JANE TERRY NYAMBURA1

PRESBYTERIAN UNIVERSITY OF EAST AFRICA

PROF. NEMWEL BOSIRE2

PRESBYTERIAN UNIVERSITY OF EAST AFRICA

CITATION: : Nyambura J.T. & Bosire N. (November, 2018). Evaluation of effect of generic strategies on competitiveness in Kenyan Tea Sector: A case of Kisii County. International Journal of Economics and Finance (IJEF) Issue No XI, Volume 4, pp 406-424.

ABSTRACT

A firm has a competitive advantage when it implements a strategy competitors are unable to duplicate or find too costly to imitate. In the tea sector, about half of Kenya’s tea exports had found major markets in countries such as Pakistan, Egypt, Afghanistan, the united Arab emirates and Yemen just to name but a few. Unfortunately, the massive production increase was a major cause for concern for the stability and competitiveness of the sector, prompting this study to evaluate the effects of generic strategies on competitiveness in Kenyan tea sector: A case of Kisii County. The objectives of the study were: To establish the impact of focus strategy on competitiveness, to determine the impact of cost leadership on competitiveness and to find out the impact of differentiation on competitiveness in the Kenyan Tea Sector: A survey of Kisii County. The study used descriptive and explanatory research designs to secure information concerning an existing phenomenon from a selected number of respondents on their opinions in relation to the impact of generic strategies on competitiveness in the Kenyan tea sector: A case of Kisii County. The study was carried out between April 2016 and June 2016, data being collected by use of open and closed ended questions on a well structured questionnaires based on objectives of the study for 36 respondents sampled purposively from all the censored factories. Completed questionnaires were analyzed both qualitatively and quantitatively. Qualitatively it was organized into patterns relevant to the research while quantitatively it was analyzed using descriptive statistics mainly frequencies. Secondary data was also used to enhance the quality of the study by providing necessary data on strategies used to ensure growth. Frequency distribution tables, Pie-charts, bar graphs were used to give a summary of the collected data. The study established that all the strategies studied yield returns for the sector in terms of profitability but cost leadership strategy was found to yield more as compared to other strategies under study.

Keywords: :Competitive Advantage, Competitive Strategies, Differentiation, Focus and Generic Strategy.
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