Competitive Strategies and Competitive Advantage of Large Manufacturing Firms in Nairobi, Kenya

Abstract

The environment is faced with constant changes which make it dynamic and complex. Due to this, firms have been compelled to adopt competitive strategies in order to gain competitive advantage over their rivals. The research objectives was to identify the competitive strategies used by large manufacturing firms in Nairobi, Kenya and to establish the influence of competitive strategies on the competitive advantage of large manufacturing firms in Nairobi. This study will be based on three theories: in porter‟s theory of competitive advantage, the reconciliation of opportunities and threats of a firm that gives a firm it competitive advantage are explained. The resource-based theory of competitive advantage explains that a firm relies on the application of a set of important resources that are at firms‟ disposal. The dynamic capability theory is the ability of the firm to integrate, build and configure internal and external competences to tackle fast-changing environments. This research employed a descriptive research design. Questionnaires were used in data collection and included both open and close ended questions. The population under study consisted of fifty six (56) manufacturing firms in Nairobi hence a census study was adopted. Collected data was summarized, coded, classified and tabulated using statistical package for social sciences (SPSS) data output was presented using statistical measures such as such as measures of central tendency and inferential statistics such as multiple regression analysis. Based on the findings in relation to specific objective, the study concluded the study concluded that competitive strategies positively lead to competitive advantage. Competitive strategies influences customer satisfaction, ensures superior quality services and products, customer oriented products, and positive feedback from customers. The key recommendations included adopting competitive strategies so as to improve the organization‟s performance through increasing customer base, asset quality, quality of service and increased market share. for organizations to perform effectively on their financial performance ,clear strategies that guide their operations should be formulated and guidelines provided to all the concerned departments in order to eradicate occurrence of compromise. To enhance customer satisfaction and eventual performance customers should be treated well customers should be treated well since they are the key assets in the organization‟s survival hence strategies set should focus on the quality of service. Strategic change should be adopted so as to improve performance.