Differentiation Strategies and Organizational Performance of Firms Listed Under Manufacturing and Allied Sector at the Nairobi Securities Exchange

Abstract

This study evaluated the effects of product, service, and channel differentiation on the bottom lines of industrial and allied sector companies listed on the NSE. Using a descriptive research strategy, this study investigated the research topic at hand. Twenty-five managers or supervisors and workers from each of the eight industrial and allied Sector enterprises situated in Nairobi County were surveyed for this study. Yamane's method was used to calculate a sample size of 133 for this investigation from a population of 200, with a 95% confidence interval. The researcher utilized the questionnaire to gather primary data from the institution's management. The study results showed that most of the respondents agreed that product differentiation impacts on performance of firms listed under industrial and allied sector at the NSE. The study findings showed that product differentiation has a positive statistical beta coefficient. The study findings indicated that majority of the respondents agreed that service differentiation impacts on performance of firms listed under industrial and allied sector at the NSE. Service differentiation has a positive statistical beta coefficient. The results showed that most of the respondents were in agreement that channel differentiation impacts on performance of firms listed under industrial and allied sector at the NSE. Channel differentiation has a positive statistical beta. The study results indicated that majority of the respondents agreed that price differentiation affects performance of firms listed under industrial and allied sector at the NSE. Price differentiation has a positive statistical beta coefficient. The study recommended that the firms should consider costs in their production, outsource production to minimize costs and adopt the mechanization method to enhance efficiency in production. It was recommended that the firms consider costs and market conditions when pricing their products in order to improve performance and that that firms should use different distribution channels so that they could reach customers in different areas and improve their performance. The study recommended that the firms broaden their product offering, obtain certification for their products, and adopt innovation.