scholarly journals AN ANALYSIS OF THE EFFECT OF COMPETITIVE STRATEGIES ON PERFORMANCE: A SURVEY OF MFIS IN KENYA

2016 ◽  
Vol 1 (2) ◽  
pp. 21
Author(s):  
Priscilla Wanjiru Kung’u ◽  
Mr. Vincent Machuki
Keyword(s):  
Competitive Strategy ◽  
Ease Of Use ◽  
Microfinance Institutions ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Data Collection Instrument ◽  
Value Disciplines ◽  
Focus Strategy ◽  
Descriptive Survey

Purpose: The purpose of the study was to investigate the competitive strategies being adopted by MFIs and the effect of such strategies on firm performanceMethodology: The study adopted a descriptive survey research design. The targeted population of the study was derived from the 41 members of Association of Microfinance Institutions. A census was carried out.  The questionnaire was the main data collection instrument due to its convenience and ease of use. The data will be analyzed through both descriptive statistics and regression statistics.Results: The findings of the study indicated that MFIs used cost leadership competitive strategy, differentiation strategy, focus strategy and value disciplines. Findings indicated that there was a relationship between competitive strategies and the performance of MFIs.Unique contribution to theory, practice and policy: It was recommended in the study that the MFIs should continue the use of the competitive strategies as they were impacting positively to their performance. The suggested area of research was to determine most preferred dominant competitive strategy being used by MFIs and also to ascertain the truth of the “being split in the middle phenomena” advocated by porter (1998).

scholarly journals Modern approaches to the formation of enterprise competitive strategy

2020 ◽  
pp. 109-120
Author(s):  
Inna Kuznetsova ◽  
Valentyna Gorbatiuk
Keyword(s):  
Competitive Advantage ◽  
Continuous Improvement ◽  
Competitive Strategy ◽  
Sustainable Competitive Advantage ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Advantages And Disadvantages ◽  
Modern Business ◽  
Output Characteristics ◽  
Value Disciplines

The article considers the approaches to the formation of a competitive strategy. The purpose of the article is to systematize existing approaches to the formation of a competitive strategy and highlight modern competitive strategies. The essence of the concepts «strategy» and «competitive strategy» is considered. Based on a critical analysis of the essence of «competitive strategy» concept, three approaches to its interpretation by various researchers are identified: it is aimed at creating a stable position in the market, provides for the creation of a sustainable competitive advantage, and it is aimed at achieving superiority over competitors. Based on the results of interpretations systematization and analysis of the essence of «strategy» concept, the author’s definition of competitive strategy as a direction of forming a competitive advantage for creating a unique value of the product is proposed. The process of choosing a competitive strategy by M. Porter has been analyzed and it has been established that after its development, further continuous improvement is necessary. The process of choosing a competitive strategy by M. Porter is analyzed and it has been established that after its development, further continuous improvement is necessary. The main approaches to the formation of a competitive strategy, which considering modern business trends are investigated: industry positioning, competitive cooperation, value disciplines, evolutionary theory and key competencies. The essence of the considered concepts, their advantages and disadvantages are clarified and two types of competition, typical for these concepts are identified, namely: tough competition; competition and cooperation. A number of competitive strategies, which take into account the specifics of modern enterprises, are investigated and the essence, necessary resources, output characteristics and type of competition for each of them are highlighted. It was substantiated that each of there searched strategies implements one of the basic competitive strategies: cost leadership or focusing. The cost leadership strategy using at domestic enterprises, which is the most acceptable for the modern realities of the functioning and development of business, is proposed,

scholarly journals Competitive Strategy Analysis from Entrepreneurship Stories

2019 ◽  
Author(s):  
Şeyma Gün Eroğlu ◽  
Ayşe İrmiş
Keyword(s):  
Production Process ◽  
Local Market ◽  
Competitive Strategies ◽  
Strategy Analysis ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Cost ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Organizations apply two basic competitive strategies in general. These are the cost leadership strategy and the differentiation strategy. The application of any of the mentioned strategies by focusing on a smaller field in the market is called a focus strategy. Companies gain value in the eyes of customer with the strategy they choose. The aim of this study is to analyze the competitive strategies applied by the enterprises and the results of these strategies. A semi-configured interview on the entrepreneurs of two firms which open to a wider market from local market in Denizli with their own brands, was conducted. The first enterprise, which has been maintaining its existence for 80 years and has many branches in the different provinces, is a firm producing sugar and sugar products (Firm A). The second, which has been maintaining its existence for 84 years and has branches in close neighbor cities and provinces, is a firm producing soft drinks (Firm B). The common feature of both firms is that they keep their local characteristics and take their competitive power from the local people. In the research, the competitive strategies of entrepreneurs have been defined and analyzed by benefiting from the entrepreneurship stories that have been brought up to the present day. It was concluded that firm A applied differentiation strategy in the product, production process, and market, while firm B differentiated in the production process without any differentiation in the product and used the focus strategy in the market.

