Effect of competitive strategies on the performance of oil marketing companies in Kenya
Date
2023
Authors
Gichuhi, L.
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Publisher
Strathmore University
Abstract
Oil Marketing Companies (OMCs) have been critical for the fuel industry cost as they are the ones who buys the fuel from the offshore suppliers, finances the import and ensure delivery to supply the country. Oil marketing companies play an important role in a country’s economy, and thereby the well-being of these businesses is a necessity for that country’s future success. This study aimed to determine the effect of competitive strategies on the performance of oil marketing companies in Kenya. It aims to evaluate the effect of cost leadership strategy, differentiation strategy and focus strategy on performance of oil marketing companies in Kenya. The study was anchored on Porter’s competitive advantage and resource-based view theory. Positivism was the philosophical foundation for this study. The research design that was used in this study is the descriptive cross-sectional design. The target population for this study was the 71 registered oil marketing companies in Kenya. The study applied census in targeting all the 71 companies due to the small population. Primary data was collected using structured questionnaire. The descriptive and inferential statistics was used in data analysis. Descriptive statistics comprised frequencies, percentages, mean and standard deviations. The correlational analysis was used to determine the strength of the association between dependent variable and independent variables. The regression analysis was used to determine the effect of competitive strategies on the performance of oil marketing companies in Kenya. To present the findings, tables, graphs and charts were used. The respondents participated in the study voluntarily and their anonymity was ensured. The researcher ensured the respondents that the data was treated with privacy and confidentiality. The findings of this study showed that cost leadership, differentiation strategy and focus strategy have a positive and significant relationship with performance of oil marketing companies in Kenya. The study showed that Oil Marketing companies in Kenya have adopted these strategies to enhance their performance. The study suggests that the oil companies should study the market continuously. Further, the companies should be aware of what their competitors are up to. This would help the companies to make use the low-cost strategy without making loses by setting lower prices than those of competitors. Understanding the market would help the oil companies to differentiate its products better than competitors and the companies would know where to sell its products that is focus strategy.
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Citation
Gichuhi, L. (2023). Effect of competitive strategies on the performance of oil marketing companies in Kenya [Strathmore University]. http://hdl.handle.net/11071/13367