Competitive strategies adopted by small supermarkets in Nairobi

Abstract

The ability of firms to survive in the business environment is dependent upon their selection and implementation of a competitive strategy that differentiates the firm from competitors. As competition intensifies, many businesses continue to seek profitable ways in which to differentiate themselves from competitors and the small supermarkets are not exceptional. Consequently, all small supermarkets have continuously monitored and adapt to the environmental change. As a result of this, firms have to employ various strategies to survive in the industry. The study sought to find establish the competitive strategies adopted by small supermarkets operating in Nairobi. In attempting to get the objective, a simple random sampling technique was adopted. The population considered for the study was 227 small supermarkets operating in Nairobi. The data was sampled by taking the supermarket appearing after every five. Towards this end, the study collected primary data from the supermarkets on the competitive strategies they apply. The data was collected through the administration of questionnaires to the small supermarkets. The study established that the branding of an outlet differentiates it from others, the outlets use brand name in order to cultivate customer loyalty, charging fair prices, ensuring good customer services, reducing the prices of goods in order to attract customers and improving goods quality before selling, convenience and ease of accessibility, consistency with other outlets, general cleanliness of outlet, attractive in outlet layout, moving with change in consumer tastes and preferences, included improvement of customer service, cost cutting measures, use of latest technology, ensuring that the supermarkets are located in more strategic locations, automation of operations, business process rationalization, increased advertising and staff training.