Assessment of Growth and Competitive Strategies Adopted In Out-Of-Home Food Outlets: A Case of Fast Food Restaurants in Nairobi
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Date
2012-05-01
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Publisher
Daystar University, School of Business and Economics.
Abstract
Defects in strategy application could be the reason why 56% of Small and Micro-Enterprises in Nairobi are either deteriorating or failing because of increased competition. This study was carried out to evaluate the characteristics of fast food restaurants in Nairobi, explore the growth and competitive strategies being pursued by fast food restaurants to attract and retain out-of-home food consumers and finally to assess the effectiveness of growth and competitive strategies in enhancing performance of fast food restaurants.From the target population of 1,200 fast food restaurants, a stratified random sample of 89 restaurants was selected for data collection and analysis. The study established that 52.7% of the fast food restaurants in Nairobi have been in business for less than three years with 92.8%operating for between 18 - 24 hours daily, the busiest period being 11am – 2pm. The study further found out that 56.4% of fast food restaurants advertized their businesses. Promotions are run by 58.2% of restaurants in Nairobi at least once every month. The age of the business, beta (0.476), t (1.939) and Sig. (0.07) was established to be the highest positive contributor to food pricing.It was also determined that the number of food items on the menu, beta (0.528), t (2.096) and Sig. (0.051) and the number of hours a business operated per day (beta 0.631), t (2.601)and Sig. (0.019) are the highest contributors to the revenues a business can generate daily. Product differentiation strategy through menu diversification, service differentiation strategy through outside catering and office deliveries, strategic positioning through locations offering high proximity to consuming public, customer relationship management strategy through advertizing and promotions and expansion through opening new outlets/franchising are the five strategies fast food restaurants in Nairobi should pursue in order to fairly price food items, increase customer base and increase revenues.
Description
Master of Business Administration - Thesis
Keywords
Growth and Competitive Strategies, Out-Of-Home Food Outlets, Fast Food Restaurants, Nairobi
Citation
Odoyo, C. O., (2012). Assessment of Growth and Competitive Strategies Adopted In Out-Of-Home Food Outlets: A Case of Fast Food Restaurants in Nairobi. Daystar University, School of Business and Economics, Nairobi