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Differentiation Strategy and Performance of Long-distance Bus Companies in Keny

Safe transport is an essential element to the development of an economy of any country. Transport enables 
movement of people, services and goods, from one location to another one. In Kenya, majority of the population 
who travel beyond three hundred (300) kilometres commonly use long distance bus service. Travelling for a long 
distance in a poorly maintained bus can be quite uncomfortable. Some buses are normally over-packed with hard 
seats, poor ventilation, overly slow or overly speedy and poor sanitation. Consequently, long distances need the 
most comfortable travelling medium to at least not get over exhausted. In product differentiation strategy, a firm 
seeks to be unique in its product offing compared to its competitors. This study sought to contribute to 
knowledge by assessing the influence of differentiation strategy on performance of long-distance bus companies 
in Kenya. Porter’s generic strategies are the main model anchoring the study. Cross-Sectional survey was used as 
research design. The population of the study consists of fifty one (51) registered and licensed long distance bus 
companies in Kenya. Primary and secondary data were collected by the use of a structured questionnaires and 
review of regulatory bodies’ websites and availed documents. Correlation and regression analyses were used to 
test hypotheses. Not all organizational performance determinants were included but balanced score card was 
appropriately used to reflect non-financial and financial indicators. Results show that safety strategy has the most 
significant influence on performance of long-distance bus companies in Kenya. This was followed by comfort 
and reliability respectively. The significance of safety measures when it comes to transporting people is quite 
critical. The central recommendation that the study offers as impetus to strategic management body of 
knowledge, transport companies and policy makers is the need to consider safety measures as the most essential 
differentiating features in transport management in order to win the confidence and loyalty of passengers thus 
enhance performance. The major limitation of this study is that primary data was gathered from three (3) bus 
company managers only per company. However, additional secondary data was used to validate primary data 
hence reduce common bias.