INFLUENCE OF STRATEGIES ADOPTED BY SHOP BUSINESS ON COMPETITIVE PERFORMANCE IN NAKURU TOWN CBD

Abstract

The main purpose of the study was to determine the strategies used by shop business to achieve competitive performance. Specifically the study sought to establish the influence of product differentiation and supply chain management as strategies adopted by shop business to achieve competitive performance of hawkers. The study was guided by dynamic capability theory and Porter’s perspective of competitive advantage. The research employed descriptive cross sectional survey which enabled the researcher to explain the relationships among many variables. The main focus of the study was quantitative in spite of some focus being qualitative. The sample size was calculated using the mathematical approach developed by Miller and Brewer. The target population of the study constituted 260 shop business owners in Nakuru CBD dealing with electronics while the sample comprised of 72 shops. The study used a structured questionnaire to collect primary data from the respondents. After data was collected it was cleaned to get rid of extreme outliers and analyzed using both descriptive and inferential statistics. This was performed with the help of the Statistical Package for Social Sciences (SPSS) tool. Descriptive analysis entailed measures of distribution, central tendencies and variations while inferential analysis used Pearson’s correlation coefficient and multiple regression. A linear regression model was used to depict the connection between the various variables. From the findings the researcher concluded that a positive association between product differentiations and competitive performance of shops against street vendors. The researcher further concluded that there is positive significant association between supply chain management and competitive performance of shops against street vendors in Nakuru town CBD. From the findings the researcher recommended that shops within Nakuru Town should differentiate themselves and their product from street vendors. They can achieve this by making the customer more sensitive toward the buying process. The study further recommended that shop business owners should find a low-cost supply base and at the same time meet the quality requirements. The researcher suggested that further studies should be conducted on capability dynamism and competitive advantage of SMEs in Nakuru Town.