Effects of strategic positioning on Firms performance: A case of Animal Feed Manufacturing Firms in Central, Rift Valley and Western Kenya

Abstract

Strategic positioning of firms includes the devising of the desired future position of the firm on the basis of present and foreseeable developments, and the making of plans to realize that positioning. Strategic positioning is vital in ensuring the continuity of a firm. In Kenya, newly established manufacturing firms are currently facing major challenges to survive in this highly vibrant industry. There are increased levels of competition in the local animal feed manufacturing firms hence low diminishing market shares. The main objective of this study was to investigate the effects of strategic positioning on firms performance of animal feed manufacturing firms within Central, Rift Valley and Western Kenya Region. The Specific objectives were; to examine the effects of low cost on firm’s performance, to establish the effects of market focus on firm’s performance, to determine the effects of differentiation on firm’s performance. The resource based view model was used as the theoretical foundation of the study. The study adopted an explanatory research design and was guided by Resource based View theory. The study targeted96animal feed manufacturing firms in Central, Rift Valley and Western Kenya Region and a census method was employed. Primary data was collected through self-administeredquestionnaires. Multiple regression analysis technique was used to analyze and test hypothesis. Results indicated that cost leadership and differentiation strategy has a significant and positive effect on firm performance. However, market focus strategy has no significant effect on firm performance. The study concludes that firms should utilize advanced manufacturing technologies to lower production costs, to take a step further to properly understand target customers and, existing and potential competitors as well as the inter-functional coordination of firm resources and activities, renew product and product designs and employ strategies to enhance brand image. In addition to that, observe economies of scale while sourcing raw materials develop new unique products, invest in product quality control measures and brand products. The study recommends that future researchers should strive to assess the role of strategic positioning on revenue generation of animal feed manufacturing firms in selected counties in Kenya.