Responses by Barclays bank of Kenya limited to challenges of competitive forces
Abstract
This study was set out to investigate responses by Barclays Bank of Kenya limited to
challenges of competitive forces. Competition in most global product markets is intense.
The turbulent marketplace and the competitive forces create many opportunities and
challenges. Often managers define challenges by competitive forces too narrowly as if it
occurred only among today’s direct competitors. Yet competition for profits goes beyond
established industry rivals to include four other competitive forces namely customers,
suppliers, potential entrants, and substitute products. The extended rivalry that results
from all five forces defines an industry’s structure and shapes the nature of competitive
interaction within an industry. The strongest competitive force or forces determines the
profitability of an industry and becomes the most important when formulating strategy.
The research adopted a case study design, which is most appropriate in the investigation
of the responses by Barclays Bank of Kenya Limited to challenges of competitive forces.
The study selected 15 informants as heads of departments at Barclays Bank of Kenya
Limited using simple random sampling.The heads of departments were subjected to the
study through an interview guide which collected primary data.Secondary data was
collected from published reports, the banking industry’s publications, periodical and
newspapers.
The informants indicated that the greatest competitive force facing Barclays Bank of
Kenya Limited was the environment. Other competitive factors were identified as capital
adequacy and cost of the funds, training of the employees, interest rates, product range,
innovation, technology, customer service, branch network, image, level of service,
location, target market, competitors, legislation, and motivation. To respond to these
challenges Barclays Bank of Kenya Limited has implemented a superior operating
system and platforms through parental support where it was needed. They have increased
their branch network so as to reach more customers in the market. Internal changes the
bank has adopted to respond to challenges of competitive forces in the market include
staff training, rotation and rewarding systems for better performance to motivate the staff
and be able to retain the best in the market. There has been the adoption of an objective
outlook on deals on a case by case basis even for high risk sectors.
Further research should be undertaken to research on responses to the challenges of
competitive forces in other sectors of the economy such as tourism coffee, tea, fisheries
and even services such as education and construction. The study should also be extended
to establish the responses to the challenges of competitive forces in other related sectors
in the industry such as the microfinance institutions. Research should be undertaken to
determine what strategies other companies in different related industries use to combat
the challenges of competitive forces.
The study was limited in that it included respondents from one sector and conclusions
drawn may not be representative of other industries. It also captured members of the one
focus group excluding other important stakeholders from the study.
Sponsorhip
University of NairobiPublisher
School of business