Competitive Strategies and Performance of Selected Large Supermarkets in Nairobi City County, Kenya

Abstract

A company's success is significantly influenced by its competitive response strategy. Competitive response strategies essentially aim to steer a business through its uncertain and erratic external environment while enabling it to keep order and efficiency in its internal operations. The COVID-19 pandemic negatively affected Kenya's retail industry and the economy. Due to a fall in economic productivity and consumer spending, many shops have struggled with smaller sales margins. Due to declining sales, companies have also been forced to lay off employees and close some branches. There is plenty of research on competitive response methods in other industries. However, few studies have focused on supermarkets, and no studies exist on whether or not these strategies were effective during the Covid-19 epidemic. Therefore, this study aimed to establish how competitive response strategies affected certain supermarkets' performance during COVID-19 in Nairobi. The research examined the effect of supermarkets' cost leadership, focus strategy, and differentiation on their operations during the COVID-19 crisis in Nairobi, Kenya. Specific research questions guided the overall study aims. The study employed a descriptive research design to address the research questions. The population of interest included the top, middle, and lower-level management staff from supermarkets participating in this study. The target population comprised 204 workers from various stores within the chosen supermarkets. In this investigation, the census approach of data collection was employed. Semi-structured and closed-ended questionnaires were the data collection instruments. The equipment used to perform the study was checked to confirm its accuracy and validity before it was set up for use. The data was then processed and categorized, and ready for analysis. Descriptive analysis was used to interpret the findings using average, frequency, and confidence interval statistics. The research only used inferential analysis inside the multi-regression paradigm. The model showed the level of correlation between the research variables. For inferential analysis, the correlation showed the significance of the linkages underpinning firm performance, cost leadership, and differentiation. Additionally, regression analysis showed the significance of the relationships underpinning dependent and independent variables. Lastly, the research complied with the required ethical standards and guidelines.