Strategies Adopted for Competitive Advantage by Garment Manufacturing Export Processing Firms in Nairobi, Kenya

Abstract

It is the role of Governments around the world to spearhead development efforts in their respective countries. Among the strategies adopted in many developing countries is the establishment of Export Processing Zones. The establishment of EPZs in Kenya was aimed at facilitating export oriented industrialization as well as enhancing industrial growth and development in the country. This study assesses the strategies adopted by garment manufacturing EPZs in Nairobi, Kenya, as they strive to attain competitive advantage. Strategic management process is the most essential activity by business organization. This study was based on the Porter’s generic strategies of cost leadership, differentiation and focus in an attempt to discover the particular strategies relied upon by the firms under study. Data for the study was obtained by use of questionnaires as the primary source, which was administered to the top managers of the firms. The study adopted a descriptive survey design. The total population of this study was the nine Export Processing Firms in Nairobi. This study was therefore a census of the total population of all the nine garment manufacturing EPZs in Nairobi. Data analysis was done through the factor analysis method. The study established that the firms majorly rely on resource based view strategies to meet their market demands. In addition, most of these firms adopt low cost strategies whereas some of the firms are slowly introducing differentiation strategies in their attempt to satisfy high quality customer demands. This study recommends that the government of Kenya formulates policies that are not prohibitive to enter the garment manufacturing industry. That fair competition is encouraged by standardizing regulatory requirements across export firms found within the industry. In strategic management practice, this research highlights the importance of strategy formulation, implementation and evaluation. That the firms still need to identify and precisely formulate the particular strategies of interest and to fully implement them in order to succeed in their operations. In theory, this research builds on the existing body of knowledge of strategic management and particularly on the management of export processing firms.