Market Penetration Strategy and Performance of Agrochemical Companies in Nakuru County, Kenya
Abstract
The performance of the agrochemical industry in Kenya is of paramount importance to the agricultural sector because agriculture is the mainstay of Kenya’s economy. This study sought to investigate the effect of market penetration strategies on performance of agrochemical companies in Nakuru County, Kenya. The study employed a descriptive survey design. The target population was 20 agrochemical companies operating in Nakuru County. The study employed a census survey and purposive sampling was used to select 60 senior management. Self-administered questionnaires were used to collect data after being pretested for reliability and validity and found to meet the acceptable Cronbach’s alpha value. Data analysis included both descriptive and inferential analyses. Simple regression analysis showed that market penetration strategy had a positive and statistically significant relationship with the performance of agrochemical companies. The findings of this study are significant to managers, scholars and government. To the managers, the findings reveal market penetration strategies influence the performance of their agrochemical companies. For the government the findings reveal the need to develop policies that will support the market penetration strategy adopted by agrochemical companies because they affect their performance. For scholars, the findings contribute to further understanding of the effect of market penetration strategy on firm performance. This study concludes that market penetration strategy is the most important predictor of performance of agrochemical companies. This study finally recommends that future studies could be carried out in other counties and different industries such as banking and manufacturing to compare the findings in this study.
Keywords: Market Penetration, Firm Performance, Agrochemical Companies, Internal Growth Strategies
References
Ansoff, H. I. (1965). The New Corporate Strategy. New York: John Wiley.
Gavrea, C., Ilies, L. & Stegerean, R. (2011). Determinants of organizational performance: The case of Romania. Management &Marketing Challenges for the Knowledge Society, 6(2), 285-300.
Heiens, R. A., & Pleshko, L. P. (2010). The relationship between strategic orientation, growth strategies and market share performance. Regional Business Review, 29, 16.
Kisero, J. (2014). Investors in agro-processing are spoilt for choice. Daily Nation (Thursday, 6/3/2014).
Lusenaka, E. “Abolish taxes on agrochemicals.” Daily Nation, 10th February, 2017.
Machiuka, N. K. (2010). A survey of business growth strategies used by commercial banks in Kenya. Unpublished MBA research project, University of Nairobi.
Maina, C. W. (2011). Growth strategies adopted by Eco Bank, Kenya Ltd. Unpublished MBA research project, University of Nairobi.
Mbithi, B., Muturi, W. & Rambo, C. (2017). Effect of market Development strategy on performance in sugar industry in Kenya. International Journal of Academic Research in Business and Social Services, 5(12), 311-325. https://doi.org/10.6007/IJARBSS/v5- i12/1960.
Mosiria, M. M. (2012). Relationship between internal growth strategies and performance in selected banks in Nairobi, Kenya. Unpublished MBA research project, Kenyatta University.
Muchiri, S. W. (2012). Growth strategies adopted by Co=operative Bank as an operational orientation. Unpublished MBA research project, University of Nairobi.
Mugenda, O.M., & Mugenda, A.G. (2003). Research Methods, Qualitative and quantitative approaches. Nairobi: ACTS Publications.
Mutia, S (2013). An investigation into internal growth strategies effect on financial performance of commercial banks (A case study of Equity Bank, Nairobi). Unpublished MBA research project, Kenyatta University.
Mutua, E. N. (2016). Growth strategies and performance of insurance firms in Kenya. Unpublished MBA research project, University of Nairobi.
Mutukaa, S. K. (2007). A survey of the competitive strategies used by multinational firms in the agrochemical industry in Kenya. Unpublished MBA research project, Kenyatta University.
Mwangi, E. W. (2018). Growth strategies and performance of selected milk processing companies in Kenya. Unpublished MBA research project, Kenyatta University.
Mwangi, S. W. (2001). Local Agenda 21 Experiences in Nakuru: Process, Issues and Lessons (Vol. 10). Iied.
Mwaria, (2017). The relationship between product diversification and business growth in the banking industry in Kenya, a case study of Co-operative Bank. Unpublished MBA research project, Kenyatta University.
Mwiti, L. K. (2011). Market penetration strategies used by ESSAR Telecom Kenya YU. Unpublished MBA research project, University of Nairobi.
Ndegwa, M. G. M. (2003). A survey of the application of promotion mix in the agrochemical industry in Kenya. Unpublished MBA research project, University of Nairobi.
Njomo, G. W. & Oloko, M. (2016). Market penetration strategies and organizational growth: a case of soft drink sector in Kenya. International Journal of Management and Commerce Innovations, 3(2), 219-227.
Numa, J. A (2013). The relationship between product diversification and business growth in the banking industry in Kenya: The case of Co-Operative Bank of Kenya. Unpublished MBA research project, Kenyatta University.
Richard, P. J., Devinney, T. M., Yip, G. S. & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management. https://doi.org/10.1177/0149206308330560.
Singh, S., Darwish, T.K., & Potočnik, K. (2016). Measuring organizational performance: A case of subjective measures. British Journal of Management, 27, 214-224. https://doi.org/10.1111/1467-8551.12126.
Waithaka, P. (2016). Competitive intelligence practices and performance of firms listed on the Nairobi Securities Exchange, Kenya. European Scientific Journal. https://doi.org/10.19044/esj.2016.v12n19p107.