scholarly journals The Pricing And Competitive Strategies Of U.S. Airlines

2011 ◽  
Vol 5 (2) ◽  
pp. 23 ◽  
Author(s):  
Evan J. Douglas
Keyword(s):  
Competitive Strategy ◽  
Price Competition ◽  
Pricing Strategies ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Long Run ◽  
Airline Markets ◽  
Short Run ◽  
Good For

This paper argues that price competition is inevitable in the airline markets because passenger air service is a search good. For the same reason, the optimal long run competitive strategy for the airlines is cost leadership, although qualitative advantages should be exploited by a differentiation strategy in the short run. The airlines have devised a variety of creative pricing strategies which are analyzed for their economic content.

scholarly journals STRATEGI KOMPETITIF MELALUI PROGRAM PAHLAWAN EKONOMI DALAM PEMBERDAYAAN UMKM PASCA PANDEMI COVID-19 (Studi padaPemerintah Kota Surabaya)

Publika ◽  
2021 ◽  
pp. 137-148
Author(s):  
Ayu Aldania ◽  
Fitrotun Niswah
Keyword(s):  
Competitive Strategy ◽  
Global Economy ◽  
Economic Activities ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Analysis Technique ◽  
Collection Data ◽  
The Cost

Pandemi COVID-19 berdampak pada ekonomi global dan menyebabkan resesi. Ketidakstabilan ekonomi yang disebabkan resesi mempengaruhi keberadaan UMKM. Pahlawan Ekonomi yang memberikan pelatihan dan pendampingan pada pemberdayaan UMKM dapat menjadi salah satu langkah untuk mendorong aktivitas ekonomi negara. Tujuan penelitian ini adalah untuk menggambarkan strategi kompetitif melalui Pahlawan Ekonomi dalam pemberdayaan UMKM pasca pandemic COVID-19. Metode penelitian yang digunakan adalah kualitatif dengan pendekatan deskriptif. Berfokus pada Strategi Kompetitif Generik yang dibagi menjadi tiga strategi yaitu kepemimpinan biaya, diferensiasi, dan fokus. Teknik analisis data menggunakan interaktif kualitatif, yaitu pengambilan data, reduksi data, penyajian data, serta penarikan kesimpulan. Pengumpulan data pada penelitian ini menggunakan wawancara, pengamatan, dan dokumentasi. Hasil penelitian menunjukkan bahwa strategi kepemimpinan biaya dan strategi diferensiasi efektif untuk diterapkan di Pahlawan Ekonomi dimasa pandemic COVID-19. Karena tidak hanya mempertahankan UMKM dari resesi, tetapi juga meningkatkan penjualan. Salah satu saran yang dapat diajukan adalah memberikan pelatihan yang berjenjang sesuai kondisi masing-masing UMKM. Kata Kunci: Strategi Kompetitif Generik, Pahlawan Ekonomi, COVID-19.   The COVID-19 pandemic is impacting the global economy and causing a recession. Economic instability caused by recession affects the existence of MSMEs. Pahlawan Ekonomi provides training and assistance on empowering MSMEs to be one of the steps to encourage the country's economic activities. The purpose of this study is to describe a competitive strategy through Economic Heroes in empowering MSMEs after the COVID-19 pandemic. The research method used is qualitative with a descriptive approach. Focusing on Generic Competitive Strategies which are divided into three strategies namely cost leadership, differentiation, and focus. The data analysis technique used interactive qualitative, namely data collection, data reduction, data presentation, and drawing conclusions. Collecting data in this study using interviews, observations, and documentation. The results showed that the cost leadership strategy and differentiation strategy were effective to be implemented in Pahlawan Ekonomi during the COVID-19 pandemic. Because it not only defends MSMEs from recession, but also increase sales. One suggestion that can be put forward is to provide tiered training according to the conditions of each UMKM. Keywords:Generic Competitive Strategy, Economic Hero Program, COVID-19

scholarly journals COMPETITIVE STRATEGIES ADOPTED BY PLAYERS IN THE BEER INDUSTRY IN KENYA

