Effect of competitive strategies on performance of public universities in Kenya

Abstract

Companies need to learn to manage tomorrow's opportunities as competently as they manage today's businesses. Competitive strategies employed by firms in their operations vary widely. The current operational set-up in Kenya‟s universities is a turbulent one and highly competitive market condition. To ensure survival and sustainability in the market place the public universities require adopting a competitive strategy. The purpose of this study was to establish the effect of competitive strategies on the performance of public universities in Kenya. This research problem was studied using a descriptive survey design. The target population was 162 respondents from which 54 were chosen as the sample size. Stratified disproportionate sampling technique was used to select the sample. A structured questionnaire was used to collect primary data. Responses in the questionnaires were tabulated, coded and processed by use of a computer Statistical Package for Social Science (SPSS) version 17.0 programme to analyze the data using descriptive statistics. In addition, multiple regression analysis was conducted to establish the relationship between the competitive strategies and market sustainability. The findings were that economies of scale to a very great extent affect performance of universities. It was further established that capacity utilization of resources, reducing operations time and costs, efficiency and cost control, mass production and mass distribution as aspects of cost leadership affected performance in the university to great extent, differentiation based on product/service, differentiation based on promotion/ advertising campaign and differentiation based on personnel affected performance of the university and market focus affected performance of the university. The study concluded that cost leadership affects performance of universities in Kenya through achieving economies of scale, capacity utilization of resources, reducing operations time and costs, efficiency and cost control, mass production, forming linkages with service providers, suppliers and other supplementary institutions and mass distribution and that differentiation affect performance of the university through product/service, promotion/ advertising campaign, personnel differentiation. The study recommended that universities should embrace and invest in cost leadership strategies most especially forming linkages with service providers, suppliers and other supplementary institutions since it will enable them achieve competitive advantage as compared to other universities that are not investing in these strategies and that universities should first understand and know their motive and capability before adopting a certain competitive strategy for example market focus