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Effect of Generic Strategies on the Performance of Small and Medium Enterprises in Nairobi County

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dc.contributor.author Abwodha, Joseph O.
dc.date.accessioned 2019-07-31T09:20:52Z
dc.date.available 2019-07-31T09:20:52Z
dc.date.issued 2019
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4705
dc.description A Project Report Submitted to the School of Business in Partial Fulfillment of the Requirement for the Award of the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract This study focused the effect of generic strategies on the performance of small and medium enterprises. The study was guided by the following research questions: what is the effect of cost leadership strategy on the performance of family owned businesses? What is the effect of differentiation strategy on the performance of family owned businesses? What is the effect of focus strategy on the performance of family owned businesses? This study used descriptive research design and a target population of 300 Small and Medium Enterprises (SMEs) was used and total sample size of 75 was picked. Probability and non- probability sampling techniques were used to create a sampling frame. Simple random sampling method was used in this study. The data was collected using self-administered questionnaires; the collected data was analysed using Statistical Package for Social Sciences (SPSS) software. The results of the study were analysed using descriptive statistics and the results were presented using tables and figures. The study showed that the family businesses always charged lower price than their competitors and they heavily invested in sales promotions. These businesses frequently sourced supplies from those suppliers who provided discounts, while vigorously pursuing cost reductions through outsourcing functions to control costs. The study indicated that family businesses identified underperforming areas in order to cut costs. The study showed that family businesses in Nairobi focused on product design techniques that economized on cost of materials while offering a broad range of products. These businesses made conscious effort to differentiate their products from those of competitors by offering a narrower range of products than competitors. Family businesses in Nairobi continuously developed new products that were developed through strong brand identification. The study showed that family businesses in Nairobi County served specific geographical markets as well as diverse market segments. These businesses emphasized on marketing specialty products that dealt with broad products serving wider markets. Family businesses sought to provide products/services in different geographical locations, and they produced products/services for higher price segments that were focused on meeting their customer needs more than their competitors. The study concludes that family businesses continuously exercised tight cost controls and paid attention to detail like focusing on product design techniques that economized on cost of materials, while they strived to build strong reputation within their respective industries where they were usually the first to introduce new products before their competitors. These businesses quickly responded to changes in demand of their customers, thus driving customer satisfaction. The study recommends the family business owners/managers to ensure that they identify and monitor the various strategic drivers of their various businesses and ensure that they constantly monitor these strategic drivers and how they influence their value chains. This will facilitate their ability to ensure that their firms gain economies of scale in terms of generic strategies. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Generic Strategies en_US
dc.subject Small and Medium Enterprises en_US
dc.subject Nairobi County en_US
dc.title Effect of Generic Strategies on the Performance of Small and Medium Enterprises in Nairobi County en_US
dc.type Thesis en_US


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