Strategy implementation for survival and growth among Car rental businesses in Zimbabwe

Abstract

The Zimbabwean economy has been declining, with inflation rising and a crippling credit crunch. These factors have made strategy formulation and implementation very important as firms strive for survival and growth in an economy fraught with challenges. The car rental industry is an important sector in the business which is rarely viewed on its own but rather is viewed as a component of the tourism industry. This study therefore endeavoured to understand how Car rental businesses were going about with strategy implementation for growth and survival The study sought to understand the challenges bedevilling the car rental businesses and the strategies they have employed to try and overcome those challenges as well as to understand how the approaches used in the strategy formulation processes impacted the strategy implementation. The study was carried out using a descriptive survey research design and employed interviews as a way of gathering data. The Study used a Qualitative methodology and managed to meet its study objectives The study found out that the challenges affecting the Car rental businesses are liquidity crisis, low sales volumes, competition from other organisations as well as lift hailing applications such as Vaya, and failing infrastructure such as terrible roads and electricity. The study also revealed that most organisations lack a written strategy and also have an informal approach to strategy formulation which has a negative impact on strategy implementation. The study also identified a number of determinants for successful strategy formulation and implementation. The study also established the strategies employed by Zimbabwean Car rental firms for survival and growth such as flexible pricing, cost cutting, market expansion and product development The study recommends formalised and effective communication systems, training and education of staff and owners/members in strategy formulation and implementation among, development of robust strategy implementation mechanisms as well recruitment of qualified personnel as well as capacity development of hired employees.