Procurement as a competitive advantage tool in hotel industry (A Case of Itibo Resort- Kisii County,Kenya)
- Author David Matwa Nyabwari
- DOI
- Country : Uganda
- Subject : Business and Economics
Abstract
Organizations now continually seek new ways to acquire, retain and increase business, because the cost of losing customers is rising. Competitive advantage is the advantage of a firm over its rivals, this advantage allows the firm to generate higher sales and also retain more customers than its rivals. Most firms would agree that the purchasing function should be an integral part of the operation of the enterprise. This study sought to determine the contribution of procurement function as a competitive tool in hotel industry; a case of Itibo Resort. The researcher adopted a descriptive case research design with an accessible population of 37 staff. The study took a census where all the units were considered in research. Data was collected using questionnaires. Data was analysed using descriptive statistical techniques. The research found out that: Purchasing can provide an advantage to the organization with the ability to negotiate lower prices for purchased goods and services. Materials are a source of process variation with a direct impact on the quality of the product. The research further found out that the potential of procurement as a competitive advantage has little been tapped. Based on these findings, this research recommends that Itibo resort adopts strategic sourcing approach to ensure quality materials at the least possible cost to produce products that meet and exceed customer expectations.
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