Influence of Generic Strategies on Organizations' Competitiveness of Sugar Firms' in Kenya

Abstract

Sugar firms in Kenya have been subjected into stiff competition mainly from low cost producer of sugar in the world. In order to be more competitive, sugar firms have engaged generic strategies to advance on their competitiveness. Study purpose was to assess generic strategies influence on organizations' competitiveness of sugar firms. The study used descriptive cross-sectional research design and study was carried out in Kenya sugar sector.  Target population was all the twelve sugar firms with one hundred and ninety managers. The sampling procedure was done using a formula developed by Krejcie& Morgan table to come up with a sample of 127. Questionnaires were the data collection instrument of this study mainly to collect primary data and they were administered to respondents by the researcher. Piloting of the research instruments was done where two sugar firms were selected for the piloting and the respondents from these firms who were not included in the actual study. The researcher used Cronbach's alpha coefficient as a tool of defining dependability of research tool. The study results indicated that correlation between all measures of between generic strategies (cost leadership, product differentiation and market focus strategies) and organizations' competitiveness of sugar firms was a statistical significant and positive (p < .05). results also revealed that generic strategies (cost leadership, product differentiation and market focus strategies) had a positive and significant influence on organizations' competitiveness of sugar firms' (R = .715). Generic strategies (cost leadership, product differentiation and market focus strategies) had explanatory power over organizations' competitiveness of sugar firms' because it accounts for 51.1 percent of organizations' competitiveness of sugar firms' change (R-square = .511). The study therefore concluded that there was statistically significant influence of generic strategies on organizations' competitiveness of sugar firms in Kenya (p < .05). The study recommended that sugar firms in Kenya need to consider an upsurge in the usage of generic strategies (cost leadership, product differentiation and market focus strategies) in their operations since this study has found out that they have significant and positive influence on organizations' competitiveness of sugar firms'.