Competitive strategies adopted by cosmetic businesses within Nairobi central business District

Abstract

The cosmetic industry in Kenya has in the past few years experienced a lot of change and growth which has affected the state of competition. This study was guided by two research objectives: to determine the competitive strategies adopted by cosmetic businesses in Nairobi Central Business District and to establish the challenges that cosmetic businesses in Nairobi Central Business District face in implementing the competitive strategies adopted. The study adopted a descriptive survey design. The target population consisted of 100 cosmetic businesses within Nairobi Central Business District. The study used primary data collected using a questionnaire. The data collected in the proposed study was analyzed using descriptive statistics. This involved the use of frequency tables, percentages, rank ordering, and means scores. The study concluded that there was very strong competition among the cosmetic businesses hence, the need to develop competitive strategies. Some of the strategies adopted by these firms included product differentiation, cost leadership, offering quality customer services, opening for longer business hours, choosing a strategic business location and applying information technology in the operations. The study further concludes that cosmetic firms within the Central business District in Nairobi faced several challenges. Some of these challenges included strict government regulations, inadequate capital for expansion, competition from cheap imports and high competition from hawkers. The study recommends that the County Government find mechanisms of controlling the business of hawkers so as to enable the cosmetic firms sell their products at competitive prices. The study further recommends that cosmetic firms invest in research and development to develop new innovative ways of serving their customers. This study finally recommends that the cosmetic firms form an association to allow for collective bargaining of their rights and negotiations with the relevant authorities to ensure smooth operations of their businesses