Competitive Strategies Used by Real Estate Development Firms in Nairobi

Abstract

The study aimed at establishing the competitive strategies that real estate forms adopt in Nairobi, Kenya. A cross sectional descriptive survey design was employed in the study with data collection taking place at a single point in time. The objective of the study would be sufficiently met with this type of a study. The study was also descriptive in nature. The population consisted of all real estate development firms registered in Kenya. There were a total of 46 registered real estate development firms in Kenya as at 31st July 2018, according to the Association of Real Estate Developers of Kenya. Owing to the size of the population, this study was a census study. Essentially therefore all 46 firms were involved in this study. Guided by the objective of the study, the researcher deemed primary data to be sufficient for data analysis. A structured questionnaire was used in collecting data. Descriptive statistics were used in analyzing data, which comprised of the standard deviation and the mean. Descriptive statistics would give the researcher an idea about the manifestation of the variable under study. Correlation analysis was used to establish any relationships among the items under investigation. , most firms indicate that they differentiate on the basis of brand image ( Mean = 4.678, Std Dev. 0.121). This means that firms in the real estate industry view the firm „s brand image as a very important aspect of their competitive strategy. Brand image is argued to be one of the strongest points of creating competitive advantage because it cannot be copied or replicated by the competition. Differentiation using features and technology were also noted to be very important sources of competitive advantage ( Mean= Greater than 4.000). firms in the real estate sector do take segmentation seriously ?( Mean= 4.678, Std. Dev=0.023). The fact that firms in the sector also serve on the basis of income levels of particular segments indicates that segmentation is mostly on the basis of demographic variables of the buyers. It is recommended that future studies be longitudinal in nature. A longitudinal study enables data collection across more than one point. This design will take care of the problem that cross sectional studies can only enable data collection at one point. Competitive strategies may be used for a certain period of time after which different ones are adopted. It is also recommended that a study in which all real estate firms in Kenya are included be carried out. This will make it possible for the findings to be generalized across the board.