Competitive strategy and business environment influencing performance of Small and Medium Enterprises in the Manufacturing sector: The case study of manufacturing firms in Mucheke light industry

Abstract

As an important participant in the Zimbabwean economy, Small and Medium Enterprises are confronted with the task of keeping themselves competitive, which concern their survival and future growth. The research seeks to investigate the competitive strategy and business environment influencing the Zimbabwean SMEs in Mucheke light industry. The research adopted the qualitative research paradigm of which the descriptive survey design, (Babbie, 1997), was employed. The population of study included the SMEs in the Mucheke light industries. Purposive sampling technique was used as a way of conducting only the information rich cases. The findings of the research are that cost, differentiation and innovation strategy are the key competitive strategies used by SMEs. The environment is harsh to the competitive advantage of the SMEs in the form of legal/government, political, economic and social factors. The research recommended that the SMEs make use of strategic alliances (SA) to cover multiple markets, manage the Key Performance Indicators (KPI) and government to relax regulations on the SMEs.

Key words: Competition, Strategy, Business environment and SMEs