EFFECT OF COMPETITIVE STRATEGIES ON THE ACHIEVEMENT OF COMPETITIVE EDGE AMONG ACCOUNTING FIRMS IN KENYA
Abstract
The dynamics in rapid changing of economic environment and market for accounting services in Kenya has continued to pose major challenges on the operation of the small and medium sized practices (SMPs) accounting firms in Kenya. A few of accounting firms continues to dominate the market space resulting to oligopoly situations and SMPs suffocation hence poor national economic growth. Therefore, the purpose of this study was to determine the effect of competitive strategies on achievement of competitive edge among accounting firms in Kenya. The study specific objectives included: To establish the effect of differentiation strategy on achievement of competitive edge among the accounting firms and to determining the effect of diversification strategy on achievement of competitive edge among accounting firms in Kenya. The study adopted a descriptive survey study design. The study target population comprised of a total of 200 persons who were employees and in supervisory positions drawn from 20 top accounting firms in Kenya; Purposive Stratified random sampling technique was used which enabled the researcher to draw a sample size for the study. The sample size of the study constituted 20% of each of the twenty study targeted top accounting firms ‘stratum; thus making it a total of 40 respondents of which the study collected data from by use of questionnaire respectively. Data was analyzed and presented by use of descriptive statistics. The results of the study showed that the majority of the study top target accounting firms had adopted, differentiation and diversification strategies and these strategies were core lead strategies that has made them to achieve a competitive edge hence assuming a huge market dominancy resulting to oligopoly which in turn has negatively affected the small and medium accounting firms in Kenya.
Key Words; differentiation strategy, diversification strategy, achievement, competitive edge
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.967
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