The Effect of Competitive Strategy on the Performance of Bottled Water Producing Companies in Ethiopia
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Date
2023-06
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Addis Ababa University
Abstract
This research paper aims to examine the role of porter’s generic competitive strategies practices on the performance of bottled water producing companies in Ethiopia: The sample companies cover five top producers of bottled water manufacturing companies in Ethiopia: TOP water, Africa water, Arki water, Aqua addis water and Gold water. For a manufacturing company, the manufacturing function plays a fundamental role in its pursuit of competitiveness. . It is therefore critical to formulate an appropriate competitive strategy that will enable the manufacturing function to contribute to the company’s long-term competitiveness. This requires the alignment of the manufacturing strategy with the company’s competitive strategy. To address the research objective 176 sampled respondents were selected. To get reliable and sufficient information regarding companies’ competitive strategy practices and to easily contact respondents, purposive sampling technique was used, then, to select samples from the population in order to get the required sample size proportional sampling technique has been used. About 176 questionnaires were distributed; from which 152 sample respondents replied appropriately to the questionnaire. Data gathered were analyzed based on these 152 responses using SPSS 26 software package. Descriptive statistics and explanatory research approaches were employed. All outputs were presented using frequency, correlation and multiple linear regressions. The result indicates that cost leader ship strategy, differentiation strategy, and focus strategies were the major influencing strategies that determine and influence their firm performance. Among the strategies, focus strategy was the most statistically significant influencing strategy for their firm performance. The study recommended that the companies have to strive to reduce overall costs, to differentiate their products, to offer customers high-value added products and to increase conformance quality consistently in order to increase their market share and profitability, ultimately to stay viable
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Keywords
Generic competitive strategies, Firm performance