Publication:

Diversification Strategy and Sustainable Competitive Advantage in Cement Manufacturing Companies in Kenya

Manufacturing companies are currently opting to various strategies to deal with such emerging competitive issues. Through sustainable competitive advantage attained by adoption of the right corporate strategies, companies can enjoy better returns, large market share and attract well-trained employees The objective of the study was to establish contribution of diversification strategy on sustainable competitive advantage in cement manufacturing companies in Kenya. The study employed a descriptive research design. The target population were all the six cement manufacturing companies in Kenya. Census sampling approach was adopted to encompass all the six cement manufacturing companies. A proportionate sample of 108 respondents was chosen as a representative of the whole. From the correlation analysis results, the research variable, Diversification Strategy, had a positive influence on sustainable competitive advantage in cement manufacturing companies in Kenya. From the regression analysis results, a coefficient of correlation of 0.770 was obtained indicating that diversification strategy had a positive effect on sustainable competitive advantage in the cement manufacturing companies. The study recommended that management should assess the strategy’s suitability considering company’s structure, culture, and policies, as well as the overall targeted goals, before implementing it. The study recommended that adequate strategic planning be done professionally, and that regular monitoring be done periodically to guarantee they do not deviate from the plans. The study also recommended that cement manufacturers should adhere strictly to the rules set forth, and the relevant ministries should make sure that all businesses do the same.