Effectiveness of Competitive Strategies Adopted by Investment Firms in Kenya

Abstract

The investment firms in Kenyan compete in marketing various financial services and products. Investment firms' market development is level because of monetary hardships that have kept on influencing the venture firms, combined with high assessments, solid rivalry from other venture firms. There is no known study in Kenya which has ever been done on the Competitive strategies embraced by investment firms and their adequacy in Kenya. This study tried to fill this gap in information by noting the question: what are the competitive strategies adopted by the investment firms in Kenya and their effectiveness? The proposed study embraced a descriptive research design. The objective population for the investigation was the administrative staff working in investment firms in Kenya. This investigation gathered essential information utilizing semi-structured questionnaires. The closed ended questions were utilized to gather quantitative information while the open ended were utilized to gather the subjective information. The filed questionnaires were checked for completeness, edited and coded to facilitate entry into a computer for analysis. The entered data was analyzed using descriptive statistics such as the mean and standard deviation. This was achieved by the use of a computer software tool to tabulations, percentages, and measures of central tendency. The study found that differentiation strategy such as capacity for innovation, financial inclusion strategies and training employees were implemented to a great extent. Diversification together with marketing and advertising (cost leadership strategies) were adopted to a great extent, the market focus strategies adopted by investment firms to survive in the competitive firms were increasing market share and enhancing customer loyalty. Further, the study established that differentiation strategy which comprised of innovation capacity and financial inclusion strategy were effective to a great extent. Cost leadership strategy through product diversification and marketing together with advertising strategies were effective to a great extent. Market focus strategy which involved improving relationship among the workers and increasing customer base were also effective to a great extent hence the researcher recommends for adoption of these strategies by investment firms.