Effect of Product Development Strategy on Performance in Sugar Industry in Kenya

Abstract

The purpose of this research was to examine empirically the effects of new product development strategy on company performance. To do so, two indicators of product development strategy which include development of new product and improvement of existing products were considered as independent variable indicators while performance measures were total output turnover, profitability, sales quantities and capacity utilization. The sugar industry in Kenya was chosen as the empirical context for the present study's analysis largely because of its crucial role in agriculture subsector. Consistent with the study's hypothesis, this study's results show that introduction of other new products other than sugar has largely been minimal while improvement of existing products has adopted through packaging and branding. Resultant performance was positive in total output turnover, sugar sales quantities, capacity utilization was moderate while profitability after tax gave fluctuating results. Performance was fairly responsive to improvement of product processes procedures but poor in introduction of new products since actualization is yet to be realized. Implication aspect of this study's results depicts the crucial need of actualization of new products to the consumer and to exhaustively factory capacities. Introduction of current technologies though been effected by some companies is promising to be a key in investment both for high, diverse production and cheaper with minimum wastage. Present day's managers in effect should take care to build reasonable and realistic expectations about potential new products that are compatible with the current sugar production processes.

Strategic Management Capabilities and Performance of Pharmaceutical Companies in Nairobi City County, Kenya

“…The participants agreed strongly that design capabilities positively influence organizational performance and Propensity to purchase a product and perceived quality are influenced by product form as displayed by the 4.60 and 4.51 means respectively and respective SD of 0.40 and 0.49. This concurs with Mbithi, Muturi and Rambo (2015) who looked at how the Kenyan sugar industry's performance is affected by product design capability and the findings indicated that other than sugar, introducing any other new product was hugely minimal while branding and packaging was adopted to improve the current products.…”

The mediating effect of strategy on entrepreneurial orientation and performance

“…The market development strategy has a significant predictive effect on performance through sales volume, primarily when the company pursues market access in new geographic areas. Thus, expanding into new market segments that involve capturing consumers who previously did not use the product can affect company capacity and sales volume (Mbithi et al , 2015). Jose Mas-Ruiz et al (2002) recommend a concentration strategy in external expansion by emphasizing that large market shares in several vital markets generate long-term benefits.…”

Influence of Strategy Implementation on the Performance of Private Universities in Kenya. A Survey of Universities in Nairobi County, Kenya

“…According to Mbithi et al, (2016), new services or programs or product are helpful to the financial health of universities. Universities must keep on coming up with new products since with time the programs are adopted by other universities therefore profitability cannot be sustained for a longer period of time (Ayuya, 2015).…”

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