Effect of Competitive Strategies on Organizational Performance of Private Primary Schools in Embakasi Subcounty , Nairobi , Kenya

Abstract

Competitive strategies are measures that an organization puts in place in order to remain relevant in a competitive environment. These strategies are cost reduction, differentiation and focus strategy. These strategies give an organization a competitive advantage if they are applied well in the running of day to day activities of the organization. The general purpose of this study was to investigate the competitive strategies affecting the organizational performance of private primary schools in Embakasi sub-county, Nairobi, Kenya. The objectives of the study were to examine the effect of cost reduction strategy on organizational performance, to determine the effect of differentiation strategy on organizational performance, and to examine the effect of focus strategy on organizational performance. The study used a descriptive research design. Data was collected by the use of questionnaires. Sampling was done by the use of stratified random sampling method since the population was not uniformly distributed across all the strata where 40 private schools were selected and 3 respondents from each school making a total of 120 respondents. Data was analysed by use of multiple regression analysis to determine the effect of competitive strategies on the organizational performance of private primary schools in Embakasi sub-county, Nairobi, Kenya. Responses from the questionnaires were tabulated, coded and processed by the use of Statistical Package for Social Science (SPSS) software and then analysed by use of descriptive statistics which include means, frequency distributions, percentages, and standard deviations. The study found out that the schools draw a budget for the full year, issue annual fee guidelines, charge moderately higher fee compared to other schools, hire external auditor services each year and outsource some services. The study also revealed that the schools had distinguished logo colours and values, the calibre of the teachers was excellent, they had adopted technology in their operations, they had a well-distinguished website and had a billboard placed in a strategic location. The study concluded that private primary schools in Embakasi sub-county of Nairobi County use a number of competitive strategies such as; benchmarking for best practices in the education sector; recruitment of highly skilled teachers; and having in place a clear vision that the school pursues and the schools agreed that their performance is generally good and attributed their performance to the competitive strategies adopted by their industry. The study recommends that they should apply differentiation strategy more aggressively by developing aspects of integrated marketing. These would include branding and positioning as key strategies of service differentiation. It is recommended that private primary schools should constantly evaluate their strategies with an aim of staying ahead of the competition. The study further recommends that head teachers should be at the forefront in strategic planning to lead the school into incremental improvement by streamlining the non-value added functions.