Generic Strategies and Performance of Selected Fashion Companies in Nairobi City County, Kenya
DOI:
https://doi.org/10.70619/vol4iss1pp1-15Keywords:
Generic strategies, cost leadership, differentiation, focus strategy and differentiation focus, performanceAbstract
The research aimed to determine how the performance of fashion companies affects generic strategies. Descriptive research methods were used to address the issue at hand as they relate to the fashion industry. Therefore, the target population of the study was 440 fashion firms that are operating in Nairobi Kenya. From each firm, 3 persons were selected who were the general manager, marketing manager, and finance manager were selected. The sample size was 108 managers of fashion companies in Nairobi City County who were selected using stratified random sampling. The key instrument for data collection was a semi-structured questionnaire. It analysed analyzed the data by computing descriptive statistics. Regressions were also examined. Statistical Package for Social Sciences (SPSS) software was used in data analysis. The information was shown using bar charts, pie charts, and frequency tables. The results showed that cost leadership strategy had a positive and significant effect on performance (β=0.241, p=0.006). Further outcomes showed that differentiation strategy had a positive and significant effect on performance (β=0.249, p=0.005). Outcomes further showed that focus strategy had a positive and significant effect on performance (β=0.298, p=0.001). Further outcomes showed that differentiation strategy had a positive and significant effect on performance (β=0.302, p=0.005). It is recommended for fashion companies to reduce their product prices to better cultivate customer loyalty. Fashion companies can also lower their prices to remain competitive in the market, which can help them do better overall. In the same sentence, most fashion companies may concentrate on regions with strong potential to boost performance. One of the instruments available to fashion companies for differentiating their goods and services is technology, which also lowers the cost of product diversification. Additionally, technology makes it easier for businesses to communicate with their target customers, which guarantees better service delivery methods as well as improved distribution and communication channels.
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