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Effects of Strategic Response on Competitive Advantage of Fast Food Restaurants in Nairobi

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dc.contributor.author Muchoki, Carol Anne Nyambura
dc.date.accessioned 2017-01-13T13:03:28Z
dc.date.available 2017-01-13T13:03:28Z
dc.date.issued 2016
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3088
dc.description A Research Project Proposal Submitted to the School of Business In Partial Fulfilment Of The Award Of Master’s In Business Administration (MBA) Degree en_US
dc.description.abstract The purpose of this study was to investigate effects of strategic response on competitive advantage of fast food restaurants in Nairobi. The study was guided by the following research objectives; to establish how cost advantages affect competitive advantage in fast food restaurants in Nairobi, to establish how differentiating products affect competitive advantage in fast food restaurants in Nairobi, and to establish how diversification affects competitive advantage in fast food restaurants in Nairobi. This research utilized a descriptive research design and qualitative and quantitative data was used to analyze descriptive statistics. The total population of this study comprised of all employees in the 80 fast food restaurants in Nairobi. A total census was done and out of the distributed 80 questionnaires, only 75 were filled and returned. Data was collected using well-structured questionnaire, using SPSS a regression analysis was carried out between the dependent variable (competitive advantage) and all other variables (cost advantages, differentiating and diversification). An ANOVA analysis was used to establish the differences in means between the various variables. The results were presented in tables. On analysis of how cost advantages affect competitive advantage it was revealed that majority of the organizations offer low cost products of acceptable quality and the business has managed to reduce overhead costs over time. Low prices affect organizations profit margins. From the analysis, all the variables had a significant positive impact on organizational competitive advantage. To analyze how differentiating products affect competitive advantage, it was established that majority of the respondents agreed that offering unique products creates value for consumer, and firms are concerned about other companies imitating their products, however offering unique product did not impact the income. On analysis on how diversification affects competitive advantage in fast food restaurants in Nairobi, Majority of firm have the necessary skills to introduce new products however it was not clear whether new products influence earning and customer attention towards the products. There was also indifference that introduction of new products influence market share in the industry and whether the business creates brand loyalty by introducing new products. In line with cost advantage the study concluded that most firms offer low cost products of acceptable quality and the various fast food restaurants have managed to reduce overhead costs over time and this affects organizations profit margins. While it is believed that lower prices attract low-income consumers when it comes to issue of fast food the notion changes. This may be because of the mentality that low priced foodstuff are of “poor” quality. To analyze the effects of differentiating products it was concluded that fast food restaurants offer unique products creating value for consumer, additionally, customers are concerned about the high quality of the unique products offered in the firm. However, there are limited opportunities for fast foods to differentiate their products. To analyze the effects of diversification, it was concluded that fast food restaurants have all the necessary skills to introduce new products although this has minimal influence in the earning in the industry. it is also revealed that new products in the industry does not necessarily mean an increase customer attention towards the products. The study also established that introduction of new products does not in any way determine the market share in the industry. The study recommended that due to changes that are taking place in customers taste and preference, fast food restaurant should continue to differentiate their products, create brand loyalty for new products through this they will be able enhance customer’s perception about their products, increase their profit and create value for customers. Customers will also be able to recommend other customers to their restaurant and fast food restaurants need to not only focus on being a lowest cost management compared to competitors but also have in mind the fact that their customers not only value low prices but are concerned in the quality of products offered. For further studies, it is recommended that a similar study should be done to reveal other effects of strategic response on competitive advantage of fast food restaurants in Nairobi en_US
dc.publisher United States International University - Africa en_US
dc.subject Competitive Advantage en_US
dc.subject Fast Food Restaurants in Nairobi en_US
dc.title Effects of Strategic Response on Competitive Advantage of Fast Food Restaurants in Nairobi en_US
dc.type Thesis en_US


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