Product Diversification as a Strategic Approach by Youth Funding Organisations in Kenya

Abstract

The purpose of the study was to investigate the product diversification as a strategic approach by youth funding organisations in Kenya. Specifically the study sought to establish the extent of product diversification as a strategic approach; to establish the benefits of adopting product diversification as a strategic approach as well as establishing challenges associated with the adoption of such a strategy. The study employed a crosssectional survey research design where population comprised of eleven Youth Funding Organizations in Kenya. The study used both secondary and primary data. Primary data was collected by use of a structured questionnaire to top and middle level managers. The questionnaire contained both closed and open questions and was administered to top management of the organizations. The secondary data was obtained to clarify variables related to the study. Data was analyzed through use of quantitative data analysis techniques or statistical methods e.g. regression model. This included frequency distribution, percentages and measures of central tendency. From the findings, the study concludes that in addition to advancing general loans, the youth funding organizations had advanced various products to the youth. This step is prudent since it enhances diversity of products which helps to reduce competition for buyers. It also allows the youth to specialize in the areas which they are best talented. Therefore Youth Funding Organizations should come up with strategies which will enable them to compete effectively with other organizations. This can be done through market analysis and also analysis of trends in customer tastes and preferences.