EFFECT OF GENERIC STRATEGIES ON SUSTAINABLE COMPETITIVE ADVANTAGE AMONG TOLL MANUFACTURING COMPANIES IN KENYA: A CASE OF ORBIT PRODUCTS AFRICA LIMITED
Romeo Magada Jamoza - Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
Prof. Margaret A. Oloko - Supervisor, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
This study sought to explore the effect of generic strategies on sustainable competitive advantage among toll manufacturing companies in Kenya with reference to OPAL. The study was guided by the following objectives; to analyze the effect of cost leadership strategy, market focus strategy and differentiation strategy on sustainable competitive advantage at OPAL. The study adopted a descriptive research design, the target population for this study was 71 management staff of the OPAL. Stratified proportionate random sampling technique was used to select 55 respondents. Primary data was obtained using self-administered questionnaires. The questionnaire was made up of both open ended and closed ended questions. Mixed methods data analysis techniques that were employed in this study incorporated both descriptive and inferential data analysis. Non-parametric data was analyzed descriptively by use of measures of central tendency and measures of dispersion as the tools of data analysis. For the parametric data, Pearson’s Product Moment Correlation Coefficient (r) was used. A multiple regression analysis was computed for all the study variables to determine whether the independent variables together predict the dependent variable. Analysis of Variance (ANOVA) was also done to establish whether the whole model is significant fit of the data and therefore form the tests of significance. Quantitative data was presented using frequency tables and figures. Qualitative data was derived from the open-ended questions in the questionnaire and was presented in prose form. The study found that cost leadership and market focus greatly affect sustainable competitive advantage of OPAL while differentiation moderately affects the sustainable competitive advantage of OPAL. The study concluded that market focus had the greatest effect on sustainable competitive advantage in Kenya followed by differentiation while cost leadership had the least effect on the sustainable competitive advantage in Kenya. The study recommends that OPAL should engage with emerging markets more closely, that the organization should also invest in the product research and development and adoption of modern manufacturing technologies that are efficient and environmentally sustainable, that OPAL should manipulate costs so as to gain cost leadership advantage and hence create sustainable competitive advantage and that the organization show enhance its product differentiation strategy with the aim of increasing its product range to capture more customers .
