Porter’s Generic Strategies and Market Share Growth of Skol Brewery Ltd in Rwanda

2021 ◽  
Vol 5 (4) ◽  
pp. 45-56
Author(s):  
Frederic Karangirwa ◽  
◽  
Eugenia Nkechi Irechukwu ◽  
Keyword(s):  
Market Share ◽  
Quantitative Data ◽  
Profit Margin ◽  
Reputation Management ◽  
Cost Leadership ◽  
Positive Correlation ◽  
Market Focus ◽  
Focus Strategy ◽  
Generic Strategies ◽  
Porter's Generic Strategies

The purpose of this study was to examine porter’s generic strategies and market share growth of Skol Brewery in Rwanda. The specific objectives were to: determine effect of cost leadership, differentiation, and market focus on market share growth of Skol Brewery in Rwanda. The target population consists of 287 staff members of Skol Brewery Ltd. The study used simple random and purposive sampling techniques to select a sample of 167 employees. Quantitative data was obtained using questionnaire while a documentary checklist was used to obtain secondary data. Descriptive and inferential statistics were used for quantitative data analysis while content analysis was used for qualitative analysis. Results on cost leadership show a tight cost in all business activities (mean of 4.333), economies of scale (mean of 3.666), and efficient cost saving for designs (means of 4.000) and effective operational cost reduction (mean of 3.666) were used as a cost leadership component. A positive correlation was found between cost leadership and sales (r=231**, p=0.006), investment rise (r=.159**, p=0.043) and profit margin (r=.174**=0.014).Results on differentiation felt that cost allocated to the control of quality of goods and services (mean of 4.333), effort in reputation management (mean of 4.000), names (mean of 4.833). A positive correlation was between differentiation and sales (r=.274**, p=0.039), investment rise (r=.187, p=0.035) and profit margin (r=.324, p=0.032).Results on market focus found that marketing specification for products (mean of 3.833) is the measurement that has the highest level of application. A positive correlation was between market focus strategy and sales (r=.854**, p=0.018), investment (r=.873**, p=0.035) and profit margin (r=.750**, p=.0.036). The study concludes that there is no significant relationship between porter strategies and market share growth. The study recommends that management of the brewery company should evaluate implementation of cost leadership, conduct a study on market focus to respond to market niches as any gap in customer centric products would yield customer non responsiveness, benchmark differentiation, and hire competent staff to achieve its success. Keywords: Porter’s Generic Strategies, Cost Leadership Strategy, Differentiation Strategy, Market Focus Strategy, Market Share Growth

scholarly journals Porter’s Generic Strategies and Performance of Selected Automotive Firms in Nairobi City County, Kenya

2020 ◽  
Vol 2 (2) ◽  
pp. 49-63
Author(s):  
Louisa Kabure ◽  
Mary Ragui
Keyword(s):  
Correlation Coefficient ◽  
Automotive Industry ◽  
Organization Performance ◽  
Sales Growth ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
The Government ◽  
Focus Strategy ◽  
Generic Strategies ◽  
Porter's Generic Strategies

