Abstract:
Competitive strategy aims to establish a profitable and maintainable location against the forces that define industry competition. Public and private institutions operate in a competitive environment. This forces them to use appropriate strategies to enhance their performance. Much has been done on competitive strategies on various institutions but, this study was interested on the influence of competitive strategies that private hospitals use to improve their performance in Kisii County. This study investigated the effect of competitive strategies adopted on performance by private hospitals in Kisii County; The objectives of the study were to identify the competitive strategies adopted on performance by private hospitals in Kisii County; examine the relationship between the competitive strategies adopted and performance of private hospitals in Kisii County; evaluate the effects of the competitive strategies adopted and performance of private hospitals in Kisii County. The study adopted a survey research design and targeted all the sixteen registered Private Hospitals in Kisii County which consisted of 105 administrators and 2400 patients, the study sampled 426 respondents. The study used stratified and simple random sampling techniques. The questionnaires were used to collect data and then analyzed using descriptive statistics such as frequency counts, percentages and weighted average. Karl Pearson’s Coefficient of Correlation analysis was used to evaluate the effect of competitive strategies adopted and performance of private hospitals in Kisii County. The findings of the study agree with Michael Porter’s contention that the three competitive strategies: cost leadership, differentiation and focus strategy are fundamental in selling and a firm or an industry performs better by combining either two or both. Further, the study revealed that the three competitive strategies The study concludes that the strategies adopted improve the overall private hospitals performance in Kisii County and recommends that private hospitals in Kisii County should strive to implement and invest more on differentiation strategy.