2016 ◽  
Vol 1 (1) ◽  
pp. 34
Author(s):  
Catherine W. Ndung’u ◽  
Dr. Vincent Machuki
Keyword(s):  
Competitive Strategy ◽  
Analysis Data ◽  
Competitive Strategies ◽  
Cross Sectional ◽  
Beer Industry ◽  
Leadership Strategy ◽  
Value Disciplines ◽  
Competitive Rivalry ◽  
Descriptive Survey ◽  
Strategy Fit

Purpose: The focus of this study was on assessment of competitive strategies adopted by players in the beer industry in KenyaMethodology: The study adopted a cross sectional descriptive survey research design. There are 11 players in beer industry operating in Kenya. The research therefore took the form of a census study covering all the players in the beer industry in Kenya since the population of 11 firms was considered small enough. Eleven questionnaires were given out though only 10 were considered fit for data analysis. Data was analyzed using descriptive statistics.Results: Findings indicated that players in beer industry in Kenya were faced by several forces that shape competition. These included competitive rivalry, threat of new entrants, bargaining power of suppliers and customers, globalization, regulation and information technology. Players in beer industry in Kenya used cost leadership strategy as a competitive strategy since they attempt to reduce their operational costs in order to deliver the product at the lowest prices. It was also possible to conclude that players in beer industry in Kenya use differentiation as a competitive strategy since they have invested in product research. Players in beer industry in Kenya also used focus as a competitive strategy since they have products for different types of consumers. It was also possible to infer from this study that players in beer industry in Kenya used value disciplines as a competitive strategy.Unique contribution to theory, practice and policy: The study recommended that players in beer industry should carry out constant environment scanning so as to be able to identify the various forces that affect their operations. In addition, they needed to adopt strategic planning as a tool for planning against any unforeseen events that may destabilize the operations of the company.  Finally, it was recommended that these players needed to continue using the various competitive strategies. However, they also needed to factor in the concept of strategy fit by considering the internal capabilities and resources of the firm.

AN ANALYSIS OF COMPETITIVE STRATEGIES EMPLOYED IN MICROFINANCE INSTITUTIONS: A CASE OF KENYA WOMEN FINANCE TRUST

2017 ◽  
Vol 2 (3) ◽  
pp. 78
Author(s):  
Pauline Mueni Kisuna ◽  
Julius Gogo
Keyword(s):  
Competitive Strategy ◽  
Target Population ◽  
Microfinance Institutions ◽  
Strategy Formulation ◽  
Competitive Strategies ◽  
Descriptive Case Study ◽  
Differentiation Strategy ◽  
Competitive Edge ◽  
Skilled Personnel

Purpose: The study sought to examine competitive strategies employed in microfinance institutions using a case study of Kenya Women Finance TrustMethodology: The study adopted descriptive case study design. The sample size was thirty respondents from a target population of one hundred and one respondents. The research used both stratified random sampling and purposive sampling methods. The research study used questionnaires and interview schedules to collect data. Data was analyzed using Statistical Package for the Social Sciences (SPSS) version 20 and Microsoft Excel 2007.Results: The research findings indicated that KWFT used several competitive strategies so as to be at a competitive edge in the market, the majority being geographical expansion strategy, market and product development, improved marketing methods and differentiation strategy. The use of these competitive strategies in KWFT had several contributions such as the organization’s ability to be at competitive edge by being able to retain customers and also by achieving high profits for an organization. The various challenges that affected the use of competitive strategies included financial challenges and lack of skilled personnel to formulate and implement the competitive strategies.Unique contribution to theory, practice and policy: It recommended that KWFT should use more of differentiation strategy as this was mentioned as being the least used strategy. This is important because products are differentiated in ways that will appeal on a variety of customers and thus creating customer loyalty which will eventually lead to competitive advantage for KWFT. It was also recommended that KWFT should be able to retain those employees that have been involved in crafting competitive strategies in the organization. KWFT should also employ high skilled personnel especially in the field of competitive strategy, reserve finances for competitive strategy formulation and train employees on competitive strategies so as to counter the challenges that were identified in the study.

