Service Differentiation Strategy and Performance of Cement Manufacturing Companies in Kenya

Abstract

Cement companies in Kenya have had a dwindling sales performance between 2016 to 2019 despite the construction sector flourishing. This has caused some companies to go into receivership while others recorded a profit warning.  This study sought to determine the effect of service differentiation strategy on performance of cement manufacturing companies in Kenya. The study was guided by the resource-based theory and adopted a descriptive survey design. Target population comprised 375 employees of cement companies. The respondents’ sample was reached by calculating 30% of the total population to bring a total of 112 employees.  Questionnaires were the data collection instrument.  Data analysis was arrived at through descriptive statistics and correlation analysis. Results showed that service differentiation (r=0.682, p=0.000) was positively and significantly correlated with performance of cement companies. The study concluded that service differentiation increases company efficiency as well as company loyalty. The study recommends that the companies’ management should devise steps and directives that will ensure effective implementation of feedback received on service improvement.