INFLUENCE OF COMPETITIVE STRATEGIES ON ORGANIZATIONAL PERFORMANCE OF HOTELS IN KENYA (A SURVEY OF HOTELS IN MOMBASA COUNTY)

Abstract

There is increased international competition between destinations and hotels and it is apparent that Kenya's tourism competitive strategies need to be adjusted in order for the nation to be able to successfully compete both locally and internationally. Kenya is a renowned tourist destination competing with countries such as Egypt, Algeria, Tunisia, South Africa, Seychelles and Tanzania. This competition calls for hotels in Kenya to adopt strategies that would give the country advantages over its competitors. To survive, the hotels must be agile enough to respond to the pressures to compete on levels unrivalled in the past. Focus has now shifted to internal processes in order to offer the hotel the best opportunity to take on the unique challenges facing it today. In order for the sector to know if it is competitive in the industry with a lot of competition, implementation of effective competitive strategies is important. The general objective of this study was to assess the influence of competitive strategies on organizational performance of classified hotels in Mombasa County registered under the Kenya Association of Hotel Keepers and Caterers. The study captured the theoretical background on competitive strategies in an attempt to provide basis for appropriate conceptual and theoretical framework for the current study. Descriptive survey research design was adopted in this study and the target population was 24 classified hotels in Mombasa County registered under the Kenya Association of Hotel Keepers and Caterers and the respondents were top level management staff who were 144. The sampling technique used was stratified random sampling. Secondary and primary data was collected using a self-administered questionnaire. The questionnaire was piloted in order to check for validity and reliability. Questionnaires were administered through drop and pick method. The presentation of data was done by the use of tables. All this was achieved by the use of statistical package for social sciences (SPSS) version 22. The information was displayed by the use of bar graphs. From the results it was concluded that all the two competitive strategies of corporate growth and differentiation had a positive and significant influence in the organizational performance of hotels. Hotels should have attractive products and offer better services in order to attract more customers than their competitors and the management should formulate differentiation strategies that will contribute to the competitive advantage of the hotels in Mombasa County. This will give the hotels a competitive advantage over their competitors and should address the cost leadership issues that may jeopardize the growth and stability of the hotels in Mombasa County.