Competitive Strategies Adopted by Small Scale Enterprises in Exhibition Halls in Nairobi

Abstract

Small-Scale enterprises within Nairobi Central District have witnessed dramatic changes as a result of Business Clustering. This has impacted significantly on the state of competition. For enterprises to survive this stiff competition, it has been necessary to develop competitive strategies to enable them achieve a competitive advantage over their competitors. This study sought to establish and document the various competitive strategies being adapted by small-scale enterprises to compete effectively. The study also sought to establish factors that determine the competitiveness of enterprises within business clusters. The study focused on 40 small-scale enterprises that had been sampled; only 30 responded positively to the study. Data was collected through questionnaire method. Questionnaires were administered through personal interview and drop and pick method. Drop and pick method was used where target respondents were not easily available in their outlets. On one hand differentiation strategy was apparent with enterprises located within the city center while those located on town..•peripheries had deliberate attempts to adapt cost leadership strategy . From the analysis it was established that small-scale enterprises used generic strategies to some extent in an attempt to gain competitive advantage. Cost leadership strategy had a - mean score of 2.88, differentiation had 2.36 while focus strategy had a mean Score of 2.52. IX The standard deviations for these strategies did not vary significantly. It shows that these strategies were uniformly used by most enterprises within clusters. There are several factors determining the competitiveness of enterprises within Nairobi central business district. Research findings on one hand showed that the major determinants of competitiveness were offering variety of products which had a mean score of 1.87, ensuring high quality had a mean score of 1.83, strategic location had a mean score of 1.50, offering discounts and the ability and skills of the enterprise owner. Small scale enterprises should also use other strategies to remain competitive like bench marking, training staff in customer care and carrying out continuous research to keep pace with the ever changing customer preferences.