The aim of this study was to assess the influence of marketing strategies
on growth and sustainability in the OEM industry in Zambia. Based on Porter’s
Generic Competitive Business Strategies, the study identified the major bottlenecks in the
currently employed marketing strategies and assessed the relationship between
Porter’s generic strategies in achieving KPI’s. A quantitative survey with structured
questions was administered through self-completion questionnaires to 40 respondents, representing a 95% response rate. A
descriptive research design was used and a quantitative research strategy used.
IBM SPSS was used for correlation analysis, to assess the strength of the
relationship between variables. The results indicated that at a 1% level of
significance, the Pearson correlation coefficient of 0.01 and 0.000 at sig.
(2-tailed) < 0.01 indicated that there was a statistically significant relationship
between cost strategy and revenue and market share growth. The results further
showed Pearson correlation coefficients of 0.000 at sig. (2-tailed) < 0.01
indicating that there was a statistically significant relationship between
differentiation strategy and revenue and market share growth. However,
the results indicted a Pearson correlation coefficient of 0.015 and 0.036 which
was not statistically significant at sig. (2-tailed) < 0.05 between focus
strategy and revenue and market share growth. According to the research
hypotheses testing, cost strategy and differentiation strategy had greater
priorities and potential to achieving profitable and sustainable growth in the
market.
References
[1]
Achim, M., & Borlea, S. (2008). Business Performances: Between Profitability, Return and Growth. Annals of University of Craiova—Economic Sciences Series, 2, 1-12.
[2]
Akan, O., Allen, R. S., Helms, M. M., & Spralls, S. A. (2006). Critical Tactics for Implementing Porter’s Generic Strategies. Journal of Business Strategy, 27, 43-53.
https://doi.org/10.1108/02756660610640173
[3]
Akcagün, E., & Dal, V. (2014). The Use of M. Porter’s Generic Strategies in The Turkish Apparel Industry and Strategy Proposals for Companies. Tekstil ve Konfeksiyon, 24, 151-157.
[4]
Allen, S. R., & Helms, M. M. (2006). Linking Strategic Practices and Organizational Performance to Porter’s Generic Strategies. Business Process Management Journal, 12, 433-454. https://doi.org/10.1108/14637150610678069
[5]
Alnidawi, A. B., & Omran, M. F. (2016). Human Resources Management Activities Adopted in the Value Chain Model and their Impact on the Organizational Sustainability-An Empirical Study in the Jordanian Pharmaceutical Companies. International Business Research, 9, 106-117. https://doi.org/10.5539/ibr.v9n8p106
[6]
Amit, R., & Shoemaker, P. J. (2003). Strategic Assets and Organizational Rent. Strategic Management Journal, 14, 33-46. https://doi.org/10.1002/smj.4250140105
[7]
Avlonitis, G., Papastahopoulou, P., & Gounaris, S. (2001). An Empirically-Based Typology of Product Innovativeness for New Financial Services: Success and Failure Scenarios. Journal of Innovation Management, 18, 324-342.
https://doi.org/10.1111/1540-5885.1850324
[8]
Bauer. C., & Colgan. J., (2001). Planning for electronic Commerce Strategy: An Explanatory Study from the Financial Services Sector. Logistics Information Management, 14, 24-32. https://doi.org/10.1108/09576050110360205
[9]
Bordean, O., Borza, A., Razvan, N., & Crisan-Mitra, C. (2010). The Use of Michael Porter’s Generic Strategies in the Romanian Hotel Industry. International Journal of Trade, Economics and Finance, 1, 173-178. https://doi.org/10.7763/IJTEF.2010.V1.31
https://www.researchgate.net/publication/288913744_The_Use_of_Michael_
Porter%27s_Generic_Strategies_in_the_Romanian_Hotel_Industry
[10]
Cross, L. (1999). Strategy Drives Marketing Success. Graphic Arts Monthly, 71, 96-106.
[11]
David, F. R. (2011). Strategic Management Concepts and Cases. Upper Saddle River, New Jersey: Prentice Hall.
[12]
Erdil, S., Erdil, O., & Keskin, H. (2004). The Relationships between Market Orientation, Firm Innovativeness and Innovation Performance. Journal of Global Business and Technology, 1, 1-11.
[13]
Evans, N. D., & Campbell, G. (2006). Stonehouse, Strategic Management for Travel and Tourism. Oxford: Butterworth-Heineman.
[14]
Frey, F. (2017). SPSS (Software).
https://www.researchgate.net/publication/311101660_SPSS_software
[15]
Harrison, J. S., & Enz, C. A. (2005). Hospitality Strategic Management—Concepts and Cases. Hoboken, NJ: John Wiley and Sons.
[16]
Helms, M. M., Clay, D., & Peter, W. (1997). Competitive Strategies and Business Performance: Evidence from the Adhesives and Sealants Industry. Management Decision, 35, 689-703. https://doi.org/10.1108/00251749710186531
[17]
Hlavacka, S., Bacharova, L., Rusnakova, V., & Wagner, R. (2001). Performance Implications of Porter’s Generic Strategies in Slovak Hospitals. Journal of Management in Medicine, 15, 44-66. https://doi.org/10.1108/02689230110386489
[18]
IBM (International Business Machines Corporation) (2009). IBM Completes Acquisition of SPSS Inc. http://www-03.ibm.com/press/us/en/pressrelease/28522.wss
[19]
Jime’nez-Jime’nez, D., & Sanz-Valle, R. (2011). Innovation, Organizational Learning, and Performance. Journal of Business Research, 64, 408-417.
