Blue Ocean Strategies and Performance of Three and Four-Star Rated Hotels in Naivasha Sub-County, Kenya
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Date
2024-06
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Kenyatta University
Abstract
The primary objective was to assess how the adoption of blue ocean strategy influences the organizational performance of star-rated hotels in Naivasha, Kenya. Specifically, the study aimed to examine the effects of differentiation strategy, low-cost strategy, value innovation strategy, and strategy canvas on the organizational performance of these hotels. The findings hold significance for the hotel industry, policymakers, and strategic stakeholders, including the Ministry of Tourism, offering valuable insights for future scholars and researchers. The Resource-Based View theory and the Beach theory served as the theoretical framework for this study, conducted through a descriptive survey design. Thirty-eight three and four-star rated hotels in Naivasha, Kenya, constitute the target population, justifying the use of a census due to the relatively small population size. The geographical focus was on Naivasha. A pilot study was executed among 3 to 4-star rated hotels in Kisumu sub-county, chosen for their similar operational environment. The questionnaire's validity was determined by a supervisor and two strategic management experts, while reliability was established through Cronbach Alpha Coefficients, interpreted at a 0.7 level, based on the pilot study outcomes. The study involved 76 respondents, with each hotel selecting two managers knowledgeable about blue ocean strategies and their organization's performance. Primary data was gathered through the use of a questionnaire. The study used descriptive and regression analysis to analyze the data. The results, showcased in tables and figures, indicated that differentiation strategy (p<0.05), low-cost strategy (p<0.05), value innovation strategy (p<0.05), and strategy canvas (p<0.05) have a noteworthy influence on the firms’ performance of the rated hotels in Naivasha, Kenya. As a result, the study concluded that blue ocean strategies are substantial predictors of organizational performance. The study recommended that marketing managers working with three and four star rated hotels in Naivasha sub sub-county should invest significant amount of budgets in carrying out product, service and price differentiation. Senior managers working with three and four star rated hotels in Naivasha sub sub-county should ensure there is prudent and optimal utilization of resources to harness superior performance. Operational managers working with three and four star rated hotels in Naivasha sub sub-county should actively redesign the systems and processes that are conducted on a daily basis for increased flexibility and agility hence better organizational performance of their hotels. The marketing managers working with three and four star rated hotels in Naivasha sub sub-county to proactively identify the untapped marketing opportunities that can allow them to generate more revenues hence better organizational performance.
Description
A Research Project Submitted in Partial Fulfillment of the Requirement for the Award of the Degree of Masters of Business Administration (Strategic Management) in the School of Business, Economics and Tourism, Kenyatta University. June 2024
supervisor
Mary Ragui