Competitive Strategies and Operational Sustainability of Bic East Africa Limited, Nairobi

Abstract

This study examined the influence of competitive strategies on the operational sustainability of BIC East Africa Limited, Nairobi. The fast-moving consumer goods (FMCG) sector in Kenya is characterized by rising operational costs, market saturation, and intense competition, which threaten firms’ ability to sustain performance. The study focused on cost leadership, differentiation, and focus strategies as the independent variables, and operational sustainability measured by profitability, market share, and employee productivity as the dependent variable, with government policy as a moderating variable. A descriptive research design was adopted to establish the relationship between the study variables. The target population comprised 150 employees of BIC East Africa Limited, categorized into executive, technical, and support staff, as indicated in the Human Resource Department Report (2025). Using a stratified random sampling technique, a sample of 109 respondents was selected to ensure proportional representation across departments. The data were collected through a structured questionnaire and analyzed through SPSS Version 25 using descriptive and inferential statistical analysis methods, including multiple linear regression analysis. The findings revealed that the cost leadership and differentiation strategies can significantly improve the sustainability of operations compared to the focus strategy, which had a moderate but positive influence. The government policy had a direct effect on the sustainability results but only a weakly moderating impact on the correlation between competitive strategies and sustainability results. The study concludes that a hybrid approach combining cost leadership and differentiation strategies is most effective for achieving operational sustainability. This research contributes to strategic management literature by empirically linking competitive strategies and sustainability within the context of emerging operating markets, offering valuable insights for managers, policymakers, and scholars.