Effect of growth strategies on performance of telecommunication firms in Uganda
Nanyunja, Sharon Priscilla
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The study was about growth strategies on performance of telecommunication firms in Uganda Although the literature suggests that strategies are developed at the three different levels, theoretical and empirical studies of the relationship between strategy and organizational performance have mainly emphasized on growth strategy. The main objective of the current research was to assess the effect of growth strategies on telecommunication sector firm performance. The study used descriptive design; this type of research seeks to report an existing research problem as precisely as possible. This research used a descriptive survey design. Population of the research were the 62 telecommunication firms in Uganda that is public infrastructure provider (PIP) and public service provider (PSP) licenced while the unit of observation was the marketing manager in each firm. This study used primary data obtained using questionnaires and administered via Microsoft forms Data was analysed using both descriptive statistics like mean as well as standard deviation and inferential statistics which included correlation and regression analysis. The regression results revealed that market development strategy and firm performance have a positive and significant link. The conclusions implying that a change in market development strategy would result to an increase in performance of telecommunication firms in Uganda. According to the correlation results, a positive rise in market penetration strategy will result in a positive improvement in firm performance. The regression results revealed that market penetration strategy and firm performance have a positive and significant link. The findings suggested that a shift in market penetration approach will boost telecommunications providers' performance in Uganda. The findings of a correlation analysis conducted to determine the strength of the relationship between product development strategy and telecommunication firm performance in Uganda revealed a positive and relatively significant relationship between the two variables. The findings also revealed that a unit change in product development strategy might lead in a 0.179-unit change in telecommunication firm performance in Uganda. The participants concurred that their firm advertises via internet, sponsoring programmes as well as exhibitions and that to maximize sales and benefit, the company uses penetration pricing (charging different prices depending on the season/good) and that the participants concurred that their firm has joint operations with other firms to increase market share and revenues and that their firm is a combination of two or more firms jointly working to realize the similar production goals. The participants concurred with the assertion that to keep a high market position, their company's products must be modified and fully revamped and that in their business, new product creation entails a higher level of innovational challenge, with the ultimate goal of expanding our market share. Further, the respondents agreed with the statements that their firm consistently practices product repackaging and that their firm consistently practices product rebranding. The study revealed that market penetration strategy influenced telecommunication firms’ performance positively. The research concluded that managers and shareholders of companies that have yet to implement this strategy should do so in order to stay competitive and profitable in today's volatile business environment. These businesses can broaden into similar markets, resulting in lower costs and a greater number of goods on the market.