Effects of Competition on Performance in Engineering Industry – A Case Study of Holman BrothersEast Africa Limited

Abstract

This paper is anchored on the study carried out to establish the factors affecting performance – case of Holman Brothers (E.A) Ltd. It investigated several factors like marketing strategy; capital structure; competition; and quality products and services.  This paper however will concentrate on competition as one of the investigated factor. Competition is critical in the market as will involve the evaluation of magnitude of competition in the firm’s industry, both the number of competing firms and their relative strengths in the market place. The study adopted a descriptive survey research design which describes the characteristics of particular individuals and was not restricted to fact finding but results in formulation of important principles of knowledge and solutions to significant problem. The study population included all employees of Holman Brothers (E.A) Ltd working in Head office and its branches, while the target population consisted of 313 employees comprising of 263 males and 50 females, working in 11 different departments. The sample size of 37% constituted 116 respondents. The study adopted questionnaires and interviews as research instruments, which were clear, simple to understand, unbiased and objective. The researcher used Statistical Package for Social Science (SPSS) to analyze data.The study found that competitive strategies such as pricing, promotions and innovations determine the companies’ performance in the market. The study recommended that the Government through Ministry of Trade createconducive environment which promotes fair competition among the companies.

Key words: Pricing, Promotion, Innovation, Market Performance, Construction Industry