Consumer Orientation and Competitor Awareness on Firm Performance in the Bottled Water Industry

Purpose: To assess the Influence of strategic positioning indicators namely customer orientation and competitor awareness on firm performance in the bottled water Industry, with sector standards as a moderating variable. Design/Method/Approach: This study adopted a quantitative methodology and cross-sectional explanatory study design of which a sample of 424 licensed bottled water firms were randomly selected. Structured questionnaires were distributed to the managers and a factor analysis was used to reduce the number of variables and establish the underlying constructs, while the analysis of moments of structures was applied to develop theory. Findings: It was found that there exists a positive and significant relationship among consumer orientation and competitor awareness on firm performance. The moderating effect of water sector standards on consumer orientation and firm performance was found to be statistically significant and operates fully or in part as a mediating variable in predicting the influence of competitor awareness on firm performance. Theoretical Implication: This study concluded that to enhance firms’ performance measured in terms of growth, there is need to manage and sustain consumers’ needs based on gender and age preferences, buying behavior as well as conducting market analysis and have internal capability to retaliate. Originality/Value: This study will not only add value to the existing body of knowledge in strategic management, but will also address the application of strategic position to improve firm performance. Research Limitations/Future Research: Since the study was quantitative, there was risk of omitted variable and nonresponse bias, limited access to performance data and lack of previous research on the subject. Future research should extend to other categories of firms which have diverse decision processes and purchase intentions amongst consumers. Paper type: Empirical