dc.description.abstract | The strengths of an organization are grounded in its resources, capabilities and
competencies that help accompany attain competitive advantage based on-superior
efficiency, innovation, and quality and customer responsiveness. The distribution channel
strategy decision is usually based on finding the most profitable way to reach a market.
Successful distribution channel strategy selection, implementation, and management
cannot only help to meet the shopping needs and habits of the target customer’s
efficiently under the cost constraints of the seller; they must also mitigate the
disadvantages caused by distribution channel conflicts such as double marginalization.
The purpose of the study was to determine the influence of distribution strategy as a
source of competitive advantage among commercial banks in Kenya. The study adopted
cross sectional survey design. The population of the study consisted of all forty five
commercial banks operating in Kenya.The study used primary data which were collected
through self-administered structured questionnaires. The data was analyzed and presented
using mean and percentages.
The study found out that commercial banks derive competitive advantage through speed
of offering the service, the added value, unique resources, superior quality of services, the
banks’ product and service diversity, service flexibility, differentiation strategy, cost
leadership strategy andunique corporate culture were adopted. The distribution strategies
used were multiple channel strategy, branch banking strategy and internet banking
distribution strategies, personal computer banking strategy and telephone banking
strategy. The distribution strategies acts as a source of competitive advantage as the
commercial banks combines distribution strategy with other activities in the bank, takes
uses distribution strategies that is cost effective, distribution strategy is crucial in the
eventual acceptance and sales of a new product in the market, distribution strategies are
not a major barrier to the diffusion of new electronic banking technologies and the
distribution strategy award the commercial banks advantage that is independent of its
size. | en |