Competitive Strategies and Competitive Advantage of Small Medium Enterprises at Toi Market, Nairobi City County

Abstract

As competition intensifies in all business, few business environments can be assured of secure returns and it is therefore for this reason that the primary principle of a strategy should be to establish a position of competitive advantage for the business. The study aimed to establish the competitive strategies adopted by SMEs at Toi Market, Nairobi in an effort to achieve competitive advantage. The study which adopted a descriptive survey design, collected data using a structured questionnaire. The target population consisted of the traders who are tasked in the routine running of the SMEs at Toi Market, Nairobi. The study endeavored to select 10% of approximately 600 traders, that is, 60 traders, in the target population as this can be used to reasonably infer the characteristics of the entire population. A total of 60 (100%) respondents responded to the questionnaire. The data was analysed using Statistical Package for Social Science (SPSS). Descriptive statistics was provided in the form of frequencies, percentages and measures of central tendency, that is, mean, media and mode. Inferential analysis in the form of regression analysis was also applied to predict the relationships between the competitive strategies and competitive advantage. The findings of the study established that SMEs at Toi Market adopt competitive strategies in order to remain competitive. The findings also established a strong and positive relationship between the three generic completive strategies and competitive advantage. The study recommends that SMEs in Kenya should endeavor to adopt competitive strategies in order to survive in an ever changing environment. The study also recommends the need for continuous awareness targeted towards SMEs so as to empower those in the industry with the relevant knowledge on the role of competitive strategies and competitive advantage. The study also recommends the need for Government and policy makers to develop favorable polices and framework for SMEs. This is due to the vital contribution of SMEs in social economic development and more so providing employment, and like any business, those in the industry need to have adequate framework and strategies to thrive and sustain competitiveness.