RELATIONSHIP BETWEEN DIFFERENTIATION STRATEGY AND PERFORMANCE OF NAIROBI-KISUMU METER GAUGE RAILWAY SERVICES IN KENYA

Abstract

The transport industry in Kenya has undergone drastic changes.  This has compelled the government of Kenya to modernize railway services in the country to attain competitive advantage. Indeed, Kenya Railways Corporation (KRC) has been revamping transport in the rail sector to maximize service efficiency, reliability and safety. Despite this, Nairobi-Kisumu Meter Gauge Railway Services has not performed well as anticipated due to several challenges. KRC has now resorted to night travel only due to low demand. This has rendered the services uncompetitive.  This study sought to evaluate the relationship between differentiation strategy and performance of the Nairobi- Kisumu Meter Railway Services in Kenya. This study adopted a mixed research approach. The research design was descriptive in nature. The target population comprised of all 20-management staff working under this rail services. The study used census method to incorporate the whole management team in the research. Primary data was gathered by use of semi structured questionnaires. Data collected was analyzed by use of both descriptive and inferential statistics. The hypotheses were tested at a significance level of 0.05.  Findings reveal that differentiation strategy has a statistically significant relationship with the performance of the railway service. The study concluded that management enhances the application of differentiation strategy to boost performance to great heights. The findings of this study will enable stakeholders at KRC and the industry players to formulate and implement strategies that would help them attain competitive advantage in the market.