Abstract: The main objective of the study was to determine the effect of cost leadership strategy on the performance of pharmaceutical companies in Nairobi City County, Kenya. A descriptive research design was adopted in this study since it allows for analysis of different variables at the same time. The target population of the study was the 20 pharmaceutical companies in Nairobi City County where 60 respondents comprising the chief executive officers (CEOs), operating managers and marketing managers were targeted. The study used stratified simple random sampling technique where 36 respondents were targeted. The study used closed ended questionnaires as instruments for data collection primary data. Descriptive statistics was used to analyze the primary data of quantitative nature. The results of the analysis was organized, summarized and presented using tables. Inferential statistics such as Pearson correlation and multiple regression were applied to make conclusions. The study targeted a sample size of 36 respondents from which 34 filled in and returned the questionnaires making a response rate of 94.4%. The study concluded that cost leadership affects performance of pharmaceutical companies. This study recommends that pharmaceutical companies should embrace and invest in cost leadership strategies most especially forming linkages with suppliers and involvement of the stakeholders since it will enable them achieve competitive advantage.
Keywords: Cost Leadership, Strategy, Performance, Pharmaceutical Companies.
Title: Effect of Cost Leadership Strategies on Performance of Pharmaceutical Companies in Nairobi City County, Kenya
Author: Angela Waithira Njaaga, Dr. Mary Ragui
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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