Strategies Adopted By Agrochemical Firms To Achieve Competitive Advantage In Nairobi City County Kenya.

Abstract

Strategies adopted by the firms are the game change in the business competitive environment. The customers’ demands for the products those fitting their tastes and preferences. Strategies are very fundamental in business environment. The research studied the strategies adopted by the agrochemical firms to enhance the competitive advantage in Nairobi. The research scrutinized differentiation, cost leadership, pricing strategies and market focus. The research targets 35 respondents in Nairobi City County and out of 35 questionnaires sent out 25 companies. The research findings posit that predictor variables accounted for the 84.69% of the factors that explained the competitive advantage. The four regressors’ variables are differentiation, Cost Leadership, Pricing Strategy and Market Focus. The analysis of Variance (ANOVA) has a P value is 0.0012 is lower than the stipulated 0.05 thus pinpointing that it is statistically significant. This illustrate that when all factors are maintained at zero (Constant), the competitive advantage is 32.2%. Furthermore, a unitary increase in one unit of differentiation leads to an increase competitive advantage by 39.8% all factors kept constant. A unit incremental in the cost leadership led to an increase in competitive advantage by 29.8% all factors maintained constant. A unitary incremental in the pricing strategy led to an increase in the competitive advantage by 50% and finally an increase in one unit of market focus strategy led to an increase in the competitive advantage by 30% all factors kept constant. Multiple regressed showed that Differentiation had T=1.439 and P=0.001; Cost Leadership T= 2.512 and P=0.013; Pricing Strategy T=2.813 and P=0.002 and finally Market Focus T=6.999 and P=0.015. This findings show that the entire four predictor variable posted P value less than 0.05 hence statistical significant. The research concluded that; Differentiation played an integral part in the research finding, cost leadership affects the competitive advantage through the lowest-cost in the procurement of the inputs. The research also showed that from dynamic pricing strategies to fixed pricing method had a great influence on the competitive advantage. The study finding showed that strategies adopted in the market penetration were very crucial in the competitive advantage.