Effect of competitive strategies on the performance of liquefied petroleum gas companies in Nairobi County, Kenya
Date
2024
Authors
Njiru, C. M.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
It is essential for Liquefied Petroleum Gas (LPG) companies to outperform their competitors in the industry. LPG consumption has expanded in Kenya in recent years, thanks to better import and distribution facilities. The use of LPG in the commercial sector doubled to around 124,000 metric tonnes by 2017, up from a low base in 2014. In 2018-19, rapid demand growth continued, with demand almost doubling to 217,000 metric tonnes. Demand has boosted competition among LPG manufacturers, which has resulted in price wars. This study examined how competitive strategies influence the performance of LPG companies and how the performance of liquefied petroleum gas companies in Nairobi County is affected by competitive strategies. The specific research objectives were to determine the impact of focus strategies on performance; to define the impact of differentiation strategies on performance, and to determine the impact of cost leadership strategies on LPG business performance in Nairobi County. The study used a descriptive cross-sectional research design approach. LPG companies in Nairobi County were investigated and the sample size was 154 respondents, selected using simple random sampling. Cronbach's alpha was used to verify reliability, and content validity was assessed by consulting domain experts. The data was analysed using IBM Statistical Package for Social Sciences (SPSS) version 29.0.2.0. The key findings of the study were that, focus strategy increased performance significantly and differentiation strategy on the other hand had a non-significant increase on performance. Similarly, a unit increase in cost leadership strategy led to a non-significant improvement in performance. The study recommends that the leaders or decision makers of LPG companies widely adopt a focus strategy as it has a significant influence on firm performance compared to other strategies. The study also suggests that further studies be performed on the impact of differentiation and cost leadership strategies on firm performance.
Description
Full - text thesis
Keywords
Citation
Njiru, C. M. (2024). Effect of competitive strategies on the performance of liquefied petroleum gas companies in Nairobi County, Kenya [Strathmore University]. http://hdl.handle.net/11071/15596