Market Expansion Strategies and Organizational Performance of Supermarkets in Nairobi City County, Kenya
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Date
2023
Authors
Munee, Daisy
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta university
Abstract
Performance of an organization is dependent on the fit between the organization itself
and the environment, thus it should adapt to the changing environment for survival and
success. A portion of the difficulties experienced in the Supermarkets incorporate income
bungle, unfortunate revealing designs, unfortunate installment arranging of the providers
and thievery by subordinates and clients. The general objective of this study was to
examine the effect of market expansion strategies on organizational performance of
Supermarkets in Nairobi City County, Kenya. The specific objectives were to find out the
effect of market development expansion strategies, diversification expansion strategies,
product development expansion strategies and marketing penetration expansion strategies
on supermarkets' organizational performance in Nairobi. The agency theory, balanced
scored card model and market orientation were the theories which were used in the study.
A descriptive study design was used. The study targeted 144 employees from selected
Supermarkets and the sample size was 77 employees which was selected by use of simple
random sampling. A questionnaire was used for data collection which was pilot tested
before data collection was undertaken. The findings on reliability indicate that all the
variables are reliable after Cronbach analysis. Quantitative data was analyzed through
statistical analysis. The data was presented in tables and charts. Qualitative data was
analyzed by grouping the data into similar groups and mean scores, standard deviations,
percentages, and frequency distribution were employed to summarize the responses. The
results from the study indicated there is direct relationship between market expansion
strategies and organization. This was supported by majority of the respondents from the
study findings. The study recommended that in order to reach out to new customers, there
is need for Supermarkets to have customer focused pricing. Supermarkets need to
increase their marketing and advertising budgets. Enhancing the product's functionality to
better address client issues or obstacles will go a long way in attracting more customers.
Product re-engineering is necessary to create competitive, innovative, and excellent
products. The branch managers need to have sufficient skills and knowledge on how
implement product development strategies. Supermarkets in Nairobi City County need to
adopt the different forms of diversification as they seek to capture more market share in
the retail industry
Description
A Research Project Submitted to the School of Business,
Economics & Tourism in Partial Fulfillment for the Award of
Degree in Master of Business Administration (Strategic
Management) of Kenyatta University
Keywords
Market Expansion, Supermarkets, Nairobi City County, Kenya