Market Focus Competitive Strategy and Profitability of Agrochemical Companies in Kenya: A Case of Ultravetis East Africa Limited

  • Phyllis Roimen The Catholic University of Eastern Africa
  • Dr. Abraham Kiflemariam The Catholic University of Eastern Africa
  • Dr. Susan Wasike The Catholic University of Eastern Africa

Abstract

The aim of this study was to establish the influence of market focus competitive strategy on profitability of agrochemical companies in Kenya: A Case of Ultravetis East Africa Limited. The study was guided by the following objectives; to establish the effect of focus product development on profitability of Ultravetis East Africa Limited, to establish the effect of focus marketing precision on profitability of Ultravetis East Africa Limited, to determine the effect of focus customer service delivery on profitability of Ultravetis East Africa Limited and to establish the effect of focus brand dominance on profitability of Ultravetis East Africa Limited. This study was informed by; Michael Porter’s Competitive Forces Theory, Theory of Dynamic capabilities and Mathematical Theory of Games.

Agro-chemical firms in Kenya have been facing a number of challenges due intense competition and entry of common and related companies from China and India thus resulting in decline in profitability per year. The study adopted a longitudinal research design. Stratified random sampling was used to sample 126 Professional staff while purposive sampling approach was used for managers and supervisors. The study used structured questionnaires to collect primary data. The collected data was analyzed using SPSS. Analysis included descriptive and inferential statistics. The specific descriptive statistics were mean, standard deviation and percentages, while inferential included correlation and regression. A multivariate regression model was used to show the relationship between the independent variables to the dependent variable.

The findings revealed that focus product development and profitability are positively and significantly related (β =.211, p=0.000), focus marketing precision and profitability were positively and significantly related (β =.442, p=0.000). In addition, results showed that focus customer service and profitability were positively but insignificantly related (β =.021 p=0.717). Similarly, the results showed that focus brand dominance and profitability were positively and significantly related (β =.258 p=0.000). Based on the findings the study concluded that, the four focus competitive strategies used in the study had influence on the profitability of Ultravetis East Africa Limited. The study therefore recommended that, the managements of agrochemical companies should adopt the most effective focus competitive strategies if they want to have competitive advantage over their rivals.

Key Words: Market focus, Competitive, Strategy, Product development, Customer Service, Profitability

Author Biographies

Phyllis Roimen, The Catholic University of Eastern Africa

Graduate Student

Dr. Abraham Kiflemariam, The Catholic University of Eastern Africa

Lecturer

Dr. Susan Wasike, The Catholic University of Eastern Africa

Lecturer

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Published
2019-08-30
How to Cite
Roimen, P., Kiflemariam, D. A., & Wasike, D. S. (2019). Market Focus Competitive Strategy and Profitability of Agrochemical Companies in Kenya: A Case of Ultravetis East Africa Limited. Journal of Strategic Management, 3(3), 1-30. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-strategic-management/article/view/323
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Articles