ASSESSMENT OF DIFFERENTIATION STRATEGY ON THE PERFORMANCE OF THE SUGAR INDUSTRY IN WESTERN KENYA

Abstract

The uncompetitiveness of the sugar industry in Kenya necessitated this study to be carried out.
The purpose of the study was to assess the application of the differentiation strategy on the
performance of the sugar industry in Western Kenya. The study adopted a descriptive survey
design to collect data and was carried out in western Kenya. It targeted employees of Mumias,
Nzoia, West Kenya and Butali sugar companies. Questionnaires, interview schedules and
observation checklists were used as research instruments. Target population was 1851 employees
comprising the management and non management staff making a sample size of 179 employees.
Purposive sampling technique was adopted to select employees to participate in the study. To
determine the validity of the instruments, they were developed and presented to research experts
and my supervisors at the university to establish whether they measured what they intended to
measure and to modify them accordingly. Test-re-test method was used where the same
instruments were administered more than once to the same people under identical conditions
then the performance was compared. For reliability of the results, piloting was carried out at
Chemelil and Muhoronii sugar firms before the actual field study. Data was analyzed using both
descriptive and inferential statistics after collection. Mumias Sugar Company was found to be
aggressive as compared to the three remaining companies. Thus the company stands to gain in
terms of corporate image and reputation due to high promotion activities. Lastly, four challenges
were identified facing sugar industry performance in western Kenya. These were government
policy and politics in the management of the firms, liberalization which has led to importation of
cheap sugar from COMESA member countries and Brazil