Differentiation Strategy And Performance Of Bata Shoe Company Outlets In Nairobi City County, Kenya

ABSTRACT

Globalization has led to inflow of cheap leather products from such countries as China eroding the competitive position of Bata Shoe Company. The general objective of the study was to investigate differentiation strategy and performance of Bata Shoe Company Nairobi City County, Kenya. The specific objective of the study was to establish the effect of product development, to determine the effect of product branding, to determine the effect of packaging design and to determine the effect of customer service on performance of Bata Shoe Company. This study was anchored on Porter’s generic competitive strategy model, resource based view theory and the balanced scorecard. The study adopted descriptive research design. The target population of the study was 120 employees drawn from management of Bata Shoe Company outlets in Nairobi City County. The researcher used proportionate stratified sampling technique based on management levels to determine the sample size. The study used a semi-structured questionnaire, which was administered through drop and pick method to enhance the response rate. Descriptive statistics involved a summary measures including, mean and standard deviation. Nonetheless, inferential statistics entailed the use of multivariate analysis. A regression analysis was also employed with the aim of generating a regression output that was used in determining the effect of independent variables on the dependent variable and was used for making conclusions and generalizations. The results of data analysis were presented in form of figures, pie charts and tables. Qualitative data was analyzed using content analysis and presented in prose form. The findings of the study revealed that product development, product branding, and packaging design and customer service positively affect performance. The researcher recommends that; under Product development the company should intensify and allocate more and sufficient resources to product design and product improvement. Secondly, with Product branding, the company needs to focus its efforts on the brand association and brand positioning. Thirdly, under packaging design the company needs to put more focus on the logo and the color as they have the highest mean showing they have greater potential. Lastly, under Customer service differentiation, more emphasis should be placed on the communication and courtesy as depicted by the average mean scores. The company should also consider more training to its employees on communication and courtesy.