Market Development is a strategic management practice that aims at giving firms a competitive edge over other businesses. It focuses on market segmentation. Market focus and market penetration. This study aimed to examine the influence of market demand on the competitiveness of KTDA factories from Region 5. The study was anchored on international competitiveness theory and strategic management theory. A cross-sectional survey research design was adopted. A sample of 109 was obtained from a target population of 162 using a random sampling method. Primary data was collected through online and physical questionnaires. The supervisor and experts were used to examine the validity of the research instrument while Cronbach Alpha was adopted to test for reliability, Cronbach Alpha coefficient obtained was 0.819 which is above the threshold of 0.7. Descriptive statistics consisting of mean and standard deviations were used to summarize data while simple linear regression was used to test significance at 5%. The findings of the study showed that Market Development had a significant positive influence on firm competitiveness (r=0.521; p<0.05; β=0.381; p<0.05). This study thus concludes that market development significantly influences firm competitiveness and hence recommends the need for firms to embrace market development. The results are expected to be beneficial to the KTDA and other tea producers as well as the academia in directing future research.