Strategic Management Practices and Competitiveness of Selected Supermarkets in Nairobi City County, Kenya

Dennis Kabai Gichanga *

Department of Business Administration, School of Business, Economics and Tourism, Kenyatta University, Nairobi, Kenya.

Hannah Bula

Department of Business Administration, School of Business, Economics and Tourism, Kenyatta University, Nairobi, Kenya.

*Author to whom correspondence should be addressed.


Abstract

Strategic management practices are important for enhancing organisational competitiveness, particularly for supermarkets operating in a highly competitive retail environment characterised by thin profit margins, changing customer preferences, supply chain complexities, and intense market rivalry. This study investigated the influence of strategic management practices on the competitiveness of selected supermarkets in Nairobi City County, Kenya. Specifically, the study examined the effects of strategic planning, strategic leadership, resource allocation, and positioning strategies on supermarket competitiveness. The study focused on Naivas, Quickmart, and Carrefour supermarkets and was anchored on Strategic Leadership Theory, Strategic Fit Theory, Dynamic Capabilities Theory, and Strategic Agility Theory. A descriptive research design was adopted, targeting 150 employees. Using Yamane’s formula and purposive sampling, 109 respondents were selected. Primary data were collected through structured questionnaires containing items measured on a five-point Likert scale. This approach enabled the systematic collection of quantitative data on employees’ perceptions and experiences relevant to the study objectives. A pilot study involving 11 respondents was conducted, while validity and reliability were assessed through expert judgment and Cronbach’s alpha, respectively. Data were analysed and presented using tables, figures, and bar charts. The findings established that strategic planning positively influenced competitiveness through environmental scanning, goal formulation, and effective implementation of strategic plans. Strategic leadership enhanced competitiveness through effective decision-making, employee motivation, and goal-oriented leadership. Efficient resource allocation, particularly in financial planning, budgeting, and human resource deployment, improved operational efficiency and market responsiveness. Positioning strategies, including product differentiation, pricing, and brand positioning, enhanced customer loyalty and market share. Regression results indicated that all independent variables had positive and statistically significant effects on competitiveness. The study concluded that strategic management practices are critical determinants of supermarket competitiveness and recommended strengthening strategic planning, adaptive leadership, strategic resource allocation, and differentiated market positioning.

Keywords: Strategic management, strategic planning, strategic leadership, resource allocation, positioning strategies, competitiveness, supermarkets


How to Cite

Gichanga, Dennis Kabai, and Hannah Bula. 2026. “Strategic Management Practices and Competitiveness of Selected Supermarkets in Nairobi City County, Kenya”. Asian Basic and Applied Research Journal 8 (1):897-908. https://doi.org/10.56557/abaarj/2026/v8i1264.

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