Competitive strategies and performance of multinational commercial banks in Kenya
Abstract
The choice of a competitive strategy is critical for the survival and success of any company.
Therefore, successful survival of any bank depends on production, packaging and delivery of
products to those of competitors. Consequently, Multinational banks in Kenya have adopted
strategies aimed at assisting them to maintain their competitive position in the market and
improve their corporate performance. The major objective of this study was to find out the
Competitive Strategies adopted by Multinational Banks and their impact on Performance. Porters
generic strategies and the balanced score card formed the basis upon which the twin objectives
were investigated. Internal and external factors were vital. The results of this study showed that
Multinational banks in Kenya have moderate usage of low-cost leadership strategy with
significant variations in its adoption. The use of cost cutting measures, improved business
efficiencies and maximization of economies were most popular amongst the banks studied.
However there was low extent in avoidance of loss making areas. Due to the competitive nature
of the industry, most banks were aiming at being the low-cost leader in the market to gain a
competitive edge. It is also evident that most of them also use the differentiation strategy
especially introduction of unique features to a product or service and unique products and
services. These were found to be more popular with the multinational banks in Kenya. Their
impact on the performance was varied depending on the perspective. The greatest impact was on
internal business processes and customer perspective. The strategies adopted had marked impact
on strengthening internal control and higher levels of customer satisfaction. On financial
perspective the greatest impact was on improving profit levels of the banks. The impact on
learning and growth was not significant.
Sponsorhip
The University of NairobiPublisher
School of Business