scholarly journals Competitive Strategies and Performance of Commercial Banks in Mombasa County, Kenya

2020 ◽  
Vol 2 (1) ◽  
pp. 65-74
Author(s):  
Joseph Mariga Nyachwaya ◽  
James Maina Rugami
Keyword(s):  
Commercial Banks ◽  
Target Population ◽  
Superior Performance ◽  
Successful Implementation ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Commercial banks in Kenya and especially Mombasa County are facing firm rivalry demanding the use of competitive strategies so as to improve their performance. Most of the commercial banks are deliberating on ways to enhance their performance, with competitive strategies being one of them to arrive a market and afterwards make sense of and ensure its aggressive position. Therefore, this study aimed at establishing the effect of competitive strategies on the performance of commercial banks in Mombasa County. The specific objectives were to determine the effect of cost leadership strategy, differentiation strategy and focus strategy on the performance of commercial banks in Mombasa County. The study was anchored on the theory of resource-based view, strategic balancing and game theory. A descriptive research design was employed in this study. The target population of this study was 280 commercial banks staff in Mombasa County. The sample size was eighty-four after adopting a stratified random sampling technique to select 30% of the target population. The study made use of primary data collection using questionnaires. The data was analyzed using the Statistical Package for Social Sciences (SPSS) Version 24.0 and presented using tables. The study established that despite the challenges in implementation, competitive strategies are very important for banks to remain competitive in the market. The study further concluded that understanding the market structure is a key determinant for the successful implementation of competitive strategies. Banks following a cost leadership strategy realize statistically significant superior performance compared to those that pursue broad differentiation and focus strategy which reports above-average returns. The researcher highly recommends that commercial banks consider shifting more of their focus on the cost leadership strategy in order to realize superior performance. To succeed at offering the lowest price while still achieving profitability and a high return on investment, commercial banks are recommended to operate at a lower cost than its rivals, this could be possible through some fairly unique capabilities to achieve and sustain their low-cost position. The study also recommends strategy planners to integrate and embrace the differentiation strategy which will enable them to differentiate in various methods such as new technology, brand image, design, network customer service or the number of features. Further, commercial banks are recommended to centre on the existing markets and products or services; they can create competitive edge by getting the best mix between existing products and existing markets.

scholarly journals Porter’s Generic Strategies and Performance of Selected Automotive Firms in Nairobi City County, Kenya

2020 ◽  
Vol 2 (2) ◽  
pp. 49-63
Author(s):  
Louisa Kabure ◽  
Mary Ragui
Keyword(s):  
Correlation Coefficient ◽  
Automotive Industry ◽  
Organization Performance ◽  
Sales Growth ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
The Government ◽  
Focus Strategy ◽  
Generic Strategies ◽  
Porter's Generic Strategies

Every firm operating in a dynamic and competitive environment must employ competitive strategies in order to enhance performance and remain relevant to the market. The automotive industry in Kenya has experienced shifts within the last couple of years that have disadvantaged automotive firms’ sales and this despite adequate capacity to supply local demand. Consequently, a persistent decline in volume sales has negatively impacted performance of these firms in overall, reducing competition to price wars that are not a viable option in the long run. This study therefore, sought to investigate the effect of Porter’s generic strategies on performance of selected automotive firms in Nairobi City County, Kenya. The specific objectives of the study were; to determine the effect of cost leadership strategy on the performance of selected automotive firms in Nairobi county, Kenya, to investigate the effect of differentiation strategy on the performance of selected automotive firms in Nairobi county, Kenya and to establish the effect of focus strategy on the performance of selected automotive firms in Nairobi county, Kenya. The scope entailed a study of selected new vehicle firms in the automotive industry in Nairobi County, Kenya. The study was anchored on three theories that included the market based view, the resource based view of the firm and Porter’s diamond theory of national advantage. Descriptive research design was adopted. The study used simple random sampling to attain the sample size and data was collected through drop and pick method using semi structured questionnaires. To ensure reliability in the questionnaire, Cronbach’s alpha correlation coefficient was used where a level of above 0.7 confirmed internal consistency. Pilot testing was done on ten respondents and Pearson’s product correlation coefficient was used to check for correlation between the study variables. A multivariate regression model was used to determine the relative importance of each variable to the study. Data collected was presented in graphs, tables and charts and a conclusion of the study drawn. The study revealed that cost leadership was significant in influencing the organizations’ performance. The study also revealed that differentiation affected their organizations’ performance to a great extent. The study also revealed that the focus strategy improved the sales growth in the firms thereby resulting to overall organization performance. The study concluded that cost leadership was significant in influencing the organizations’ performance. The study also concluded that differentiation affected their organizations’ performance to a great extent. The study also concluded that the focus strategy improved the sales growth in the firms thereby resulting to overall organization performance. The study recommended that the government and other policy makers come up with policies and regulations meant to foster innovation in the automotive industry. Policies should also be put in place meant for the creation of an enabling environment for fair and market driven competition to take place. The study recommended that the management of the automotive firms should often review their pricing structures and be geared towards minimizing their operational costs so as to offer cost friendly vehicles to the clients. The study also recommended that the firms’ management ensure they develop quality vehicles and embrace differentiation strategy so as to remain competitive in the market. The study also recommended that the management fully adopt the focus strategy to help in improving the sales growth in the firms thereby resulting to overall organization performance as well as improving on the product innovation which would lead to improved market share.

