I INFLUENCE OF VERTICAL INTEGRATION STRATEGY ON SALES PERFORMANCE OF SOFT DRINK MANUFACTURING COMPANIES IN NAIROBI COUNTY, KENYA

Abstract

The primary objective of this study was to examine the influence of vertical integration strategy on the sales performance of soft drink manufacturing firms in Nairobi County, Kenya. In today’s dynamic and increasingly competitive business landscape, firms must implement effective strategies to sustain their relevance and improve performance. Vertical integration, as a corporate growth strategy, allows organizations to control multiple stages of production and distribution processes, potentially enhancing operational efficiency and boosting sales outcomes. However, despite its growing adoption, the direct impact of vertical integration on sales performance, particularly within the soft drink sector, remains uncertain. This study sought to bridge this gap by exploring the extent to which vertical integration affects sales performance. Utilizing a survey research design, data were collected from 141 respondents within the soft drink manufacturing sector. SPSS software version 24.0 was employed for data analysis. The results are expected to offer practical recommendations for soft drink manufacturing companies, further contributing to the growing body of knowledge on vertical integration’s role in enhancing competitive advantage.