Application Of Porter's Generic Strategies Framework In Hospitality Establishments In Nairobi

Abstract

The study investigates the application/use of porter's generic strategies in hospitality establishment in Kenya with the concentration on Nairobi. The research considered 80 hospitality establishments in Nairobi as the population. A sample of 35 establishments was randomly selected within the three strata. Out of the 35 establishments selected, 12 establishments responded reflecting a response rate of 34.28%. The data was collected using a questionnaire where the method of "drop and pick later" was adopted. Data analysis was done by use of frequency tables and relative percentages especially on the bio data and content use of mean scores and content analysis in the area of application of the model. Content analysis was emphasized because open ended kind of questions adopted throughout the questionnaire. The study concludes that there is general application of the generic strategies as propounded by porter. Of the establishments studied, 70% use cost leadership, 91.6%)use differentiation, 75% use focus, while there is evidence that approximately 60% of the respondents use all the three generic strategies or a combination of the strategies. It is also evident that 100 % of the respondents gather external information from about competitors on a regular basis and continuously review their strategies in order to create competitive advantage. This trend is more pronounced especially now when the industry has been going through some downturn. Differentiation seems to be a major strategy, especially in order to counter the enormous competition and the very unpredictable external environment the industry deals with especially the customer with the ever-changing tastes and preferences.