Effect of Differentiation Focus Strategy on Performance by Selected Car Rental Business: A Case of Nairobi City County, Kenya

Abstract

The objective of this study was to determine the effects of differentiation strategy on performance of selected car rental business a case of Nairobi City County, Kenya. This study was a cross-sectional descriptive study design where purposive sampling technique was used to select fiftteen (15) car rental business in Nairobi City County. Stratified and simple random sampling technique was employed in recruiting three categories of respondents. The three category of staff included, top level, middle level and bottom level management. Structured questionnaire was used to collect primary data which was analyzed by Statistical Package for Social Science (SPSS) version 22. Descriptive statistics such as frequency, regression and correlation analysis was used to give the results of the study. The findings of the study revealed that differentiation strategy was statistically insignificant at P value greater than 0.05 by Chi-square and analysis of variance there by accepting the null hypothesis that differentiation strategy had no effect on performance of car hire business in Nairobi City County. Correlation analysis revealed a negative relationship between indicators for performance improvement and differentiation strategy used at r = -0.05. In addition, correlation analysis revealed that there was a positive relationship between the extent of performance differentiation strategy used at r = 0.096. Multiple logistic regression analysis showed that there was no significant (P >0.05) impact of differentiation strategy on performance. In conclusion, differentiation strategy adopted by the selected car rental business in Nairobi City County had no effect on their performance. The study recommended that the research be carried out using moderating effect of the car hire business on influence of differentiation strategy on performance. Key words: Differentiation strategy, performance and car rental business CITATION: Demba, R. N., Ogal, V. O., & Muli, J. Effect of differentiation strategy on performance by selected car rental business, a case of Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 5(4), 1880-1895.