| dc.description.abstract | Strategic responses are known to realign firms to respond to the ever-changing turbulent
business environment. This research sought to assess the strategic responses of paint
manufacturing companies, in view of the intensity of rivalry of competition. The purpose
of the study was to determine the effect of firm’s strategic responses to the changing
competitive business environment on performance. The specific objectives were: To
analyze the effect of cost leadership strategy on company performance in the paint
manufacturing firms in Kenya, to assess the effect of product differentiation strategy on
company performance, and to investigate the effects of focus strategy on company
performance of paint manufacturing companies in Kenya. The study used a survey
design. The target population all the 44 paint companies in Kenya. However, a purposive
sampling was deemed necessary to select only those companies with relatively
formalized strategic planning systems. These were considered to be large companies with
permanent employees of size greater than 200, thereby creating a listing of 10 companies
that met the criteria. Therefore from a sampling frame of 2901, a sample size of 119 was
obtained from the selected companies. Data collected was analyzed using the Statistical
Package for Social Sciences (SPSS) computer program version 17.0. Descriptive
statistics used were the percentages while inferential statistics involved the use of
multiple regression analysis, correlation analysis and ANOVA. The regression and
correlation analyses showed that all the three responses positively related with
performance. However, the differences found among the strategic response effects could
not be confirmed statistically. This implied that the firms did not apply pure strategies but
used cost strategy as the basis on which other strategic responses are built with varying
levels of emphasis. Therefore the study concluded that the companies in the paint
manufacture sector studied applied mixed strategies with slight variations in the emphasis
accounting for the differences in their performance. Consequently the study made
recommendations that the companies need to find ways of increasing effects of niche
market leadership and product differentiation as a way of improving performance, to
increase research and development activities and human resource practices as these
efforts are likely to improve company innovation and therefore performance. Finally the
study suggests that further research be carried out regarding paint manufacturers can
identify and market segments in the industry so that they can improve their differentiation
and focus strategies. | en_US |
