Business Strategy and Survival of Medium Scale Manufacturing Enterprises in Kampala Capital City Authority, Uganda

Abstract

The aim of the study was to examine the influence of business strategy on survival of medium manufacturing enterprises (MMEs) in Kampala Capital City (KCC). The specific objectives of the study were to examine the influence of the cost leadership strategy on the survival of MMEs in KCC; to assess the influence of market focus strategy on the survival of MMEs in KCC and to determine the influence of the product differentiation strategy on the survival of MMEs in KCC. The study was a cross sectional survey that used questionnaires and interview guide to collect data from a sample of 265 respondents. Quantitative data were analyzed using the SPSS computer based software using both descriptive and inferential techniques, while qualitative data were summarized into themes and quotes. The study revealed that cost leadership strategy and MME survival were significantly and positively related; focus on market strategy and MME survival were significantly positively related and product differentiation strategy was significantly positively related with MME survival. The study concluded that MME survival increases with increased adoption of the cost leadership strategy; MME survival increases with increased adoption of the focus on market strategy and that MME survival increases with the increased adoption of the product differentiation strategy among MMEs in KCC. The study recommended that MMEs in KCC should continue pursuing cost leadership; focus on market and product differentiation strategies if they are to survive.