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Extent of Adoption of Generic Strategies for Competitive Advantage in Poultry Farming In Kenya

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dc.contributor.author Asena, Salome Esilehwa
dc.date.accessioned 2019-01-18T07:05:19Z
dc.date.available 2019-01-18T07:05:19Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4173
dc.description A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract Farming is crucial to fighting food insecurity, not only because it stimulates increased production but also due to its potential to create wealth for smallholder farmers more so in rural communities. This study focused on the adoption of Michael Porters’ generic strategies in poultry farming in Kenya and was guided by three specific objectives; to determine whether cost leadership strategy; differentiation strategy; and focus strategy have any influence on the competitive advantage of poultry farming agribusinesses in Kenya. The study adopted a descriptive research design in order to describe the what, who, where and how of the relationship between generic strategies and competitive advantage. The study targeted a total population of 100 poultry farmers. Simple random sampling techniques were applied resulting into 100 small scale poultry farmers. The tool used to collect the data was a structured questionnaire. The statistical package for social sciences (SPSS version 25) data analysis software was used to analyze data based on descriptive and inferential statistics. Only 72 were filled and returned the questionnaire giving a response rate of 72%. The findings showed that there was a positive correlation between competitive advantage and cost leadership strategy (r = .553, p< .000); firms capabilities (r = .661, p< .000); linkage and collection (r= .579, p< .000). These results showed that when small scale poultry farmers adopt the cost leadership strategy, they increase their chances of having a competitive advantage. The study correlated competitive advantage and differentiation strategy variables and the findings revealed that there was a positive correlation between competitive advantage and differentiation strategy (r = .557, p< .000); differential product (r = .756, p< .000); differential market (r= .698, p< .000). These results showed that when small scale poultry farmers adopt the differentiation strategy, they increase their chances of having a competitive advantage. A Pearson correlation analysis was done to establish the relationship between competitive advantage and focus strategy. The results revealed that a positive correlation existed between competitive advantage and focus strategy (r = .676, p< .000). These results showed that when small scale poultry farmers adopt the focus strategy, they increase their chances of having a competitive advantage. A regression analysis of the dependent variable (competitive advantage) against cost leadership, differentiation and focus strategy variables showed that R2 value was 0.752 hence 75.2% of the variation in competitive advantage was explained by the variations in cost leadership, differential strategy, and focus strategy. The study concluded that high demand for agricultural products and services requires the sector to be competitive in order to meet the customer needs. Secondly, a customer may be more than willing to purchase a product because of its unique features in agribusiness although differentiation is suitable in a market where customers are not really price sensitive and may be costly for a small scale poultry farmer. Lastly, focus strategy is a suitable strategy for small enterprises and segments in the market, guarantees competitive advantage. The process however requires resources and is dependent on the level of competitiveness in the markets. The study recommended that in order to remain competitive, the agricultural sector needs to respond to environmental influences. This will help the poultry farmer increase and retain the market share as well as guarantee customers’ great value for the product they purchase. Secondly, small scale farmers can use the differentiation product strategy to attract customers. Poultry’s consumption level is dependent on availability of competing alternatives as such use of technology such as refrigeration need to be encouraged. Lastly, focus strategy by small scale poultry farmers depends on the availability of resources therefore before focusing in a particular market there is a need to do thorough research on the costs involved. Further studies should be done by segmenting the respondents into regions so as to be able to make a comparison and understand how cost leadership, differentiation, and focus strategies influence the competitive advantage of small scale poultry farmers across the country. Similar study also needs to be undertaken in other type of farming such as fish and livestock farming so as to be able to generalize the findings en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Adoption of Generic Strategies en_US
dc.subject Competitive Advantage en_US
dc.subject Poultry Farming en_US
dc.subject Kenya en_US
dc.title Extent of Adoption of Generic Strategies for Competitive Advantage in Poultry Farming In Kenya en_US
dc.type Thesis en_US


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