A survey of the influence of competitive strategies on performance of oil firms in Kenya

Abstract

The oil industry in Kenya plays a significant role in the economic development of the country. It makes a major contribution in the transport industry and other commercial industries which use gas and diesel. The industry has been going through many changes since liberalization in 1994. This removed barriers of entry and with many players in the industry, intense competition started. The study sought to determine the competitive strategies employed by the major oil firms in Kenya and the influence of the competitive strategies on the performance. The study was carried out as a descriptive research. Data was collected through semi-structured questionnaires which were directed to the Marketing and Commercial Managers of the firms. The findings of the study revealed that the most commonly used competitive strategies in the industry are differentiation, market focus, diversification, product development and mergers and acquisition. The research also revealed that some of the differentiation strategy variables had a relatively significant correlation with performance. The researcher recommends further studies on the influence of competitive strategy on performance in other industries.