Influence of Market Penetration Strategies on Organizational Growth in the Steel Industry in Kenya

Abstract

products offered are similar in nature and the nature of competitive rivalry is high. In these kinds of industries, firms that try to gain large market share make high returns and strive to survive and grow must develop a competitive strategy. Other companies have been kicked out of the business and shut down due to failure to adopt strategies for their survival and growth. The main aim of this study was to establish the influence of market penetration on organizational growth of Steel firms in Kenya. To meet the objectives of the study, the researcher used a cross sectional survey design. The population of the study comprised of all steel industries and firms in the Kenyan market. The target population were the key players of the 100 companies dealing with roofing products and steel beams and long products as per data from KAM database. Questionnaires was use to collect primary data, and data was summarized and analyzed using descriptive methods of statistics. The study found that market penetration strategies influence organizational growth of firms in the Steel industry. It was also noted that the companies in the Steel industry used a mixture of strategies which included marketing promotion and enhancing distribution channels promotion and advertising pricing and diversification. The study concludes that the penetration strategies are highly effective in any organisation as growth is dependent on them. This reflected in the market share attained by some steel manufacturing companies, increased profits and increased production. The study recommends that the Steel manufacturing firms in Kenya have to regularly carry out market research to analyze the prevailing market trends and gain understanding as they seek to identify their strengths, weaknesses and maximize on the opportunities and avoid threats. The findings of the study will therefore help companies find out if their strategy is in line with their set Vision and mission and realign their goals and objectives to ensure they are realistic and achievable.