Competitive Strategies on Firm Performance: A Study of the Hospitality Industry in South Rift Region

Abstract

Problem Statement:  Previous research has shown that strategic management, which is concerned with market competitiveness, leads to improved performance far more often than it leads to no change or even worse performance. These studies revealed the existence of competitive strategies in the firms studied. However, they did not examine the influence of these strategies on the performance of the firms studied. Also, these studies done in Kenya did not relate competitive strategies to performance.

General objective of the study: The general objective of the study was to establish competitive strategies for the firm performance of the hospitality industry in South Rift Region, a case of South Rift Region, Kenya.

Research Design: The study adopted a descriptive research design as it clearly suits the cause-and-effect relationship studies.

Finding: The findings indicated that there is a positive significant association between cost leadership strategy on the performance of hospitality firms in South Rift Region, as shown by a correlation coefficient of 0.260 and a p-value of 0.002.

Conclusions: The researcher concluded that the hotel charges low prices to enjoy high-profit margins. The hotel embraces technology to reduce the cost of service delivery. The hotel has a favorable access to low-cost materials.

Recommendation: The researcher recommends that hoteliers embrace low prices to attract more customers, which translates to high-profit margins. The hotels should do a proper market search on where to source low-cost materials. Since the world is advancing in technology, hotels should embrace modern technology to improve their efficiency.