EFFECTS OF COMPETITIVE STRATEGIES ON PERFORMANCE OF MANUFACTURING FIRMS IN KENYA; A CASE STUDY OF EAST AFRICA BREWERIES LIMITED

Abstract

The key concern over time in strategic management has been how to improve performance in firms. The changes and predictability in the external environment in which firms operate determines how they fit competitive strategies and their eventual performance. The choice of competitive strategies is partly determined by firm’s competitive forces in the market because firms have to match the turbulence in the environment with their aggressiveness. The general objective of this study was to determine the effect of competitive strategies on performance of manufacturing firms in Kenya with specific reference to East African Breweries Limited. This study may help improve the policy-making capacity in areas of competitive strategies and performance. Improved policies would be geared towards developing the required strategies that would enhance the competitiveness of manufacturing firms and enhance their performance. This study will be guided by Resource-Based View Theory, Structural contingency theory, game theory and strategic conflict model. A descriptive and qualitative research design based on a phenomenology approach was used in this research. The target population comprised employees of EABL especially those working in higher positions within the organization. Primary and secondary methods of collecting data were employed to collect the necessary data for the study. Questionnaires and interviews were employed as primary methods of collecting data. Secondary data was gleaned from already published sources on financial performance including financial statements from company websites, magazines and any relevant reliable sources of data. Both descriptive and inferential statistics was employed in data analysis. Regression analysis was used to determine the relationship between the independent variables and dependent variable. From the findings competitive strategies; cost leadership, differentiation and focus are critical because they influence decision making and organizational performance. The individuals who are tasked with selecting and developing competitive strategies should ensure that organizations have the right kind of strategies in competitive environment. Management in manufacturing firms should develop comprehensive internal organizational processes that will guide the development of strategies of the organization.