Determinants of Porter’s competitive strategy utilization among agro-dealers in Kenya

Abstract

Utilization of Porter’s competitive strategies is considered a crucial tactic in enhancing the competitiveness of small-scale agro-dealers in developing countries. The dynamic nature of the agro-dealer business environment further necessitates the businesses to strategically align themselves for survival sustainability. Despite the many benefits attributed to the utilization of Porter’s competitive strategies, there is limited empirical literature on the utilization of these strategies in agro-dealer enterprises in emerging economies. This study sought to analyze determinants of utilization of Porter’s competitive strategies using multivariate probit regression model among agro-dealers in Nakuru County, Kenya. Data were collected from 110 businesses using semi-structured questionnaires. Results indicated that age, experience, group membership, education, ownership structure, engagement in other businesses, business age, competitive rivalry, product substitution, operational costs and branding statistically influenced the choice of competitive strategies. Proper policy frameworks geared towards operational costs reduction, educating and training agro-dealers on the maximum utilization of competitive strategies should be implemented.

Keywords

• cost-leadership strategies
• differentiation strategies
• focus strategies
• diversification strategies
• promotions strategies