Responses of Jua kali artisans to challenges of increased competition: The case of Kamukunji area in Nairobi

Abstract

This study was undertaken on Jua Kali artisans in Kamukunji, Nairobi who are mainly metal artisans. The study sought to assess the relative importance of the challenges of competition and determine how the artisans are responding to the challenges of increased competition. For determining the responses to competition, Porters five-force industry model was adopted that is the entry of new competitors, threat of substitutes, bargaining power of suppliers, bargaining power of buyers and rivalry between existing competitors. Fifty artisans were picked to form the sample of the study using systematic random sampling from the artisans registered with Kamukunji Jua Kali Association. Data was analyzed and presented in form of summary statistics of mean and standard deviation while significance testing was done using Z-test. The study found out that the intensity of competition is moderate and that the responses adopted by the artisans are marketing, price wars and new product development. Training was lacking among the artisans and thus the study recommended that training opportunities be availed to the artisans to help them improve their capabilities. The study used primary data collected through an interview guide administered to fifty respondents located at Kamukunji Jua Kali sheds in Nairobi. However, only thirty six of these respondents were interviewed.