The Influence of Competitive Advantage Strategies on Performance of International Fast Food Franchises in Nairobi, Kenya

Abstract

The objective of the study was to determine the influence of competitive advantage strategies on performance of International fast food franchises in Nairobi Kenya. Specifically the study sought to establish the influence of cost, differentiation and focus strategies of international fast food franchises in Nairobi, Kenya. This research utilized a descriptive cross-sectional research design and out of the seventeen questionnaires administered to the respondents, all 17 were dully filled representing a response rate of 100%. Data collected was analysed using descriptive and inferential analysis. The study established that there is a significant relationship between the competitive advantage strategies and performance, with cost strategy, having greater contribution on performance followed by differentiation strategy and focus strategy respectively. The findings indicated that, International fast food franchises in Kenya have considered cost strategy as a significant factor in the influence of performance, hence considerations are given to lower said factors to improve on performance. It is recommended that organisations strive to be cost leaders in the market, by adopting cost cutting measures and improving on the quality of products and services they provide, thus increasing in profits and overall customer satisfaction, as well as focusing on innovative ways to entice customer‟s whist, focusing on specific means of keeping them interested. Continuous study is required in this field as, it was noted that the competitive strategies only affected 32.9% of the variables affecting performance; hence there are other areas of study to be involved that would also look into other sectors.