EFFECT OF COST LEADERSHIP STRATEGY ON PERFORMANCE BY KENYA SELECTED CAR RENTAL BUSINESS IN NAIROBI CITY COUNTY,

Abstract

Purpose of this study was to determine the effect of cost leadership strategy
on performance of selected car rental business in Nairobi City County. This
study was a cross-sectional descriptive study design where purposive
sampling technique was used to select fifteen (15) car rental business in
Nairobi City County. Stratified and simple random sampling technique was
employed in recruiting three categories of respondents. The three category of
staff included, top level, middle level and bottom level management.
Structured questionnaires were used to collect primary data which was then
analyzed. Both descriptive and inferential statistics was used. The findings of
the study revealed that cost leadership strategy was not statistically
significant in affecting the performance of Car hire firms in Nairobi City
County. Many of the car hire business in Nairobi City County charged same
as their competitor. Cost leadership strategy affected performance of car
rental business in Nairobi City to a very large extend. This study
recommends the need to evaluate other competitive strategies on
performance of car rental business in Nairobi City. This study findings
implies that sustaining a cost leadership strategy an entrepreneur should
become aware of the competitors offer and consider developing customer
intimacy and focus on a narrow target market.