DIFFERENTIATION STRATEGY EFFECTS ON PERFORMANCE OF MILK PROCESSING FIRMS IN KIAMBU COUNTY, KENYA
Abstract
This study determined the differentiation strategy effects on performance of milk processing firms in Kiambu County, Kenya. This study was anchored by Strategic Balance Theory, Knowledge-Based Theory and Resource-Based View Theory. This survey used a descriptive research design. The population consisted of 11 milk processing firms in Kiambu County. The target population was derived from 11 milk processing plants in Kiambu County. The questionnaire was utilized to gather primary information. The self-administered questionnaire approach was utilized in this survey. With the aid of SPSS V. 26 software, the data gathered for this survey were analyzed inferentially and descriptively. The link between the variables under inquiry was examined using inferential statistics. In this research, regression analysis and correlation were employed to evaluate the degree and direction of linear relationship between variables using Pearson R correlation. The results were exhibited through tables. The results of the research indicated a strong correlation between the differentiation strategies employed and the performance of the milk processing firms, with a P-value of <0.05. Also, the results uncovered that coefficient of adjusted R2 was 0.745 which translates to 74.5% of performance in milk processing firms can be explained the following variables; product differentiation, service differentiation, market differentiation and content differentiation. The study concluded that differentiation strategies studied positively impacted the performance of milk processing firms. Differentiation involves offering unique features, benefits, or characteristics that distinguish a firms’ products or services from those offered by rivals. The research recommended that administration of the company should conduct thorough market research to understand customer needs, preferences, and unmet demands in the milk processing industry. Utilize consumer insights to identify areas where differentiation can be most impactful.
Key Words: Product Differentiation, Service Differentiation, Market Differentiation, Content Differentiation
CITATION: Modi, B. O., & Wambua, P. (2024). Differentiation strategy effects on performance of milk processing firms in Kiambu County, Kenya. The Strategic Journal of Business & Change Management, 11 (1), 213 – 231. http://dx.doi.org/10.61426/sjbcm.v11i1.2850
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i1.2850
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