COST LEADERSHIP STRATEGY AND PERFORMANCE OF ALCOHOL BEVERAGE FIRMS: A CASE OF KENYA BREWERIES LIMITED NAIROBI CITY COUNTY, KENYA
COST LEADERSHIP STRATEGY AND PERFORMANCE OF ALCOHOL BEVERAGE FIRMS: A CASE OF KENYA BREWERIES LIMITED NAIROBI CITY COUNTY, KENYA
Elizabeth Kanini Samuel - MBA Candidate, Department of Business Administration, Kenyatta University, Kenya
Dr. Elishiba Murigi - Lecturer, Department of Business Administration, Kenyatta University Kenya
ABSTRACT
Today's business environment is fraught with rivalry and constant upheaval. When businesses feel the heat from rivals, they often take matters into their own hands and come up with strategies to better compete. The growth of the economy and the increase in tax revenue are, in part, attributable to the alcoholic beverage business. A number of people, however, are very concerned about these businesses' abysmal performance. Kenya Breweries Limited and its contemporaries in the alcoholic beverage-manufacturing sector were the subjects of this study, which sought to establish if and how cost leadership as a competitive strategy affected firm performance. The study was anchored on Porter's generic competitive strategies and the balanced score card model. For this research, 886 employees were targeted. To collect data for this study, a random sampling method was used. Approximately 30% of the total sample came from each stratum. In light of this, a total of 266 people made up the study's sample size. A descriptive research design was used in the inquiry. The sample population consisted of workers from Kenya Breweries Limited. Primary data was acquired via a research questionnaire for this project. The dependability of the research tools was determined by calculating Cronbach's alpha using a threshold of 0.7. The study generated a both descriptive and inferential statistics. Descriptive analysis was used to compile the raw data into a digestible format for description and interpretation. The quantitative data was tabulated using the frequency distribution and cross tabulation features of SPSS software, version 21. Regression analysis was used to determine the nature of the relationship between the variables. The study established that cost leadership strategies (Coeff=0.481, Sig=0.000) is a statistically significant predictor of organizational performance. Recommendations are made for heightened investment in cost leadership as a competitive strategy, as it was found to be a positive determinant of organisational performance.
