Competitive Strategies and Performance of Supermarkets in Nairobi Central Business District

Abstract

Competitive strategy is the long term plan that a firm has for it to achieve competitive edge over its rivals in the business environment. Success and survival of an organization in a competitive business environment depends on how well it relates to challenges and how it positions itself in the business environment. The main purpose of this study was to establish competitive strategies and performance Supermarkets in Nairobi Central Business District. Specifically, the study set to establish the influence of differentiation, market focus and cost leadership strategies on performance of Supermarkets in Nairobi. The study employed a cross-section survey where eight Supermarkets in Nairobi were targeted. Both primary and secondary information was collected where primary data was collected through a questionnaire and secondary data was extracted from financial statements. The study employed both descriptive and inferential statistics to analyze that data. From the analysis of the findings, it was revealed that differentiation, market focus and cost leadership strategies influenced performance of Supermarkets in Nairobi. Thus, it was recommended that organizations should produce products of different quantities for different markets. This would greatly increase their market base because they will be in a position to access wealthy customers who can buy in bulk and the ordinary customers who can only afford small portions at a time. That Supermarket in Nairobi should embrace cost leadership by applying efficient technology to its business processes to make the work more effective and reduce on unnecessary manpower. This will lower the operational costs of the business translating to lower production costs hence pricing of organisation products at lower prices that will attract more customers, leading to better performance.