Every firm operating in a dynamic and competitive environment must employ competitive strategies in order to enhance performance and remain relevant to the market. The automotive industry in Kenya has experienced shifts within the last couple of years that have disadvantaged automotive firms’ sales and this despite adequate capacity to supply local demand. Consequently, a persistent decline in volume sales has negatively impacted performance of these firms in overall, reducing competition to price wars that are not a viable option in the long run. This study therefore, sought to investigate the effect of Porter’s generic strategies on performance of selected automotive firms in Nairobi City County, Kenya. The specific objectives of the study were; to determine the effect of cost leadership strategy on the performance of selected automotive firms in Nairobi county, Kenya, to investigate the effect of differentiation strategy on the performance of selected automotive firms in Nairobi county, Kenya and to establish the effect of focus strategy on the performance of selected automotive firms in Nairobi county, Kenya. The scope entailed a study of selected new vehicle firms in the automotive industry in Nairobi County, Kenya. The study was anchored on three theories that included the market based view, the resource based view of the firm and Porter’s diamond theory of national advantage. Descriptive research design was adopted. The study used simple random sampling to attain the sample size and data was collected through drop and pick method using semi structured questionnaires. To ensure reliability in the questionnaire, Cronbach’s alpha correlation coefficient was used where a level of above 0.7 confirmed internal consistency. Pilot testing was done on ten respondents and Pearson’s product correlation coefficient was used to check for correlation between the study variables. A multivariate regression model was used to determine the relative importance of each variable to the study. Data collected was presented in graphs, tables and charts and a conclusion of the study drawn. The study revealed that cost leadership was significant in influencing the organizations’ performance. The study also revealed that differentiation affected their organizations’ performance to a great extent. The study also revealed that the focus strategy improved the sales growth in the firms thereby resulting to overall organization performance. The study concluded that cost leadership was significant in influencing the organizations’ performance. The study also concluded that differentiation affected their organizations’ performance to a great extent. The study also concluded that the focus strategy improved the sales growth in the firms thereby resulting to overall organization performance. The study recommended that the government and other policy makers come up with policies and regulations meant to foster innovation in the automotive industry. Policies should also be put in place meant for the creation of an enabling environment for fair and market driven competition to take place. The study recommended that the management of the automotive firms should often review their pricing structures and be geared towards minimizing their operational costs so as to offer cost friendly vehicles to the clients. The study also recommended that the firms’ management ensure they develop quality vehicles and embrace differentiation strategy so as to remain competitive in the market. The study also recommended that the management fully adopt the focus strategy to help in improving the sales growth in the firms thereby resulting to overall organization performance as well as improving on the product innovation which would lead to improved market share.

PORTER'S GENERIC STRATEGIES AND FIRM PERFORMANCE IN PETROLEUM MARKETING COMPANIES: A CASE STUDY OF VIVO ENERGY, NAIROBI, KENYA

2021 ◽  
pp. 98-112
Author(s):  
Novah Omboga ◽  
Paul Machoka
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Cost Leadership ◽  
Leadership Strategy ◽  
Focus Strategy ◽  
Generic Strategies ◽  
The Relationship ◽  
Porter's Generic Strategies ◽  
Cost Leadership Strategy

ABSTRACT The main objective of the study was to establish the influence of Porter's generic strategies and firm performance in petroleum marketing companies using Vivo Energy Limited as a case study. The business environment in emerging economies has witnessed intense competition among firms. Petroleum marketing companies in Kenya have had to face such conditions in a competitive environment prompting the firms to develop strategies that match their capabilities to market demands. The specific objectives of the study were: to examine how leadership cost strategy and; focus strategy affect the firm performance of Vivo Energy Limited. The study was premised on the; resource-based view, competitive advantage and contingency theories. This study adopted a descriptive research design. The target population was 237 employees at Vivo Energy Limited. Stratified proportion sampling was used to obtain a sample of 108 respondents. Questionnaires were used for data collection. Data was analyzed using descriptive and inferential statistics to determine the relationship between the study variables. Pearson correlation analysis was carried out to establish the relationship between dependent and independent variables. The analysis of variance (ANOVA) was checked to reveal the overall model significance. The study established that there was a positive relationship between the cost leadership strategy and firm performance. Analysis also revealed that focus strategy had a substantial positive correlation, establishing that focus strategy and firm performance are fundamentally related, and that the variation in firm performance can be explained by a unit change in focus strategy. The study recommended that the management of Vivo Energy Limited should adopt cost leadership strategy that is focused on gaining competitive advantage byselling their products at average prices to earn higher profits than competitors in the sector or below the average industry prices to gain market share. It also recommends that Vivo Energy should consider employing focus strategies that are concentrated on narrow segment aimed at achieving cost advantage or differentiation. Keyword: Cost leadership, Firm Performance, Focus strategy, Generic Strategies

scholarly journals Porter's Generic Strategies: An Exploratory Study of Their Use In Japan

1970 ◽  
Vol 24 (1) ◽  
pp. 69-90
Author(s):  
Richard Allen ◽  
Marilyn Helms ◽  
Margaret Takeda ◽  
Charles White
Keyword(s):  
Exploratory Study ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Japanese Firms ◽  
Leadership Strategy ◽  
Japanese Companies ◽  
Focus Strategy ◽  
Generic Strategies ◽  
Porter's Generic Strategies ◽  
Cost Leadership Strategy

