Strategy and Performance of Agricultural and Veterinary Retailers in Uasin Gishu County, Kenya

Abstract

Over the years changes in the business environmental factors have contributed significantly to strategies, which in turn determine the success and/or failure of organizations. Stiff competition from several upcoming enterprises dealing with agricultural and veterinary chemicals in Uasin Gishu County has pushed Agrovet retailers to seek for suitable strategies to cushion themselves. This study was designed to establish the strategies employed by Agrovet retailers in Uasin Gishu County, and to determine the influence of strategies adopted on performance. Through a descriptive cross-sectional survey, relevant data was obtained from 91 Agrovet retailers in Uasin Gishu County using a structured questionnaire and analyzed using both descriptive and inferential statistics. The findings show that majority of the Agrovet retailers employ business, functional and operational level strategies while a few employ corporate level strategies. Some of the strategies used by these Agrovets include; market development, cost leadership, staff development, computerization, marketing and penetration strategies. In terms of performance the Agrovets were found that there was significant relationship between corporate level and performance of Agrovets (β1=.244, p<0.05). Also, there is significant relationship between business level and performance of Agrovets (β2=.197, p<0.05). Further there was a significant relationship between functional level and performance of Agrovets (β3=.247, p<0.05). Lastly there was significant relationship between operational level and performance of Agrovets (β4=.308, p<0.05). The conclusion based on the findings is that strategies contribute to performance of the Agrovets in terms of number of transactions, sales volume and profitability levels. The study recommends that the management of the Agrovets need continue employing product differentiation, product development, shop branding, marketing budget allocation, and provide storage facilities as part of their strategies to enhance performance. The empirical findings on practice and theory application are useful in enhancing strategic management knowledge, theory and practice. Future studies based on the limitations of the study need to be conducted in other regions and using a different qualitative approach.