Marketing strategies of textile companies : the case of selected medium and large Ethiopian textile companies

Abstract

The objective of the study was to examine the marketing strategies of Ethiopian medium and large textile companies. The textile sector became the focus of this study because it has performed far below expectation, despite the government‘s unreserved support to the sector and the country‘s comparative advantage in the sector. To attain the stated objective, qualitative research approach with case study design was employed. The cases were selected based on two criteria; production of finished textile products and operation in both local and global markets. Accordingly, nine companies qualified these criteria and all of them were used as cases. The RBV was the theory employed to explain the differences in performances among firms‘ in similar environment. Furthermore, within and cross case analyses were employed to get in-depth understanding and to explain about the marketing strategies of the firms. The major findings of the study indicate that the emphasis given to marketing strategy and the marketing resources and capabilities commitment thereof were found to be so low that the companies seemed to equate marketing strategy with selling strategy. Furthermore, the companies failed to link their marketing enabling environment with their marketing strategy. Similarly, such weak link was reflected between the firms‘ marketing strategy and their market performances. Hence, the marketing strategies of the case companies are so weak that with their current marketing strategy, it is difficult for them to be competent in the local market, let alone in the international markets. Generally, both empirical and conceptual conclusions were drawn from the findings. As a result, the cross-case findings indicate that marketing resources commitment is linearly linked to marketing strategy which in turn is linked to export performances. Therefore, it can be understood that the link between enabling environment and marketing strategy is direct and the link between marketing strategy and marketing performances is linear. Hence, it can be understood from this transitivity that there exists a link between firms‘ enabling environment and their marketing performances.