Competitive Strategies Adopted by Small Scale Enterprises in Exhibition Halls in Nairobi
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Date
2004Author
Namada-Mulaa, Juliana
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Small-Scale enterprises within Nairobi Central District have witnessed dramatic changes as a
result of Business Clustering. This has impacted significantly on the state of competition.
For enterprises to survive this stiff competition, it has been necessary to develop competitive
strategies to enable them achieve a competitive advantage over their competitors.
This study sought to establish and document the various competitive strategies being adapted
by small-scale enterprises to compete effectively. The study also sought to establish factors
that determine the competitiveness of enterprises within business clusters. The study focused
on 40 small-scale enterprises that had been sampled; only 30 responded positively to the
study.
Data was collected through questionnaire method. Questionnaires were administered
through personal interview and drop and pick method. Drop and pick method was used
where target respondents were not easily available in their outlets. On one hand
differentiation strategy was apparent with enterprises located within the city center while
those located on town..•peripheries had deliberate attempts to adapt cost leadership strategy .
From the analysis it was established that small-scale enterprises used generic strategies to
some extent in an attempt to gain competitive advantage. Cost leadership strategy had a -
mean score of 2.88, differentiation had 2.36 while focus strategy had a mean Score of 2.52.
IX
The standard deviations for these strategies did not vary significantly. It shows that these
strategies were uniformly used by most enterprises within clusters.
There are several factors determining the competitiveness of enterprises within Nairobi
central business district. Research findings on one hand showed that the major determinants
of competitiveness were offering variety of products which had a mean score of 1.87,
ensuring high quality had a mean score of 1.83, strategic location had a mean score of 1.50,
offering discounts and the ability and skills of the enterprise owner. Small scale enterprises
should also use other strategies to remain competitive like bench marking, training staff in
customer care and carrying out continuous research to keep pace with the ever changing
customer preferences.
Citation
Masters of business administrationPublisher
Univesity Of Nairobi Faculty of Commerce, University of Nairobi.