Effect of market strategies on the financial performance of media houses in Kenya
Kaburu, Sophia M
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Decisions by managers have a strategic impact and contribute to strategic change in an organization. The organization is shown as one of a number of competitors in an industry; and to a greater or lesser degree these competitors will be affected by the decisions, competitive strategies and innovation of the others. Therefore various firms in a similar industry for instance the media industry need to come up with competitive strategies to ensure a secured position in the market. The major objective of the study was to identify the market strategies used by media houses in Kenya and to determine the effect of such strategies on the financial performance of the media houses. The study was carried out on 10 media houses in Kenya. This being a census survey, no sampling procedure was required. Primary data was collected from the managers of the media houses using structured questionnaires. Secondary data was also collected on the financial performance of media houses from the financial statements of the media houses for a five year period beginning 2003 to 2007. The analysis was done in terms of descriptive statistics such as mean scores and standard deviations. Other statistics such as the inferential statistics were also used to interpret the data. The results were presented using tables, graphs and charts for ease of understanding. For the secondary data, a regression was run with performance as the dependent variable and strategies as the independent variables. From the findings, media houses have embarked on strategies such as classification of clients into various segments, having the most talented workforce in the industry and having the best credit policies in the market for their suppliers, introducing a wide range of products so as to serve customers conveniently and having a variety of entertainment to choose from. However they ought to invest more in promotion strategies since they impact more on their Business performance Composite Index (BPCI).