Effect of Focus Strategy on Organizational Performance of Bus Companies in Isiolo County, Kenya

Abstract

There have been poor-quality services and increased cases of inefficiencies in Kenyan bus companies, which have resulted in tough competition from minibusses. The purpose of the study was to determine the effect of focus strategy on organizational performance of bus companies in Isiolo County, Kenya. A descriptive research design was adopted. The target population comprised 9 bus companies in Isiolo County, which also formed the unit of analysis. The unit of observation included 39 drivers, 56 conductors, 18 booking clerks, and 24 finance officers. A census method was used to include all respondents, who were issued with closed-ended questionnaires. A pilot study was conducted at Mabruk Bus Company in Marsabit County, selected using a simple random sampling method. Internal consistency was maintained through the use of Cronbach’s alpha coefficient, while validity was ensured by examining both criterion and construct validities, among other types. Data analysis was carried out using SPSS version 27 to generate descriptive statistics such as frequency, percentage, and mean. The study also conducted linear regression analysis, including model summary, analysis of variance, and regression coefficients. The results demonstrated that the majority of the respondents, 59 (52.7%), strongly agreed and 46 (41.1%) agreed, with a mean of 4.43, that their company focused on operating along selected routes to serve a particular market segment efficiently. Also, 56 (50.0%) strongly agreed, and 33 (29.5%) agreed, with a mean of 4.17, that their company’s branding and promotional efforts were aimed at appealing to their target customers. However, 46 (41.1%) strongly disagreed, and 38 (33.9%) disagreed, with a mean of 2.07, that implementing a focus strategy had helped their company achieve better performance compared to competitors in their target market. Focus strategy had an F-Statistic of 77.40 and a p-value of 0.001, implying that the study rejected the null hypothesis that focus strategy had no significant impact on organizational performance of bus companies in Isiolo County. In conclusion, the bus companies had specific routes they provided their travelling services, which were branded and promoted effectively to stabilize their customer base within the identified routes. Nevertheless, different bus companies had similar focus strategies that led to duplication of modes of operations, hence unable to effectively compete with each other. The management of the bus companies is recommended to reposition their focus strategies to offer notable services such as value-added services to minimize duplication of transportation services.