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Gerald Kilonzo Wambua

M.Sc Scholar (Procurement and Logistics),

Jomo Kenyatta University of Agriculture and Technology, Kenya


Dr. David Mburu Kiarie

Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya


CITATION: Wambua, G., K. & Kiarie, D., M. (2016). Influence of Generic Competitive Strategies On Performance in Retail Outlets in Nairobi, Kenya. International Journal of Human Resources and Procurement. Vol. 5 (10) pp 267-293.



The purpose of this study was to ascertain the influence of generic competitive strategies on the performance of all the major retail outlets in the Nairobi, Kenya. Specifically, the study aimed at determining the role of Porter’s Generic strategies which consist of the overall cost leadership, broad differentiation, focused differentiation and focused cost leadership strategies on the performance of major retail outlets in Nairobi. The study adopted a descriptive survey research design with an aim of obtaining complete and accurate information giving precise precision in achieving the objective of the study. The population of interest included all the major retail outlets within the Nairobi Metropolitan. The major retail outlets were those with a workforce of over two thousand employees for each entire chain of Retail outlet, and with more than 15 branches within the Nairobi Metropolitan area. The sample size consisted the entire population of 78 retail outlets within the Nairobi Metropolitan. The research study entailed using both primary and secondary data. The primary data was obtained through the use of open ended questionnaires and personal information while secondary data was obtained from visiting documentaries such as the organizations’ websites. Quantitative data was analyzed using the statistical package for social sciences (SPSS) Version 21 while qualitative data was analyzed using content analysis. The data was analyzed and interpreted using the descriptive statistics on frequency distribution and percentages. From the study findings it was clear that Porter’s generic strategies played different roles in impacting on the performance of the major retail outlets operating in the Nairobi metropolitan. The descriptive and inferential statistics (correlation and regression analysis) were used to show the relationship of the independent variables and dependent variable at 5% level of significance. It is notable that there exists a strong positive relationship between the independent variables and dependent variable as shown by R value (0.777). The coefficient of determination (R2) explains the extent to which changes in the dependent variable can be explained by the change in the independent variables or the percentage of variation in the dependent variable and the four independent variables that were studied explained 60.40% of the performance in retail outlets as represented by the R2.The analysis showed that broad differentiation strategy had the strongest positive (Pearson correlation coefficient =.876, p-value= .000< .05 ) influence on performance in retail outlets. In addition broad differentiation strategy, overall cost leadership strategy, focused differentiation strategy and focused cost leadership are positively correlated to performance in retail outlets with Pearson correlation coefficient of .865, .754 and .721 with p-values of .001 < .05, . 002< .05, .008 < .05 respectively.. In the light of the findings and conclusions, the following recommendations are hereby proposed: The study has however indicated that there is a need for a sustained strategic action to be undertaken by the major retail outlets within Nairobi Metropolitan in order to enable them to attain their overall objectives of improving or sustaining their performance and to match their generic strategies with the environment in which they operate. The major retail outlets should also integrate more with other entrepreneurial sectors to enhance their business understandings and enlighten the management in terms of knowledge and operations dynamic. There is need to enhance broad differentiation and overall cost leadership strategies play a major role on the performance of the major retail outlets within the Nairobi metropolitan. These two strategies lie at the heart of price wars, which occur when retailers compete with The study has contributed to the body of knowledge by establishing that product quality, customers focus, training and process management through total quality management in telecommunication industry in Kenya.

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