Competitive Strategies and Performance of Property Development Firms in Nairobi City County, Kenya

Abstract

The purpose of this study was to investigate the connection between competitive strategies and organizational performance in the property development industry in Nairobi, Kenya. The study's particular goals were to determine how organizational performance in Kenya's real estate development sector is impacted by differentiation, cost leadership, and focus strategies. The research design used was descriptive. The study's target demographic consisted of 55 companies that work in Nairobi County's real estate development industry. The quantitative data was examined using descriptive statistics such as mean and standard deviation. Regression and correlation analysis are examples of inferential statistics that were used to show the relationship between the variables. Findings indicated that differentiation strategy had a positive and significant effect with organizational performance of property development firms (β=0.279, p=0.001); cost leadership strategy had a positive and significant effect with organizational performance of property development firms (β =0.573, p=0.000); and focus strategy had a positive and significant effect with organizational performance of property development firms (β=0.213, p=0.004). The study concluded that increasing levels of differentiation lead to improvement in the performance of property development firms. Additionally, introducing new items and improving existing ones through innovation improved the performance of the property development company. The study concluded that Kenyan property development companies increase their operational scale, branch out into allied industries, and enhance their operational procedures to reduce expenses and improve performance. According to the study's findings, property development companies performed better when they increased their level of focus. Offering new items also increased sales, which improved organizational performance even further. To maintain dominant positions and long-lasting advantages until other businesses can copy the firm's distinctive features, which can still be regained by creating new opportunities and strategies that will create new barriers to market entry and another type of competitive advantage, property development companies' management should also continuously innovate. The study suggested that to better foster client loyalty, property development enterprises' management could lower the pricing of their products.