INFLUENCE OF COMPETITIVE STRATEGY ON ORGANIZATIONAL PERFORMANCE IN STANDARD GAUGE RAILWAY, KENYA

Abstract

The study is on the influence of competitive strategy on performance of transport industry a case 
of Standard Gauge Railways. was guided by both general and specific objectives; to examine the 
effect of cost leadership strategy on performance of standard gauge railway; to determine the 
effect of differentiation strategy on performance of standard gauge railway; to evaluate the effect 
of focus strategy on performance of standard gauge railway and to determine the effect of pricing 
strategy on performance of standard gauge railway. To strengthen the conceptual framework the 
study used the following theories cost leadership theory, generic strategies theory, diamond 
theory of national advantage and pricing strategy theory. The study targets 192 Kenya Railways
employees who are charged with the responsibility of strategic planning practice who are 
commercial managers, general managers and operations managers. The study sample size 
was129. The research design was cross-sectional. This was done using drop and pick method. 
The findings were then be presented in figures and tables followed by explanations, discussions 
and recommendations for theory and practice as well as policy and for future studies. A modified 
Likert scale questionnaire was developed and divided into three parts. A pilot study will be 
carried out to refine the instrument. The quality and consistency of the study was further assessed 
using Cronbach's alpha. Data analysis was performed on a computer using Statistical Package for 
Social Science (SPSS Version 25) for Windows. Data was presented in form of means, standard 
deviation, percentages and tables. The study concluded that cost leadership, differentiation 
strategy and focus strategy has no significant effect on organizational performance of standard 
gauge railways in Kenya. The study concluded that the standard gauge railways adopt cost 
leadership strategy as it has been found to have a positive significant effect on performance; 
while differentiation strategy ensured that the standard gauge railways products are distinctly
identified, customer loyalty created leading to retention of customers and attraction of new ones. 
Therefore, SGR should produce products of different quantities for different markets. This would 
greatly increase their market base because they will be in a position to access transit customers 
who can transport bulk and the ordinary customers who can only afford small portions at a time; 
focus on more ways of dealing with the challenges is also needed for maximum profitability and 
that Standard gage railways should concentrate on products not offered by other transport 
companies. Products should be tailored to the market needs. Standard gauge railways should 
serve a specific niche in the market. Standard gauge railways should concentrate in one market 
segment that they should segment markets to better serve customers