[20]
Justinian, J. M. (2015). Application of Porter’s Generic Competitive Business Strategies and Their Effect on Performance in Zanzibar Hotel Industy. Masters Dissertation, Dar es Salaam: Open University Of Tanzania.
[21]
Kabeyi, M. (2018). Michael Porter’s Five Competitive Forces and Generic Strategies, Market Segmentation Strategy and Case Study of Competition in Global Smartphone Manufacturing Industry. International Journal of Applied Research, 4, 39-45.
https://doi.org/10.22271/allresearch.2018.v4.i10a.5275
[22]
Kehinde, J. O., & Ikioda, E. I. (2011). Competitive Marketing Strategies: Tools for Enhancing Value in the Dynamic World of Business. Manager, 13, 50-63.
[23]
Kinyuira, D. (2014). Effects of Porter’s Generic Competitive Strategies on the Performance of Savings and Credit Cooperatives (Saccos) in Murang’a County, Kenya. Journal of Business and Management, 16, 93-105. https://doi.org/10.9790/487X-166193105
[24]
Kotler, P. (1997) Marketing Management: Analysis, Planning, Implementation, and Control (9th ed.). Upper Saddle River, NJ: Prentice Hall.
[25]
Kumar, V., Jones, E., Venkatesan, R., & Leone, R. P. (2011). Is Market Orientation a Source of Sustainable Competitive Advantage or Simply the Cost of Competing? Journal of Marketing, 75, 16-30.
[26]
McGee, J. (2014). Differentiation Strategies. In C. L. Cooper, J. McGee, & T. Sammut-Bonnici (Eds.,), Wiley Encyclopedia of Management (3rd ed., Vol. 3, pp. 3). Hoboken, NJ: John Wiley & Sons. https://doi.org/10.1002/9781118785317.weom120098
https://www.researchgate.net/publication/280246508_differentiation_strategies
[27]
Mitroulis, D., & Kitsios, F. (2016). Fostering a Competitive Differentiation Strategy for Sustainable Organizational Performance. In E. Grigoroudis, & M. Doumpos (Eds.), Operational Research in Business and Economics (pp. 85-112). Cham: Springer.
https://doi.org/10.1007/978-3-319-33003-7_5
https://www.researchgate.net/publication/305726318_Fostering_a_Competitive_
Differentiation_Strategy_for_Sustainable_Organizational_Performance
[28]
Olwande. P. (2014). The Application of Porter’s Generic Business Strategies and Performance of Pharmaceutical Wholesalers in Kenya. Thesis, Nairobi: School of business, University of Nairobi.
[29]
Pimtong, T. (2009). The Impact of Industry Forces on Resource Competitive Strategies and Hotel Performance. Master’s Thesis, Stillwater, OK: Oklahoma State University. (Unpublished)
[30]
Porter, M. E. (1998). Competitive Strategy: Techniques for Analyzing Industries and Competitors (1st ed., pp. 68-69). New York: Free Press.
[31]
Porter, M. E. (2004). The Five Competing Forces That Shape Strategy. Harvard Business Review, 1, 78-93.
[32]
Salavou, H., Baltas. G., & Lioukas. S. (2004). Organizational Innovation in SMEs: The Importance of Strategic Orientation and Competitive Structure. European Journal of Marketing, 38, 1091-1112. https://doi.org/10.1108/03090560410548889
[33]
Tampoe, M. (1994). Exploiting the Core Competences of Your Organization. International Journal of Strategic Management Long Range Planning, 27, 66-77.
https://doi.org/10.1016/0024-6301(94)90057-4
[34]
Tanwar, R. (2013). Porter’s Generic Competitive Strategies. IOSR Journal of Business and Management, 15, 11-17.
[35]
Vahdati, H., Nejad, S. H., & Shahsiah, N. (2018). Generic Competitive Strategies toward Achieving Sustainable and Dynamic Competitive Advantage.
https://www.semanticscholar.org/paper/Generic-Competitive-Strategies-toward-Achieving-and-Vahdati-Nejad/6afdde45ff3b4caac9691c421c8f48c4826ed32e
[36]
Viltard, A. L (2017). Strategic Mistakes (Avoidable): The Topicality of Michael Porter’s Generic Strategies. Independent Journal of Management & Production, 8, 474-497.
https://www.researchgate.net/publication/317292877_Strategic_mistakes_
AVOIDABLE_The_topicality_of_Michel_Porter%27s_generic_strategies
[37]
Wang’odu, A. (2016). Marketing Strategies and Customer Satisfaction: A Case Study of The Institute of Executive Coaches—East Africa. Master’s Dissertation, Nairobi: United States International University-Africa.
[38]
Yang, J. (2011). Innovation Capability and Corporate Growth: An Empirical Investigation in China. Journal of Engineering and Technology Management, 29, 34-46.
https://doi.org/10.1016/j.jengtecman.2011.09.004
