Competitive Strategies and Performance of Star-Rated Hotels in Nairobi City County, Kenya

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Date
2023
Authors
Ouma, Brian Roy
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Publisher
Kenyatta University
Abstract
The hospitality industry operates in a very dynamic environment,this makes it vunerable to the changes and these in many ways have consequences on its day to day operation.Subsequently, firms within the hopstitality industry should be proactive to these changes, and to remain ahead of the competition should formulate and adopt competitive startegies to gain competitive advantage in the environment they operate in and thus improve on their performance. This study strived to examine the effects of competitive strategies on the performance of star-rated hotels in Nairobi County, Kenya. The specific objectives of the study were, to establish the effect of market development strategy, to examine the effects of innovative strategy, and to determine the effects of differentiation strategy on the performance of the star-rated hotels. The study was based on the resource-based view theory and supported by the balanced scorecard model. The research study employed a descriptive research design as it allowed analysis of different variables at the same time. The target population was 83 registered star-rated hotels in Nairobi City County Kenya where the respondents comprised of chief operating officers or any other top rated managers of the hotels.The study was a census study and therefore the target population was the sample size.The study employed on primary research data with a structured research questionnaire being administered in the study. The study undertook a pilot test on 10% of the participants.The pilot's participants were excluded in the final analysis. The collected research data was analyzed with the use of Statistcal Package for Social Sciences version 25. The research utilized descriptive, correlation, and regression analysis. The analyzed research data was displayed via Bar Graphs, Charts, and Tables. The study was able to obtain 81% of the responses from the management team within the hotels. . The study concluded there is a favorable and statistically significant impact of competitive strategies on the performance of star-rated hotels in Nairobi County. There is need to ensure that hotel operations increase in efficiency in order to meet the set efficiency benchmarks set for provision of services and products. The findings led to the conclusion that innovative, differentiation and market development strategies have a favorable and substantial impact on the performance of the hotels. The study recommends that the hotels develop new and fresh ways of leveraging new market opportunities. This can be utilized by employing market segmentation and niche market approaches. The hotel needs to set more goals for itself, such being able to focus on potential customers much more efficiently, which will improve customer satisfaction, customer retention, and market share. The study further recommends that the hotels invest more in financial innovation by adopting better accounts management that ensures managing and storage of the customer data effectively.
Description
A Research Project Submitted To The School Of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Degree of Masters of Business Administration (Strategic Management Option) of Kenyatta University, May 2023.
Keywords
Competitive Strategies, Performance of Star-Rated Hotels, Nairobi City County, Kenya
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