Competitive Strategies and Performance of Family Owned Supermarkets in Kericho County, Kenya
Performance comprises the actual result or output of an organization measured against its intended objective or goal. Performance in terms of profit, return on investment and return on assets has been a problem to supermarkets. The study’s main objective was to determine the effect of competitive strategies on the firm performance of family owned supermarkets in Kericho County Kenya. The specific objectives was to determine the effect of cost leadership strategy, differentiation strategy, focus strategy and innovation strategy on performance of family owned supermarkets in Kericho county, Kenya. The study was anchored on the following theories: resource based-view theory contingency theory and innovation profit theory. Descriptive design research was used. There were 21 registered family owned supermarkets in Kericho. The target population was 129.A sample of 97 respondents was selected using random sampling technique. It consisted of the top-level, middle level and lower level management. Structured questionnaire was used. Validity of the research instrument Cronbach’s alpha (α) was used to compute coefficient of reliability of the research instrument. Data was analysed using descriptive and inferential sstatistics, presented using graphs, tables and results discussed in a narrative form. Content analysis was used to analyse qualitative data. Statistical package for social sciences (SPSS) was used to aid in data analysis. The study findings indicate that competitive strategies had a positive effect on performance of supermarkets. Cost leadership was preferred and differentiation strategy was used to improve performance. In conclusion, focus strategy was applied by supermarkets to a small extent. Innovation strategy was embraced by the supermarkets to a significant effect on performance. It was recommended that the family owned supermarkets should make sure that prices are managed as they pursue cost leadership strategy to remain profitable market to cater for various groups to maximize profit. In addition, the supermarkets should differentiate its goods with an aim of making them more competitive and easily identifiable in the market. The supermarkets need to embrace modern technology to promote efficiency and effectiveness in service delivery. The study’s findings would be of great benefit to the management of the family owned supermarkets as they would be using the findings as a management reference point for strategic planning that would bring about organizations competitive advantage.