Influence of competitive strategies on performance of large supermarket chains in nairobi city county, Kenya

Abstract

This research study was on the various competitive strategies adopted by large supermarket chains in Nairobi City County. The study had one objective. It seeked to establish influence of competitive strategies on performance of large supermarket chains in Nairobi City County as well as determine the challenges encountered by the large supermarket chains in implementing competitive strategies. The study used a descriptive research design. Primary data was collected from 5 large supermarket chains in Nairobi County using questionnaires. The drop and pick method was used to collect data from the respondents. Descriptive statistics was used to summarize the data. These include percentages, frequencies, pie charts, tabulations and narratives. The study concluded that most of large supermarket chains in Nairobi City County had already adopted competitive strategies to respond to ever changing customer needs and competitive marketing nature whereby differentiation strategy, cost leadership strategy were the key competitive strategies adopted by most large supermarket chains which were surveyed with practices such as pricing products below that of competitors, strategic location of supermarkets to customers, offering unique customer service which is not easily imitated, continuously cutting cost across retail value chain, outsourcing and increased automation. The other competitive strategy also employed to little extent includes, focus strategy. Further the study concluded that there were various challenges faced by large supermarket chains in Nairobi County in applying the competitive strategies. Management style, interfunctional conflicts, need for compliance by Competition Authority of Kenya, resistance to change, poor communication and inappropriate strategy were established as the challenges facing large supermarket chains when implementing competitive strategies.