Title:
COMPETITIVE STRATEGIES AND COMPETITIVE ADVANTAGE OF LOCALLY OWNED BUILDING AND CONSTRUCTION FIRMS IN KIAMBU COUNTY, KENYA

Authors:
Kananu Dorris Japheth & Njuguna Jane Wanjira, Kenya

Abstract:

The constant changes experienced in the business environment makes it difficult for firms to gain and sustain competitive advantage. Therefore to remain competitive firms are compelled to adopt competitive strategies. The aim of this study was to investigate the influence of competitive strategies on competitive advantage of locally owned building and construction firms in Kiambu County, Kenya. The target population was 175 locally owned building and construction firms registered by the relevant body. The study used proportionate sampling to select a sample size of 58 firms.  Respondents were the project managers or senior staff member. Questionnaires were used to collect primary data which were validated through piloting. Data collected was analyzed using both descriptive analysis such as means and standard deviations and regression analysis. The findings of the study indicate that differentiation strategy,  product quality strategy, combination strategy and product quality strategy had widely been adopted by the locally owned building and construction firms and they had a positive influence on the competitive advantage of the firms with regression coefficients r = 0.700, r = 0.450, r = 0.363 and r = 0.119 respectively. Furthermore the study also established that product quality strategy led to clients to have product satisfaction with most of the products being durable and with minimum complaints recorded. Combination strategy played a key role in ensuring stake holders were involved in key decision makings, lower the costs of products and improve customer loyalty. Further although focus strategy directly influenced competitive advantage, its impact on competitive advantage was lower compared to the other strategies under this study. The study recommend that Locally owned building and construction firms management need to ensure that the firms widely practice differentiation strategy as it provides customers with unique product characteristics leading to high levels of satisfaction. The firms should consider adopting product quality strategy due to its positive influence on competitive advantage as well as consumer satisfaction. However firms should come up with various appropriate methods of controlling costs when developing their products while still maintain the quality.