CONCEPTUAL APPROACH TO THE FORMATION OF A COMPETITIVE STRATEGY OF A FOOD INDUSTRY ENTERPRISE

2021 ◽  
Author(s):  
В.В. ПРОХОРОВА ◽  
А.С. БАСЮК
Keyword(s):  
Competitive Strategy ◽  
Customer Value ◽  
Food Industry ◽  
Analytical Data ◽  
Industrial Complex ◽  
Competitive Advantages ◽  
Competitive Strategies ◽  
Conceptual Approach ◽  
Differentiation Strategy

На основе анализа тенденций развития агропромышленного комплекса России за последние годы и с учетом изменения роста доходов населения и структуры потребления основных продуктов питания предложены модели построения конкурентных стратегий для предприятий пищевой промышленности. Представлена классификация базовых конкурентных стратегий, описаны их особенности и преимущества в различных ситуациях на рынке. Предложен концептуальный подход к формированию конкурентных стратегий предприятия, основанный на анализе его возможного развития и ситуации в отрасли и предполагающий создание долгосрочных конкурентных преимуществ предприятия на основе его позиционирования на рынке. Рассмотрена стратегия дифференциации и ее особенности в сравнении с другими конкурентными стратегиями. Представлены возможности создания дополнительной покупательской ценности продукта. Предложен алгоритм разработки и реализации конкурентной стратегии предприятия, позволяющий систематизировать аналитические данные, минимизировать разрыв между планируемыми и фактическими экономическими показателями предприятия и способствующий своевременной корректировке избранной конкурентной стратегии. Based on the analysis of trends in the development of the Russian agro-industrial complex in recent years and taking into account changes in the growth of household income and the structure of consumption of basic food products, models for building competitive strategies for food industry enterprises are proposed. The classification of basic competitive strategies is presented; their features and advantages in various market situations are described. A conceptual approach to the formation of competitive strategies of the enterprise, based on the analysis of its possible development and the situation in the industry and involving the creation of long-term competitive advantages of the enterprise based on its positioning in the market, is proposed. The differentiation strategy and its features in comparison with other competitive strategies are considered. The possibilities of creating additional customer value of the product are presented. An algorithm for the development and implementation of the competitive strategy of the enterprise, which allows to systematize analytical data, minimize the gap between the planned and actual economic indicators of the enterprise and contributes to the timely adjustment of the chosen competitive strategy, is proposed.

scholarly journals Generic competitive strategies on organizational performance in Nepalese Commercial Banks

Pravaha ◽  
2020 ◽  
Vol 25 (1) ◽  
pp. 87-94
Author(s):  
Jitendra Pd. Upadhyay ◽  
Pitri Raj Adhikari
Keyword(s):  
Organizational Performance ◽  
Commercial Banks ◽  
Core Competency ◽  
Multiple Regression Model ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Impact ◽  
The Relationship

This paper attempts to examine the impact of generic competitive strategy on organizational performance in Nepalese commercial banks. It has employed descriptive and causal comparative research design to estimate the relationship between dependent variable (organizational performance) with independent variables (differentiation strategy, cost leadership strategy, focus strategy, organization’s core competency and bank size). Data has been collected from 384respondents by using structured questionnaire. The multiple regression model has been used to test the relationship. It is found that organizational performance of banks is influenced by cost leadership, differentiation, focus, organization ‘score competency and bank size.

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