While the use of Porter's generic strategies have been well documented inAmerica and Europe, no studies have assessed their use in Japan. This researchinvestigates if Japanese companies are indeed following Porter's genericstrategies or continuing to follow more traditional "Japanese" managementstrategies. Using a survey to operationalize Porter's generic strategies, Japanesemanagers were questioned about their firm's current strategic practices. Afactor analysis revealed Japanese firms are following only two strategies thatcould be identified as those of Porter. A cost leadership strategy was the mostfrequently used strategy, and the differentiation strategy was used the least.There was no evidence of organizations using a focus strategy. Interestingly,two additional strategies emerged that did not fit Porter's research but are inline with traditional Japanese strategies including a supply chain focus and atraining based strategy.

Insights Between Environmental Scanning Activities and Porter's Generic Strategies: An Empirical Analysis

1992 ◽  
Vol 18 (4) ◽  
pp. 791-803 ◽  
Author(s):  
Daniel F. Jennings ◽  
James R. Lumpkin
Keyword(s):  
Environmental Scanning ◽  
Chief Executives ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Different Types ◽  
Customer Attitudes ◽  
Generic Strategies ◽  
Porter's Generic Strategies ◽  
Cost Leadership Strategy

This study explored the relationships between the environmental scanning activities of chief executives from a single industry and their organizations' strategies, on the premise that executives employing different types of Porter's generic business-level strategies would use different scanning activities. There were differences in the strategy-scanning linkages. Specifically there are indications that firms with a differentiation strategy tend to employ a scanning activity that places more importance on evaluating opportunities and customer attitudes. Firms with a cost leadership strategy tend to use a scanning activity that evaluates competitive threats and tracks the policies and tactics of competitors.

scholarly journals How do learning orientation and strategy yield innovativeness and superior firm performance?

2014 ◽  
Vol 45 (2) ◽  
pp. 35-50 ◽  
Author(s):  
M. Dülger ◽  
G. Alpay ◽  
C. Yılmaz ◽  
M. Bodur
Keyword(s):  
Firm Performance ◽  
Outcome Variable ◽  
Product Innovativeness ◽  
Differentiation Strategy ◽  
And Performance ◽  
Focus Strategy ◽  
Generic Strategies ◽  
Porter's Generic Strategies ◽  
Eventual Outcome

This paper attempts to shed light on the role of learning orientations of firms and their adoption of Porter’s generic strategies on four dependent variables: Behavioral innovativeness, product innovativeness, technological innovativeness and, ultimately, firm performance. Hierarchical regressions were run with data from a random sample of 121 firms operating in Turkey. Findings indicate that internally-focused learning, market-focused learning and differentiation strategy have significant effects on the three innovativeness dimensions. When firm performance is included as the eventual outcome variable into the analysis, internally-focused learning, focus strategy and product innovativeness emerge as its main predictors. In fast-paced, highly unpredictable market environments, managers can make use of these findings to their benefit in terms of elevating their firms’ innovativeness and performance levels.

scholarly journals Testing The Applicability of Porter's Generic Strategies In The Digital Age: A Study of Korean Cyber Malls

1970 ◽  
Vol 21 (1) ◽  
pp. 19-46
Author(s):  
Eonsoo Kim ◽  
Dae-il Nam ◽  
J. L. Stimpert
Keyword(s):  
Physical Space ◽  
Digital Age ◽  
Superior Performance ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Performance Differences ◽  
Leadership Strategy ◽  
Generic Strategy ◽  
Generic Strategies ◽  
Porter's Generic Strategies

