EFFECT OF COMPETITIVE STRATEGIES ON FIRM PERFORMANCE (A CASE STUDY OF NATIONAL OIL CORPORATION OF KENYA)

Abstract

Abstract: This study investigates the effect of competitive strategies on firm performance using a case study of the National Oil Corporation of Kenya. The study sample size was 75 respondents. So questionnaires were administered to 75 respondents, where the response rate was 64, which translates to 85.53%. However, 14.67% did not respond to the study. The study analyzed the data collected to describe the study variables using descriptive statistics, which helped to establish the influence of the independent variables on the dependent variable. Data was analyzed using Excel and Statistical Package for Social sciences (SPSS). Further, it was presented using tables and pie charts. On the other hand inferential statistics were analyzed by use of multiple regression and coefficient of correlation analysis to determine the relationship among variables. The study carried out this analysis based on the objectives and discussed these with reference to the literature reviewed in chapter two. Some of the questions in the questionnaire were on a 5 point Likert Scale. The study carried out inferential analysis by first using a correlation analysis. The correlation was done using the Pearson’s product moment correlation. The study found that the average performance of NOCK was to less extent and each of the indicators of performance; average monthly sales, average monthly total cost, average monthly net profit, profitability growth, employee satisfaction, and employee engagement was found to be  less extent. The study made policy recommendation based on the findings and study objectives. The study recommended that liquefied petroleum gas should ensure that they increase the proficiency of the cost leadership through; offering low priced products, building customers’ loyalty, prompt services/delivery of products; retention of popular staff, and employing high caliber staff. Meanwhile; offering price discount and engaging in promotional activities highly affected the firm performance of the NOCK, the liquefied petroleum gas should enhance their profitability growth strategy by seeking to achieve; an increase in the market share and financial gains, a secure dominance of growth in markets, and restructure a mature market by driving out competitors.

Key Words: Competitive Strategies, Firm Performance, Cost Leadership