EFFECT OF COMPETITIVE STRATEGY ON PERFORMANCE OF BUS TRANSPORT COMPANIES IN MOMBASA COUNTY, KENYA
Abstract
The main objective of the study was to assess how Mombasa based bus transport companies’ performance is affected by competitive strategies. Using descriptive cross-sectional survey, data was collected through questionnaires from 122 respondents selected through simple random sampling. Data was analyzed using descriptive (mean and standard deviation) and inferential (Pearson’s correlation and regression) statistics with the help of Statistical Package for Social Sciences and presented using tables. The level of significance for the various inferential tests was set at alpha = 0.05. Pearson’s correlation test indicated that cost leadership strategy, differentiation strategy, and focus strategy had statistically significant and weak positive correlation with the companies’ performance while innovation strategy had statistically significant and moderate positive correlation with the companies’ performance. Regression analysis suggested that approximately 74.8% of the variability in the companies’ performance was explained by the competitive strategies adopted. In particular, the regression coefficients revealed that cost leadership strategy, differentiation strategy, focus strategy and innovation strategy had statistically significant and positive influence on the companies’ performance. The study concluded that adoption and effective implementation of cost leadership strategy, differentiation strategy, focus strategy and innovation strategy by the companies would contribute to an improvement in performance. The study recommended that the management of the bus transport companies should effectively adopt the different competitive strategies to their unique situations in order to gain high competitive advantage and increased returns. The study also recommended that the directors of the bus transport companies should develop policies that are supportive of the adopted competitive strategy. The study suggested that future studies should pay attention to other factors influencing performance of bus transport companies. The study should also be replicated in other industries in order to compare findings with an aim of generating more knowledge on competitive strategies and also assist companies to adopt effective competitive strategies for their unique situations.
Key terms: Competitive Cost Strategy, Differentiation Strategy, Competitive Focus Strategy, Competitive Innovation Strategy, Competitive Strategy, Performance
CITATION: Malika, A. O., & Kising’u, T. M. (2019). Effect of competitive strategy on performance of bus transport companies in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 6 (4), 18 – 34.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1369
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