Competitive strategies for enhancing business performance: a study on electric motorcycle companies in Kenya
Date
2023
Authors
Elle, A. K.
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Publisher
Strathmore University
Abstract
This study was conducted to quantitatively investigate the link between porter’s generic strategies on the performance of electric motorcycle businesses in Kenya. This is against the backdrop of an empirical gap on the influence of porter’s generic strategies on the performance of electric motorcycle businesses. Literatures on the influence of Porter’s generic strategies are available but limited to already established businesses and also lack of literature that quantitatively links the generic strategies to business performance of new products like electric motorcycles may lead to business pursuing the wrong strategies. Therefore, to fill these gaps the study was guided by the following research objectives; to establish the effect of differentiation strategy on the performance of electric motorcycle business in Kenya; to establish the effect of cost leadership strategy on the performance of electric motorcycle business in Kenya; to establish the effect of focus strategy on the performance of electric motorcycle business in Kenya. To measure the relationship between the dependent variable (organizational performance) and the independent variables (focus strategy, differentiation strategy, and cost leadership strategy), this study employed an explorative research design and a positivism research philosophy to achieve these objectives. The research used simple random sampling technique to collect data from the target population of all the electric motorcycle businesses in Nairobi County, adopting a sample population of 73. Further, the study adopted a descriptive model and the data gathered using questionnaires, through both online and physical quantitative surveys. The data was analyzed using SPSS statistical software and presented using tables, graphs and charts for both descriptive and inferential statistics using regression and correlation analysis. Individually, all the generic strategies had a positive significant effect on the business performance of electric motorcycle dealers in Kenya. The study found the degree of correlation between focus strategy and business performance was highest at 81.93% and variation in business performance as a result of Focus strategy employed is 0.6713. The study also found that cost leadership strategy led to 51.86% increase in business performance whereas differentiation strategy led to 39.97% increase in business performance. Due to the infancy stage of the electric motorcycle business in Kenya and industry size, the study recommends a longitudinal approach to achieve a further conclusive result. It also guides the industry players to explore a hybrid approach in designing their business strategies because there are other factors that impact the electric motorcycle business performance in Kenya like government policies, consumer knowledge and mindset.
Keywords: Focus strategy, differentiation strategy, cost leadership strategy, business performance, electric motorcycles.
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Citation
Elle, A. K. (2023). Competitive strategies for enhancing business performance: A study on electric motorcycle companies in Kenya [Strathmore University]. http://hdl.handle.net/11071/15417