Competitive Strategies And Performance Of Agro-Chemical Firms In Industrial Area Nairobi County, Kenya

ABSTRACT

Superior performance is accomplished by serving client’s needs in an unexpected way. The more one of a kind the separation the more manageable the points of interest gathered since separation should definitely include costs which are recovered if the market will pay the vital premium costs. The study aimed to investigate the competitive strategies on performance of agro-chemical firms in industrial area, Nairobi, Kenya.The study sought to examine and document various competitive strategies used by Agro-chemical firms in order to compete in the market place. The specific objectives were to investigate differentiation as a competitive strategy on performance of agro-chemical firms in industrial area, investigate the effects of cost leadership strategy on performance of agro-chemical firms in industrial area, to assess the effect of pricing strategy on to performance of agro-chemical firms in industrial area and to find out the effect market focus strategy on performance of agro-chemical firms in industrial area. The research design used was descriptive survey which is useful for fact finding. The study targeted 83 employees of Agro-chemical firms and since the number of respondents were of manageable size the study used census. Questionnaires were utilized for gathering information which was dissected utilizing graphic and regression statistical tools and displayed utilizing tables. The data collection instrument were questionnaires. Graphs, tables and pie graphs was utilized to exhibit frequencies and percentage while tables were readied utilizing every factor or pointer. Out of the 83 questionnaires that were issued. 72 of were dully filled and returned to the researcher. This gave a response rate of 87%. This response rate concurred with Mugenda and Mugenda (2003) stipulation that a response rate of 70% and above is excellent. From the findings the respondents agreed that to a great extent their company differentiate herself through provision of quality and superior products to their customers, many of the respondents moderately agreed that company image differentiate them from their competitors. From the findings, many of the respondents strongly agreed that their firm will take every opportunity to control overhead and variable costs; majority of the respondents strongly agreed that their company purchase low cost raw materials to gain advantage on prices. Majority of the respondents strongly agreed that their organization uses dynamic pricing strategy to gain competitive. The study established that to a great extent many of the Agro-chemical companies policy does not allow dealers to sell competing products, many of the respondents agreed that companies have wide control of dealer activities, many of the respondents agreed that company strategy is to make a choice of customer segment while the majority of the respondents disagreed that their firm focus in one market for their products. The market focus strategy significantly affects performance of Agro-chemical firms. The study concludes that Agro-chemical company’s policy does not allow dealers to sell competing firms products and that the Agro-chemical companies have wide control of dealer activities. However, Agro chemical firms do not focus one market of customers for their products. They sell to both retailers and wholesalers. The study recommended that agro-chemical firms should use more of the pricing strategy than the other strategies of cost leadership and or differentiation. The study also recommends that Agro-chemical firms should meet the delivery cost of their products to the clients as this is a good way of building customers loyalty. In light of the study findings it is also recommended that Agro chemical firms offer price discounts in order to be competitive in the market and improve their performance.