Competitive Strategies and Performance of Star-Rated Hotels in Nairobi City County, Kenya
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Date
2023
Authors
Ouma, Brian Roy
Journal Title
Journal ISSN
Volume Title
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