has played a major role in the country's economic development; however, the sector's competitiveness has decreased due to inadequate industrial strategy and the loss of global markets resulting from the elimination of quotas in 2005. China's and other Asian countries' abilities have been able to produce quality products efficiently and at lower comparative costs has been threatening apparel manufacturers in Kenya. This paper examines how apparel firms could develop competitive advantages in both local and global markets. It uses Porter's (1998b) diamond model as a basis of analysis for interpreting competitive factors within Kenya's apparel industry. In addition to literature reviews, the paper provides an overview of Kenya's apparel sector business dynamics and its relationships with local and global markets. Conclusions are drawn based on Porter's analysis of theoretical models in relationship to Kenya's apparel industry business dynamics. Taking into account the global apparel business factors, recommendations are made on how the Kenya's apparel industry can regain business competitiveness.