Analysis of the Structural Attractiveness of Kenya's Sugar Industry

Abstract

The character of industries varies from one industry to another. Industry attractiveness on the other hand is evidenced by the profitability of the industry which can be deduced from the performance of the firms in that industry. Essentially industry structure is very important as it's a fundamental determinant of a firm's profitability and consequently industry's attractiveness. The objectives of the study were determining the structural characteristics of the sugar industry in Kenya and consequently determine the structural attractiveness of the sugar industry in Kenya. The study was greatly motivated by the fact that the millers in the industry are grappling with performance and on the other hand there are many entrants. The questions were divided into three subheadings with the first one targeted towards gathering data about the general background of the firms. Part II focused on structural manifestations of the industry and Part III focused on the structural attractiveness of the industry. Questionnaires were administered to Chief executive officer or corporate strategy managers and where these positions were not in existence, to marketing managers and or managers' in-charge of strategic planning. The study targeted 12 millers and all the 12 millers were served with the questionnaires which were answered and returned. In analyzing it was discovered that the industry has a growth potential. The structural manifestations witnessed and the driving forces in the industry permits adequate profitability. The research was however limited to the millers only meaning that other industry players like the jaggeries were left out thus further research may be conducted on the same.