Competitive strategies adopted by the retail stall exhibitors in Nairobi Central Business District

Abstract

This was a descriptive survey study designed to determine the competitive strategies adopted by the retail exhibition sector in the Nairobi Central Business District. Data was collected using self administered questionnaires which were given to sales people and owners at the stalls. The findings of the study reveal that cost leadership is the most commonly used strategy to attain competitive advantage. The main activities that the stalls engaged in to achieve cost leadership were by searching for low cost suppliers, optimal rent utilisation, ensuring location of stall is in an exhibition hall that has high population flow, hence the availability of many potential and repeat customers due to the convenient location. The selection of an exhibition location (hall) that is known to have high numbers of potential customers was the strategic activity that was highly applied, compared to any other cost leadership activity. Convenient locations include areas that have public transport in the neighboring area. This means that as pedestrians are coming from or going to the public means of transport, they are likely to stop at the stalls located nearby and make planned or impulse purchases. The study has also proven statistically that the competitive strategies widely applied and which contribute to growth in sales volumes by the retail exhibition sector are the focusdifferentiation strategies using location whereby the product is conveniently available to the customer and the next most extensively used strategy is differentiation using the ability to listen and to understand customer needs, tastes and preferences.