COST LEADERSHIP STRATEGY AS A DRIVER AND PERFORMANCE OF UNILEVER KENYA LIMITED IN NAIROBI CITY COUNTY KENYA
Abstract
Unilever Kenya Limited has recently reported poor financial results, raising concerns among investors and stakeholders. The company's performance has been characterized by several key challenges that have contributed to its subpar results. Consequently, this research aimed to examine the influence of cost leadership strategy on the performance of Unilever Kenya Limited in Nairobi City County, Kenya. The study was guided by: human capital theory, generic Porter’s strategy model. This research employed a descriptive research design. The subject of analysis was Unilever Kenya Limited. The study focused on 125 employees from different departments within Unilever Kenya as the units of observation. This study adopted a census technique where every individual was incorporated. The pilot test was done at the Kericho tea Company in its offices, which falls under the tea sector. Piloting consisted of 12 respondents. The study adopted the following validity testing methods including construct, content and face validity testing. This study used internal consistency method to check and ensure the questionnaire is fit using Cronbach Alpha test. The analysis incorporated descriptive statistics like frequency counts, percentages, means, and standard deviations, along with inferential statistics employing Pearson correlation to investigate connections between study objectives. Multiple regression analysis was performed to evaluate the direction and intensity of these relationships. The study revealed that cost leadership strategy, had a positive significant relationship with the performance of Unilever Kenya Limited in Nairobi City County, Kenya. The study concludes that Unilever offer competitive prices by prioritizing cost efficiency, attracting a wider customer base in a price-sensitive market leading to increased sales volume and a larger market share, essential for growth in a competitive landscape.
Key Words: Cost Leadership Strategy Driver, Performance
CITATION: Too, C. C., & Makhamara, H. F., (2025). Cost leadership strategy as a driver and performance of Unilever Kenya Limited in Nairobi City County Kenya. The Strategic Journal of Business & Change Management, 12 (2), 509 – 518. http://dx.doi.org/10.61426/sjbcm.v12i2.3224
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3224
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