THE EFFECT OF GROWTH STRATEGIES ON THE COMPETITIVENESS OF TOUR OPERATOR FIRMS IN NAIROBI CITY COUNTY, KENYA

Abstract

This study sought to determine the effect of growth strategies on the competitiveness of tour operator firms in Nairobi City County. The study was guided by the following specific objectives: to determine the effect of market penetration on the competitiveness of tour operator firms in Nairobi City County; to ascertain the effect of Market development on the
competitiveness of tour operator firms in Nairobi City County; to find out the effect of product development on the competitiveness of tour operator firms in Nairobi City County; and to establish the effect with which diversification affects the competitiveness tour operator firms in Nairobi City County. The theories that informed this study are Porter’s theory of Competitive advantage, Dynamic capabilities theory, Resource based theory and Modern Portfolio theory. The target population for this study was 51 tour operating firms in Nairobi County. The unit of observation was 153 management level employees from top, middle and functional levels. Therefore, the Census approach was applied in selecting the sample for this study this the target population is less than 200. Questionnaire was used for data collection. Administration of the questionnaires was done by the research assistant using the drop and pick later techniques. The study used a total of 15 individuals in the pilot test. Quantitative data collected was analyzed using descriptive statistics techniques such as means, standard deviation, frequencies and percentages. SPSS version 23 was used to analyze the quantitative data. Qualitative data was analyzed using content analysis and presented in prose form. The study also analyzed the data using inferential statistics which include correlation and regression analysis. The study concludes that market penetration strategy has a positive and significant influence on the competitiveness
of tour operator firms in Nairobi City County, Kenya. In addition, the study concludes that market development strategy has a positive and significant influence on the competitiveness of tour operator firms in Nairobi City County, Kenya. Further, the study concludes that product development strategy has a positive and significant influence on the competitiveness of tour operator firms in Nairobi City County, Kenya. The study also concludes that diversification strategy has a positive and significant influence on the competitiveness of tour operator firms in Nairobi City County, Kenya. From the results, this study recommends that the management of tour operator firms should formulate and implement effective market penetration plan to facilitate the competitiveness of tour operator firms. In addition, the management should put into consideration concentric diversification and conglomerate diversification.
Key Words: growth strategies, competitiveness, market penetration, Market development, product development, diversification