Although traditional strategic management theory evolved in the context ofbrick and mortar firms operating in a physical space, we propose that Porter's(1980) generic strategy framework is still applicable, albeit in need of somemodification, to competition in the digital age. This study tests that assertionin a sample of Korean online shopping malls. In particular, it explores the followingresearch question: Do Porter's (1980) generic strategies explain performancedifferences across business-to-consumer (B2C) firms?Our results suggest that Porter's generic strategies are applicable to e-businessand that they indeed explain performance differences across firms.Contrary to conventional wisdom, but consistent with the logic of business inthe digital realm, the cost leadership strategy exhibited the lowest performance.Firms pursuing a hybrid cost leadership/differentiation strategy exhibited thehighest performance. Interestingly, when a sub-sample of all firms pursuing thehybrid strategy was analyzed for performance differences by firm type (pureplays vs. clicks-and-bricks), pure plays exhibited superior performance. Ourfindings suggest that cost leadership and differentiation can be combined at thesame time, and must be combined to be successful in e-business.

scholarly journals Proliferation of Market Share of Hydraulic Excavators and Wheel Loaders in the Stone Crusher Segment by Strategic Decisions

2020 ◽  
Vol 9 (1) ◽  
pp. 947-951
Keyword(s):  
Market Share ◽  
Action Plan ◽  
Mining Industry ◽  
Marketing Strategies ◽  
Strategic Decisions ◽  
Construction Companies ◽  
Hydraulic Excavators ◽  
Wheel Loaders ◽  
Generic Strategies ◽  
Porter's Generic Strategies

In today's business scenario, technology plays an important role in any industry. Construction Equipment and the mining industry play a major role in the success of any developing country. These machines and crushers facilitated the construction companies with equipment and material for completion of major government projects such as the Kaleswaram Lift irrigation scheme project evaluating 1.2 Lakh crores and ongoing projects like Polavaram project with 48 open gates. In this paper, end to end survey has been implemented by deliberate fieldwork to stone crushers and quarries with a questionnaire analyzing the technical disparities of machines, premium and non-premium market share and various mining industries in Stone crushers segment. The calculations of the data collected have been graphically represented. The paper also gives a detailed view of the marketing strategies to be adopted for the sale of Excavators and Wheel Loaders in stone crushers. In this study, the sale of Excavators and Wheel loaders at different locations of Telangana state has been investigated and optimized. The data collected from different districts were analyzed using Porter's Generic strategies and an action plan is derived which will be used to enhance the market share of the company.

Pengaruh Hukum terhadap Lima Kekuatan Persaingan Terkait dengan Perumusan Strategi Bersaing Menurut Michael E. Porter

2021 ◽  
Vol 12 (1) ◽  
pp. 51-66
Author(s):  
Nugraha Pranadita ◽  
Ratih Hurriyati ◽  
Puspo Dewi Dirgantari
Keyword(s):  
Competitive Advantage ◽  
Business Performance ◽  
Warning System ◽  
Secondary Data ◽  
Cost Leadership ◽  
Industry Competition ◽  
The One ◽  
Generic Strategies ◽  
Competitive Forces ◽  
Laws And Regulations

There are five competitive forces that influence the Industry. Industry competition affects business performance, so companies must adapt to changing environments to maintain a competitive position. One of the ways to win the competition is to use a strategy. Strategy allows organizations to gain a competitive advantage from three different foundations namely: cost leadership, differentiation and focus. Strategic planning can help to develop an early warning system to avoid threats or develop strategies that can turn threats into profits for the company. Thus the strategy can maximize competitive advantage on the one hand, and can minimize the limitations of competing. The question is; How do laws and regulations affect Porter's five competitive forces and the three generic strategies? This research is a qualitative analytical descriptive study using secondary data, and the unit of analysis is the prevailing laws and regulations in Indonesia. The results of this study; consistently statutory regulations (laws) influence the five competitive forces and three generic strategies put forward by Porter.

scholarly journals Analysis of Porter’s Generic Strategies in Enhancing Competitiveness in Retail Industry (A Survey on Pajajaran Sindangkasih Minimarket, Ciamis)

2019 ◽  
Vol 15 (3) ◽  
pp. 175-184
Author(s):  
Yogi Sugiarto Maulana ◽  
◽  
Andri Helmi Munawar ◽  
Dara Siti Nurjanah ◽  
◽  
...  
Keyword(s):  
Retail Industry ◽  
Generic Strategies ◽  
Porter's Generic Strategies
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