COMPETITIVE STRATEGIES AND ORGANIZATIONAL PERFORMANCE OF MOMBASA MAIZE MILLERS, MOMBASA COUNTY
Abstract
This study investigated the influence of competitive strategies on organizational performance of Mombasa Maize Millers in Mombasa County. The study employed descriptive research design. The target population was management staff of Mombasa Maize Millers in Mombasa County Head Office. The study adopted stratified and simple random sampling technique to derive the sample size of 96 respondents using Yamane statistical formula. Data was collected by use of semi-structured questionnaires whereas secondary data was collected from company annual reports, published journals and existing researches. Collected data was checked for correctness and analysed quantitatively by use of Statistical Package for Social Science (SPSS) version 25 tool. Descriptive analysis was determined by use of mean and standard deviation while regression analysis was determined by model summary, ANOVA and regression coefficients. Correlation analysis was also computed to determine the nature of relationship between the variables. The study findings indicated that cost leadership strategy, differentiation strategy, focus strategy and innovation strategy have a significant influence on organizational performance. The study concluded that the firm has standardized its products to tap on the benefits of economies of scale. The company critically looked on the costs of inputs and distribution systems to ensure they are reasonable and the company developed strict cost control policy and controlled its overheads with strictness to ensure they were low. The company produced variety of product brands in different sizes and continuously invested in new product development to differentiate its market offerings from the competitors. The study concluded that the company offered products that served a particular type of customers’ needs and preferences and that the company offers low cost products option to specific customers who are in the low income bracket. The study recommended that the company management should endeavor on product standardization which favors mass production hence reaps economies of scale benefits. This strategy would make it possible for the company to be a cost leader in the market. The company should nurture innovation culture in its employees. This would make it an innovation hub which would result in high quality products. This move would make the company stand out in the midst of its competitors.
Key Words: Cost Leadership, Differentiation, Focus, Innovation Strategy
CITATION: Munyithya, N. N., & Kavale, S. (2022). Competitive strategies and organizational performance of Mombasa Maize Millers, Mombasa County. The Strategic Journal of Business & Change Management, 9 (4), 368 - 382.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2418
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