INDUSTRY COMPETITIVENESS AND ITS EFFECT ON PERFORMANCE OF SOFT DRINKS MANUFACTURING FIRMS IN KENYA: AN EMPIRICAL ANALYSIS
Abstract
Purpose of Study: The study assessed the extent to which industry competitiveness affects performance of soft drinks manufacturing firms in Kenya.
Problem Statement: Nairobi Bottlers, despite using depots and sub-depots for distribution, continues to face frequent stock-outs and delays. These challenges, linked to weak service timelines, limited product availability, and reduced flexibility, undermine customer satisfaction. As a result, the company has lost part of its market share despite being an affiliate of Coca-Cola East Africa.
Methodology: Target population was 2345 people who include distribution department, whole sellers as well as retailers in the company. The study used stratified sampling technique to select groups of its subjects. Simple random sampling method was then used to select a sample size of 341 respondents. A pilot test was conducted to ensure validity and reliability of the data collection instrument. Data analysis was done using descriptive as well as inferential statistics. This was done via Statistical Package for Social Sciences (SPSS).
Result: Industry competitiveness had a positive and significant influence on the performance of Nairobi Bottlers in Kenya (β =.206, p=.000<.05).
Conclusion: The study concludes that through competition, the company has come up with new products which are capable of providing end users with a greater selection. Industry competitiveness therefore ensures companies come up with products that are attractive and have quality for them to be competitive.
Recommendation: Nairobi bottlers’ management should also train their staff further on impact of distribution logistics on performance of the company. This is to enable them achieve effective means of ensuring industry competitiveness and hence increase further the performance of the company.
Keywords: Industry competitiveness, Firm Performance, Soft Drinks Industry, Resource-Based View Theory, Nairobi Bottlers Company
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