Competitive Strategies Adopted by Motor Vehicle Parts Manufacturing Firms in Kenya

Abstract

Competition is a key influencer of how a business operates and for a firm to operate in a highly competitive environment and generate high returns to its shareholders it must employ effective strategies and implement them efficiently. The study sought to determine the intensity of competition felt by motor vehicle parts manufacturing firms and also to establish the competitive strategies The research was carried out in Kenya and the population of the study was from a list of motor vehicle parts manufacturing firms obtained in from the Kenya association of manufacturers. a sample of 15 firms was selected as sample representing a total of 40 firms. The theoretical underpinnings of the study were the porter‟s five force analysis and generic competitive strategies A descriptive qualitative design was used for the study and primary data was collected through a questionnaire with both open and closed questions, data analysis was done through frequencies, percentages and the findings presented in form of tables, charts and graphs.The study established firms in this industry are facing stiff competition from rivalry between firms, threat of new entrants, customers and suppliers having strong bargaining power. The study also established that firms in this industry have adapted competitive strategies which include cost leadership, focus strategy and differentiation strategy in order to survive