The impact of competition on financial performance: a case study of Agrifoods (pvt) Ltd

Abstract

The research was aimed at accessing the impact of competition on financial performance. It sought to establish how competition affects financial performance on Agrifoods Pvt Ltd as it was experiencing a decline in sales revenue and profits as a result of competition intensity. The research further sought to determine the most effective and efficient ways that could be employed to reduce the effects of competition. The mixed method, descriptive research design and a case study of Agrifoods Pvt Ltd was used in the research. Interviews, questionnaires, primary data and secondary data were used in collecting the data for the research. The presentation and analysis of the data collected was carried out in line with the research objective for study. Pie charts, bar graphs and tables were used in the presentation and analysis of data. The key findings showed that competition causes a decline in market share which results in a decrease in profits and consequently affects the company’s financial performance. It was recommended that Agrifoods must find ways of being competitive and that it can use target costing to achieve competitiveness through charging competitive prices, this would draw customers and resultantly increase in sales revenue and profits.