Product strategy and performance among real estates firms in Mombasa County

Abstract

Organizational performance refers to the ability of an enterprise to achieve such objectives as high profit, quality product, large market share, good financial results and survival at pre-determined time using relevant strategy for action. However, performance has proofed very elusive both for private and public organization. The general objective of the study was to investigate product strategy and its effect on the performance among real estate firms in Mombasa County. The specific objectives of the study were to determine the effect of product development strategy, product differentiation strategy, product diversification strategy, product segmentation strategy and product liquidation strategy and performance among real estate firms in Mombasa County. The theoretical framework of the study consisted of the Ansoff theory, the grand selection strategy theory, the generic strategy theory and the balanced score card theory. The study employed explanatory research design and the target population was 125 real estate firms in Mombasa County. The sample size was 97 real estate firms derived using the Taro Yamane sampling formula. Simple random sampling technique used to select the 97 firms. The unit of analysis was real estate firms while the unit of observation was the real estate firm managers. The study relied on primary data which was collected using a 5 Linkert scale structured questionnaire. A pilot study was conducted using ten questionnaires in Kilifi County. Data obtained was analyzed using SPSS and descriptive and inferential statistics was presented. Correlation analysis and Multiple Linear Regression Model was used to estimate the effect of the relationship between product strategy and performance among real estate firms in Mombasa County. Data was presented in tables and figures. The study established that: Product development (r=.529, p=.000); product differentiation strategy (r=.564, p=.000); product diversification strategy (r=.380, p=.000); product segmentation strategy (r=.575, p=.000) and product liquidation strategy (r=.500, p=.000) had a significant correlation with aviation performance. Multiple regression results established; Product development (β=.517, p=.005); product differentiation strategy (β=.254, p=.010); product diversification strategy (β=.318, p=.001); product segmentation strategy (β=.517, p=.005) and product liquidation strategy (β=.517, p=.005) had a positive and significant influence on aviation performance. The study recommended for; enhancement of product development through establishment of clear road maps that ensure products are accepted and adopted by the wider market; enhancement of differentiation strategy through adoption of clear differentiation philosophy by directing efforts on unique market positions which gives products an edge over competitors. The real estate’s management should also invest in human skills on diversifying their products and services that provides variety of products so as to appeal to a large market and invest in HR skills that effectively identify high yield segments of customers that helps them create a competitive edge over their competitors. Lastly, the firms should review their segmentation strategies with a goal to deliver houses that meet the specific needs of customers.