Distribution Strategies as a Source of Competitiveness in the Logistics Firms in Nairobi, Kenya

Abstract

Businesses today operate in a market-driven, customer-oriented era and to survive in such a competitive environment, they have to be flexible, adaptable and above all provide superior service. One of the ways in which customer needs can be met is through effective distribution of goods and services and the core capabilities of a company engaged in distribution channel is to design and manage its distribution channel in order to gain maximum advantage in the market where competitive forces are changing. The objective of the study was to determine distribution strategies as a source of competitiveness in the logistics firms in Kenya. The study adopted cross sectional survey design. The population of the study consisted of all fifty three Logistics firms operating in Nairobi. The study used primary data which were collected through self-administered structured questionnaires. The data was analyzed and presented using mean and percentages. The findings of the study was that competitiveness was achieved by the firms through resources, capabilities and competencies that help a company attain a competitive advantage based on-superior efficiency, innovation, and quality and customer responsiveness, well-planned and executed strategy that is sustainable, service quality, distribution channels or image and reputation factors, pertaining to the organization as a whole rather than any individual service offering, technology development, human resource management, procurement, and firm infrastructure, offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices and strategy and operational effectiveness. The competitive edge achieved by the firms as a result of adopting distribution strategies was found to be increased profit margin, rise in revenue, increased market share, enhanced customer service, increased customer base and increased off customer waiver charges. The study concluded that the ability of a firm to compete in the competitive market depends on the distribution strategy adopted by the firms. Management has to synchronize the efforts and focus the resources strategically in the right direction to enhance the competitiveness. The study recommended that logistics firms should ensure that they maintain the distribution strategies which enables them to achieve competiveness in their industry and as such should concentrate only on those strategies