The Impact of Distribution Channel Differentiation on Organizational Performance: The Case of Sameer Africa Limited in Nairobi, Kenya (Published)
The study investigated the relationship between differentiation strategy and performance of Sameer Africa Ltd located in Nairobi, Kenya. Informed by the study this paper discusses the extent to which channel differentiation strategy adopted by Sameer Africa (K) Limited influenced the company’s performance. The study employed a correlational research design. The study targeted 112 employees of Sameer Africa (K) Limited comprising of senior management, HODs and junior staff and 90 dealers based in Nairobi. A sample of 134 respondents was selected by use of stratified and simple random sampling techniques. Primary data was collected through self-administered questionnaires. The quantitative data was analysed using descriptive statistics in the form of tables and inferential statistics in the form of Pearson correlation and regression analysis with significance level of 0.05 to test the hypothesis. From the findings of the study, majority of the respondents believed that Sameer Africa (K) Ltd could achieve competitive advantage through channel differentiation. This suggest that an increase in channel differentiation strategy such as use of market trends to determine most appropriate channel strategy, use of different channels with the aim of minimizing cost of distribution, selling some of the products and services through intermediary and complementary firms and applying different distribution channels so as to satisfy unique customer needs would result in an increase in performance through market share, revenue, sales and customer satisfaction. The study sought to provide an empirical evaluation of the relationship between differentiation strategy and organizational performance.