Abstract: This study is about the effect of competitive strategy on financial performance of manufacturing companies in Rwanda because, without effective competitive strategy manufacturing organization is bound to perform poorly since competitive strategy is a road map for the organization to follow. The researcher intend to achieve this by use of three specific objectives namely; to examine the effect of product differentiation strategy on financial performance of Bralirwa; to examine the effect of cost leadership strategy on financial performance of Bralirwa; to examine the effect of expansion strategy on financial performance of Bralirwa. The population size was 120 and sample of 52 respondents were taken. Both primary and secondary sources with their relevant tools like questionnaire and documentary analysis were used in order to come up with required data. Data was processed by use of SPSS and analyzed by use of percentages, mean and standard deviation. The relationship between the variables was established by use of Pearson correlations module. The tables of the findings explain how; Bralirwa has different competitive strategies like product differentiation strategy which make it differentiate its products according to the status of customers. Cost leadership strategy which consist of logistic technology which track its products movement and maintain product security, manufactures goods at a low cost, enterprise resource planning (ERP) technology which reduces cost, inventory management technique to reduce organization costs, and lastly the company has customer management system which reduces organization cost. Business focus strategy which consist of spreading products across the country, entering into franchise with other companies like Heineken and Coco-cola limited, opening its products to international market and lastly, introducing different product according to its different customers. Table 4.14 gave the relationship between competitive strategy and financial performance of Bralirwa whereby the respondents N is 52 and the significant level is 0.01, the results indicate that independent variable has Positive high correlation to dependent variable equal to. 907** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researchers conclude that variables are correlated. This means that there is a significant relationship between competitive strategy and financial performance of Bralirwa by 90.7.
Keywords: competitive strategy, financial performance, manufacturing companies, Rwanda, Bralirwa.
Title: EFFECT OF COMPETITIVE STRATEGY ON FINANCIAL PERFORMANCE OF MANUFACTURING COMPANIES IN RWANDA: A CASE OF BRALIRWA
Author: Innocent Tumwine, Dr. Kule Julius Warren, Dr. Mbabazi Mbabazize
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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