INFLUENCE OF PORTER’S FIVE FORCES STRATEGY ON THE COMPETITIVENESS OF SMALL AND MEDIUM ENTERPRISES IN GARISSA COUNTY, KENYA
Abstract
The general objectives of this project was to evaluate the influence of porter’s five model strategy on the competitiveness of SMEs in Garissa County. The study used descriptive design. The study was limited to the Small and Medium Enterprises that operate in Garissa County. This study utilized a sample size of 54 respondents. The researcher used questionnaires and secondary data as the research instrument to gather the relevant information needed related to the study. The quantitative data was analyzed using descriptive statistics. In addition the study used multiple regression analysis to analyze the data. The study concluded that there is great significance of competitors in benchmarking; keeping the management on toes and increasing efficiency and effectiveness. Competitors remain the key to success and achievement of competitive edge through innovation. The study further conclude that the threat of new entrants applies to in the Small and Medium Enterprises due to the presence of various competing organizations performing similar roles and offering such products and services at lower rates. This study also concluded that the bargaining power of buyers in the Small and Medium Enterprises is critical in terms of understanding the firms’ buyers and successfully meeting their demands as a way of retaining them and achieving high customer satisfaction for repeat sales. The study finally concluded that substitute product constrains the ability of firms in an industry to raise prices. This study recommended that Small and Medium Enterprises should always consider how new technology advancement is going to improve on the products offered and their prices before making the strategic decision of adopting it for their operations. In response to the increasing number and strength of competitors this study recommended that the Small and Medium Enterprises should increase their product diversity and customize its products in a way that suits and retains the already existing customers as well as increase quality, efficiency and effectiveness in product delivery.
Key words: bargaining power of the buyer and supplier, threats of substitutes, new entrants & industry rivalry
CITATION: Rabi, H. Y., & Nyang’au, S. P. (2022). Influence of porter’s five forces strategy on the competitiveness of small and medium enterprises in Garissa County, Kenya. The Strategic Journal of Business & Change Management, 9 (1), 934 – 941.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2234
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