Abstract: The basis for formulating competitive strategies is to comprehend the forces that shape competition in a particular industry. The most widely used structure to understand the competitive forces is based on Porter’s Five-Force model. The model provides an assessment of the elements within the contending forces that shape competition in the industry and determine firm strategy. The aim of this study was to apply the Porter’s Five Forces Model to analyze the performance of Kenya’s cement industry. The specific objectives were to evaluate the influence on performance by the following determinants; bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitutes and rivalry amongst competitors. A descriptive research design was adopted; data was collected with use of questionnaires with the respondents being the managers of the sampled cement firms listed at Nairobi Stock Exchange. The data obtained was analyzed using descriptive statistical analyses. The major findings of the study were that Porter’s (1980) five forces shaped competition in the cement industry to different degrees and affected the attractiveness and performance of the Kenyan cement industry. The implication of this study will go a long way to guide the cement industry in formulating competitive strategic objectives for the purpose of enhancing future performance and competitiveness in the industry.
Title: Application of Porter’s Five Forces Model on the Performance of Cement Industry in Kenya
Author: Sikujua Whelan Seboru, Dr. Wario Guyo
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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