Relationship Between Competitive Strategies and Performance: a Case Study of Bamburi Cement Limited

Abstract

Strategy is the sum of actions an organization intends to take to achieve long-term goals. It is important for the business to monitor their environment with a view to creating strategies that will set them apart from their competitors or will cause them expand their capacity and capability. There are important dimensions that support the strength of strategies adopted by a firm that can lead to superior performance levels in the present competitive market conditions. A firm is said to have a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential player. Products differentiation, cost controls and market focus strategies has become a key source of competitive advantage for the firm and have over the years enabled them to cope with increasing organizational and technological complexities as well as new entrants into the market. The study reviewed the relationship between competitive strategies and performance of Bamburi Cement Limited. The study employed a case study research design. Data was collected using questionnaires which were administered to all the heads of departments and managers in the three branches; Mombasa, Athi River and corporate headquarters in Nairobi. Qualitative data collected was analyzed using descriptive statistics. This enabled the researcher to make general statements in terms of the several attributes and conceptualization of the study. The study established that Bamburi cement measures customer focus and satisfaction, profit after tax and return on investment and rates the performance. The company has adopted targeting a specific market niche/segment competitive strategy which is highly utilized. It also adopted improving operational efficiency strategy and controlling the quality of products. Metrics based on this perspective allow the managers to know how well their business is running, and whether its products and services conform to customer requirements that is, the mission. The study findings revealed that vigorous pursuit of cost reductions and identification is a competitive strategy adopted by the company. The company provides outstanding customer services so as to keep the customers. It has developed brand or company name as a competitive strategy. The company measures learning and growth perspectives where employees go through training, mentorship and tutorials within the organization. The study concludes that the success of a company is mostly embodied in performance and competitive strategies enabling it to meet stakeholder obligations and survive competitive market forces. It is therefore imperative that companies proactively apply effective control systems in strategy management so as to ensure intended results are realized and any deviations corrected. The study recommends the management of Bamburi Cement Limited to implement corporate strategies from an informed position. It is important for the company to enhance and entrench the field team feedback process by integrating related competitive strategies in the performance of the company.