Influence of Strategic Positioning on Organizational Performance Among Sugar Companies in Kenya

Abstract

In the 21st century business landscape, firms compete in a complex and challenging context that is being transformed by many factors from globalization, frequent and uncertain changes to the growing use of information technologies. Thus, achieving the desired performance is a major pre-occupation of senior managers in the competitive and slow growth markets, which characterize many businesses today and the sources of competitive advantage have been a major concern for scholars and practitioners. Most organizations search for the best strategies in order to consolidate their position in the market. Maintenance of competitive position and application of appropriate strategy most frequently ensure company's survival in the market and good results of its performance. As competition intensifies, many businesses continue to seek profitable ways in which to differentiate themselves from competitors. The objective of the study was to determine the influence of strategic positioning on organizational performance among sugar companies in Kenya. The study adopted descriptive cross sectional research design. The population of the study consisted of all the ten sugar companies operating in Kenya. The used primary data which were collected through self-administered questionnaires. The data collected was analyzed using descriptive statistics and inferential statistics (measures of central tendency, dispersion, and regression and correlation analysis). Pearson product moment correlation was used to establish the relationship between the variables in the regression. The findings of the study was that the companies uses positioning strategies to fine tuning the strategy, provides the framework upon which to build and coordinate the elements of the marketing mix, knowing where to confront competition from and where to avoid, increase sales, provides the company with a unique image in the market place, increase the company market share, reduce response time for product volume changes, reduce total cost, and reduction of response time for product design change. Costing and promotion strategy was achieved by the companies through buying in bulk in order to reduce on costs, undertaking promotion of products in order to appeal to its customers, selling products at the lowest competitive price thus increasing market share and accepting multiple forms of payment from its customers. The price charged by the companies was the same as the competitors, reflect organizational goals, companies analyzes competitors' costs, prices before fixing prices of its products, prices are lower than those of competitors in some cases and that the company monitors movement of its product market share in order to determine the price. The companies were found to differentiate themselves through product reliability, brand image, firm reputation and customer service, packaging the products in a creative way, delivery system that ensures that the organization differentiates itself from the competitors and advertising campaign or other sales promotions. The quality of services influence the competitiveness of the companies through provision of reliable products to its customers, ability to convey trust to its customers, responsiveness to customers, providing quality services that exceeds its customers' expectations, empathy to its customers, and presenting a realistic picture of their service to customers by checking the promotional messages for accuracy. The study further established that costing and promotion, pricing, differentiation and perceived quality of services influenced the performance of the sugar companies.