Abstract: The research looked at the relationship between Michael Porter’s generic strategies and performance of edible oil firms in Nairobi County and its environments. The objectives of the study were to determine the relationship between cost leadership strategy, differentiation strategy and focus strategy and performance of edible Oil firms in this region. The research also established and recommended the combination of generic strategies which can be adopted by these firms. The independent variables were cost leadership strategy, differentiation strategy and focus strategy. The study was undertaken in edible oil firms in Kenya and in particular those in Nairobi County and its environs. The research methodology entailed a descriptive research approach. The target population was managers, supervisors and heads of sections of the firms. A sample of 54 employees was drawn from the total population. The research used questionnaires as the data collection instruments. Data was analyzed with the help of statistical packages for social sciences. Correlation analysis was used to establish the relationship between the strategies and performance. Based on the findings of the study, there was a positive correlation between cost leadership and focus; and performance of vegetable oil firms and a negative correlation between differentiation and performance of vegetable oil firms. The study concluded that differentiation must be incorporated with other strategies in order to influence the performance of the firms.
Keywords: Generic Strategies, Cost Leadership, Differentiation Strategy, Focus Strategy.
Title: The Relationship between Michael Porter’s Generic Strategies and Performance of Edible Oil Firms in Kenya
Author: Nancy Wangui Maina, Margaret Oloko
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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