1 research outputs found
Effects of Differentiation Strategies on the Growth of Fashion Businesses in Kenya
No full textA Research Project Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Master of Business Administration (MBA).The purpose of this study was to determine the effects of differentiation strategies on the growth of fashion businesses in Kenya. The study sought to address the following research questions: What are the effects of product differentiation strategies on the growth of fashion businesses? What are the effects of service differentiation strategies on the growth of fashion businesses? What are the effects of channel differentiation strategies on the growth of fashion businesses?
A descriptive survey research design was applied to a population of 82 fashion design businesses located in Nairobi County in Kenya. The sample size was the entire population since the population was less than a 100. Primary data was collected by the use of structured questionnaires following a five point likert scale through a drop and pick method. The close-ended questionnaires was developed in line with the research questions to the respondents who included employees in senior management levels and other staff involved in strategy formulation process. The questionnaires was dived into four sections and was made simple and easy for the respondents to answer. Trained research assistants assisted in the data collection process.
The research process began by development of the structured questionnaire, seeking permission to carry out the research, and then having a pilot test of 15 questionnaires. This was necessary to assess the validity and reliability of the questionnaire. The research assistants were trained to answer respondent’s questions, clarify, and translate questions that the respondents found difficult. The questionnaires were revised after the pilot test then the revised questionnaire were used during the actual data collection. Statistical Package for Social Sciences (SPSS) and Ms Excel were used to analyse the data. The data collected was cleaned, coded, and checked for any errors and omissions. The collected data was analysed by use of descriptive statistics to find the frequencies and percentage distribution. The findings were presented in tables, graphs, and pie charts.
The study found that there is a significant relationship between differentiation strategies and the growth of fashion businesses. Most of the fashion businesses under study were found to have product quality as their major product differentiation strategy. Service delivery and customer consulting were the most used service differentiation strategies while product delivery and availability of product were the most common channel differentiation strategies.
The major conclusion of the study was that the biggest success of a fashion business arises mostly from having a successful product in the market. Service differentiation strategies have led to increase in profits and increase in customer satisfaction. The study also found that, fashion businesses that have channel differentiation strategies have had an increase in sales and customer loyalty.
The study recommends that fashion businesses carry out more research on more aspects that customers consider valuable or important in a product and incorporate them in their differentiation strategies. Fashion businesses should have good service delivery even as they engage in other differentiation strategies as well as constantly training their personnel. The study also recommends that fashion businesses should ensure they have well-functioning distribution channels that have good communication
