Abstract: Over the last three decades, competitive strategy has been shown to involve offering product or service perceived as unique by the consumers. Completive strategy can be based on many dimensions such as low price, innovativeness, product quality, efficiency, branding among others. Although studies have shown that competitive strategies positively relates to firm’s performance, it’s not all organizations including hotels that have realize this potential in regards to increased performance. The purpose of this study was to establish the influence of competitive strategies on performance of hotels in Rwanda. The study was carried out in Kigali Marriot hotel in Kigali, Rwanda. This study employed descriptive research design. Target population was 130 employees of the hotel. A sample size of 98 employees was selected for the study. Stratified random sampling technique was used to select the samples. The study used primary data which was collected using questionnaires. Data was collected using questionnaire as the research which was distributed to the respondents by the researcher herself. The collected data was thoroughly examined and checked for completeness. The data was summarized, coded to enhance analysis using statistical package for social science (SPSS). Descriptive statistics frequencies and percentages was used to analyze the data. Correlation was used to portray the relationship between performance and competitive strategies. Regression analysis was used to determine the influence of competitive strategy on hotel performance. Data presentation was done by the use of pie charts and graphs, percentages and frequency tables for easy of understanding and interpretations. The results indicate that hotel in Rwanda have largely adopted competitive strategies in order to compete in the market place. The findings of the study revealed that cost leadership, differentiation and focus strategies have positive significant relationship with hotel performance in Rwanda However, differentiation strategy had a higher coefficient of determination meaning that, it had the greatest effect on firm performance. Moreover, as opposed to Porter’s argument that a firm can achieve a higher level of performance over its rival by either being a cost leader or by supplying differentiated product or service, the hotel industry in Rwanda combined their strategies into cost minimization, product differentiation and focus simultaneously while others chose any of the three strategies. It is also recommended that these firms pay more attention to competitive intensity and adopt other ways of coping with challenges presented by external environment. The study further recommends the need to strengthen this study via a longitudinal study and compare the performance of different categories of businesses as well. The implications from the findings point to a configuration approach on the implementation of competitive strategies by hotels in Rwanda. Hotels that intend to implement a competitive strategy should evaluate the environment to make sure they gain appropriate fit between the strategy and the environment in order to achieve competitive advantage.
Keywords: Cost leadership Strategies, Performance of hotels in Rwanda.
Title: INFLUENCE OF COMPETITIVE STRATEGIES ON PERFORMANCE OF HOTELS INDUSTRY IN RWANDA: A CASE STUDY OF KIGALI MARRIOTT HOTEL
Author: SCHOLASTIQUE RWEMALIKA, Dr. PATRICK MULYUNGI, Dr. JAYA SHUKLA
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
