Narrow Market Business Level Strategies and Performance of Micro and Small Enterprises: A Case of Salons and Beauty Spas in Nairobi County, Kenya

Despite the fact that empirical research on performance and narrow market business level strategies have been widely conducted, there is no consensus on the effect of focused cost and focused differentiation on micro and small enterprises performance, necessitating this study to add to the body of knowledge. The purpose of this study was to determine the influence of generic narrow marekt strategies on the performance of micro and small businesses, with a focus on salons and beauty spas in Nairobi, and more specifically to: determine the impact of focused cost leadership strategy and focused differentiation strategy on the performance of salons and beauty spas in Nairobi County The study employed a descriptive research design, with the 279 salons and beauty spas in Nairobi County serving as the study's target population and a sample size of 165 participants obtained. A structured questionnaire was used to collect data, which was analysed quantitatively. The study concludes that at 5% level of significance; focused cost strategy has positive significantly moderate influence on performance of micro and small enterprises ,and focused differentiation strategy has moderate positive significant effect on performance of micro and small enterprises. The study recommends that micro and small enterprises should sustain expertise and ensures creativity as well as continuous improvement and devise mechanisms for crafting competitive affordable and attractive rate in addition to strategies for premium products in a niche narrow market.