DETERMINANTS OF PERFORMANCE OF SMALL-MEDIUM FUEL DEALERS IN KENYA

Abstract

This study sought to establish the determinants of performance of small medium fuel dealers in Kenya. The specific objectives were: the influence of marketing methods on performance of small medium fuel dealers, find out if competitive strategy that is cost, differentiation, focus and speed influenced performance of small fuel dealers, assess whether establishment level influenced performance of small fuel dealers and examine if  long-term strategy influenced performance of small medium fuel dealers. This study design was descriptive research. The target population was 74 small medium fuel dealers. The sample size was 23 small medium fuel dealers which is 30% of the population. The research used questionnaire as the main data collecting instrument. Regression model, relative frequencies and percentages were used for data analysis. The data was presented using tables. The study established that there is positive correlation between independent variables (marketing methods, competitive strategy, establishment level and long-term strategy) and dependent variable that is firm performance. Multiple linear regression model used suggested that value of R squared=0.7662 that implied 76.62% of the variance in Firm Performance was accounted for by four independent variables, and the significant predictor of the dependent variable was at 1% level of significant. The study recommended that dealers should take marketing methods serious as it is the key to their success. It helps in discovering the areas affected by dealers’ growth and thereby helps in creating plans to cater for their customer needs. The dealers should consider establishment level as an integral part of their business by turning their initial challenges to be enablers that would propel them to reach the maturity age of ten years. The dealers’ representatives and leaders to be brought on board or allocated agreeable slots by the regulator to monitor the industry. The dealers should see long-term strategy of their businesses as critical element and invest in different areas, acquire assets or form an alliance with other companies in order to get large capital funds, spread risks between more partners, get survival skills from other partners and enjoy synergy due to combined efforts of varied partners.

Key Words: Marketing Methods, Competitive Strategy, Establishment Level, Long-Term Strategy