Understanding Growth Strategies and Performance: Empirical Investigation of Cement Manufacturing Firms in Kenya

Roselyne Kavata Munyasya^1, and Stephen M. A. Muathe¹

¹Kenyatta University

Cite this paper:
Roselyne Kavata Munyasya and Stephen M. A. Muathe. Understanding Growth Strategies and Performance: Empirical Investigation of Cement Manufacturing Firms in Kenya. International Journal of Econometrics and Financial Management. 2023; 11(1):13-22. doi: 10.12691/ijefm-11-1-2

Abstract

The Manufacturing Sector of Kenya is a key pillar towards attaining the country’s Vision 2030. Despite the good progress in the infrastructure sector, this is not the case with the domestic cement manufacturing companies since all listed firms have seen a fluctuation in profit loss. As a result, the study investigated how growth strategies affect the performance of Kenya cement manufacturing companies. The study adopted a descriptive research design. The target population was 159 managers from eight cement manufacturing firms in Kenya. Data was collected using questionnaires and analyzed using descriptive and inferential statistics. The findings indicated that market penetration, product development, and diversification positively and significantly influenced Cement manufacturing companies' performance. The study concluded that growth strategies contribute significantly to the performance of cement manufacturing companies. The management of cement companies should invest in training employees to provide the best customer service, invest more in research and development, and have a portfolio of product development strategies. The marketing team should be innovative in developing products that meet the changing demands of customer preferences. The management of cement companies should intensify the use of a diversification strategy to achieve higher margins than their existing products.

Keywords:
market penetration market development product development diversification performance Balanced Scorecard Theory Kenya

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