COMPETITIVE STRATEGIES AND PERFORMANCE OF PLASTIC PACKAGING INDUSTRIES IN KENYA: A CASE OF COCA-COLA BEVERAGES KENYA PREFORM MANUFACTURING PLANT

Abstract

Plastic packaging industries are critical instrument for job creation, poverty alleviation, and agents for economic development of the country. Its aesthetic qualities, robustness, affordability, and ease As a result, the nation's demand for plastics have increased. However, despite evidence of the risks that plastic waste poses to the Environmental sustainability, water resources, food security, and public health nexus, nearly half of the world's plastic waste comes from packaging materials. According to a number of sources, Kenya produces about 18 million tons of plastic, both unprocessed and processed, whereas the continent of Africa imported 117 million tons. The last three years have seen a six-fold growth in plastic imports and usage in Kenya, which has raised the issue of producing sustainable plastics and managing trash and product packaging. The study sought to explore the competitive strategies and performance of plastic packaging industries. The specific objectives are to assess the influence of cost leadership strategy; differentiation strategy; cost focus strategy and differentiation focus strategy on the performance of plastic packaging industries. This study adopted a descriptive research design with a target population of 100 employees from CCBK-PMP. A sample size of 50 respondents was chosen through stratified random sampling for analysis. Questionnaires were the primary means of gathering data for the research project. A pilot test was conducted before distributing uestionnaires. Descriptive statistics were used in the data analysis. in particular, percentages, means, and averages. SPSS version 24.0 and simple spreadsheet-based tabulations and report presentations were the data analysis tools. Through inferential statistics, the link between the variables was determined. The study determined that the cost-focus strategy had the most impact on CCBK-PMP’s performance. The analysis confirmed that performance was significantly impacted by differentiation focus and differentiation strategies as well. It was noted that the cost leadership strategy had minimal effect on the success of CCBK-PMPs among the competitive strategies. The research advises the management of CCBK-PMP to pursue a cost-focused strategy, which emphasizes gaining an edge over competitors through specializing in a niche market segment by maintaining a lower cost in the niche. By focusing on a particular customer group or geographic area, CCBK-PMP can develop offerings and solutions specifically designed to meet the demands of that niche while keeping costs low. This approach allows the company to outcompete rivals within the targeted market while ensuring efficiency and cost-effectiveness, rather than attempting to maintain the lowest costs across the entire industry. The study further recommends that future research should investigate how adopting sustainable approaches such as incorporating sustainable resources, reducing waste, and enhancing energy efficiency could impact competitive strategies and performance within the plastic packaging industry. This aligns with the observed correlation between cost-focus strategies and performance. Specifically, cost-focus strategy, when combined with sustainable practices, may yield competitive advantages by reducing operating costs and responding to increasing market demands for environmentally responsible practices. Policymakers and industry leaders are encouraged to consider these findings when crafting policies and setting industry standards to foster a more sustainable, cost-effective plastic packaging sector.