Short answer

To remain competitive, cement companies must actively pursue market development and diversification, as these strategies have a proven positive impact, even if other growth avenues show mixed results.

Field
Innovation & Markets
Source
Strategic Journal of Business & Change Management (2015)
Method
Descriptive research design
Sample
150 participants
Evidence
Moderate effect

Implementing strategies focused on diversifying product offerings and expanding market reach can significantly enhance a cement company's competitive standing. This innovation & markets research insight is drawn from a 2015 study published in Strategic Journal of Business & Change Management. Using Descriptive research design with 150 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: To remain competitive, cement companies must actively pursue market development and diversification, as these strategies have a proven positive impact, even if other growth avenues show mixed results.

Study
Innovation & MarketsHigh ImpactModerate effect

Diversification and Market Development Boost Cement Firm Competitiveness

Implementing strategies focused on diversifying product offerings and expanding market reach can significantly enhance a cement company's competitive standing.

Strategic Journal of Business & Change Management · 2015

01

Key Findings

  • 01Growth strategies enhanced increased efficiency.
  • 02Growth strategies increased the company’s market share.
  • 03Respondents were neutral on whether growth strategies enhanced increased production capacity or product quality.
  • 04Market development and diversification strategies have a positive effect on competitiveness.
02

Application

Design takeaway

To remain competitive, cement companies must actively pursue market development and diversification, as these strategies have a proven positive impact, even if other growth avenues show mixed results.

How to apply

A cement company experiencing market pressures should analyze its current product range and market reach, identifying opportunities for new product development or entry into untapped markets.

Project actions

  • 01Clearly define what 'competitiveness' means for your specific design project.
  • 02Consider how different growth strategies might impact various aspects of competitiveness (e.g., cost, quality, market share).
03

Method & Evidence

AimWhat is the effect of product development, market development, market penetration, and diversification on the competitiveness of firms in the Kenyan cement industry?
MethodDescriptive research design
ProcedurePrimary data was collected using questionnaires, supplemented by secondary data. Raw data was edited for inconsistencies and incompleteness, then coded for analysis.
Sample150 participants
ContextCement industry in Kenya

Variables

IVGrowth strategies (product development, market development, market penetration, diversification)
DVCompetitiveness (efficiency, market share, production capacity, product quality, market retention)
CVIndustry context (Kenyan cement industry), Company (EAPCC)
04

Strengths & Limitations

Strengths

  • +Addresses a relevant business problem in a specific industry context.
  • +Uses a combination of primary and secondary data collection methods.

Limitations

The findings might not apply to all industries or markets; the study's focus on one company limits its broad applicability.

Reliability & validity

Reliability could be improved by using more standardized survey instruments. Validity might be enhanced by triangulating questionnaire data with objective market performance data.

Think critically

To what extent do the neutral findings on production capacity and quality indicate a need for improved operational strategies alongside market-focused ones?

05

Design Principles

"Strategic diversification and market expansion are key drivers of competitive advantage in evolving industries."

In dynamic industries, relying solely on existing products or markets can lead to stagnation. Proactive diversification and market development allow businesses to adapt to changing demands, mitigate risks, and capture new opportunities, ultimately strengthening their position against competitors.

06

What This Means for Your Design

Companies that create new products or sell in new places tend to do better against their rivals.

How to use in your project

  • 1.This research can inform the strategic context of a design project, explaining why certain product features or market approaches are recommended.
07

Add to My Project

08

Quick Cite

Paragraph starter

This study highlights that market development and diversification strategies have a positive effect on firm competitiveness within the cement industry. This suggests that for design projects aiming to enhance a company's market position, exploring avenues for expanding market reach or diversifying product offerings should be a primary consideration.

09

Source

Strategic Journal of Business & Change Management

EFFECT OF GROWTH STRATEGIES ON THE COMPETITIVENESS OF FIRMS IN KENYAN CEMENT INDUSTRY: A CASE STUDY OF EAST AFRICAN PORTLAND CEMENT COMPANY LIMITED

journal · 2015

View source

Questions About This Research

What does the research say about diversification and market development boost cement firm competitiveness?
To remain competitive, cement companies must actively pursue market development and diversification, as these strategies have a proven positive impact, even if other growth avenues show mixed results. Evidence: Strategic Journal of Business & Change Management (2015).
Why does "Diversification and Market Development Boost Cement Firm Competitiveness" matter for design?
In dynamic industries, relying solely on existing products or markets can lead to stagnation. Proactive diversification and market development allow businesses to adapt to changing demands, mitigate risks, and capture new opportunities, ultimately strengthening their position against competitors.
How can designers apply this research?
To remain competitive, cement companies must actively pursue market development and diversification, as these strategies have a proven positive impact, even if other growth avenues show mixed results.
What were the main findings?
Growth strategies enhanced increased efficiency.. Growth strategies increased the company’s market share.. Respondents were neutral on whether growth strategies enhanced increased production capacity or product quality.. Market development and diversification strategies have a positive effect on competitiveness.
What research method was used?
Descriptive research design with 150 participants.
How strong is the evidence?
Evidence strength is rated Moderate effect, based on a 2015 journal from Strategic Journal of Business & Change Management.
What should I do differently in my next project?
A cement company experiencing market pressures should analyze its current product range and market reach, identifying opportunities for new product development or entry into untapped markets.
What are the limitations?
The study focused on a single company, limiting generalizability. Neutral findings on production capacity and quality suggest potential areas for further investigation.