Competitive Strategies Adopted by Multinational Banks in Kenya
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Date
2012Author
Ogutu, M
Nyatichi, V
Type
ArticleLanguage
enMetadata
Show full item recordAbstract
Strategy is a course of action to achieve an objective. Competitive strategy is a business
strategy that is concerned with how a company can gain competitive advantage through an
approach to competing. In spite of the increased competition in the banking industry over the
years multinational banks have maintained their success in Kenya and this study’s main
objective was to determine the competitive strategies that the multinational banks have
adopted in Kenya in order to maintain their advantage in the market. Specifically, it sought to
determine the extent to which the banks adopted Porter’s generic competitive strategies in the
Kenyan market. The study was conducted by a census survey in September 2009 and data was
collected using a questionnaire. The questionnaire had sections that outlined different
strategies and the respondents were supposed to indicate in terms of rating on which ones they
applied in their bank. The data was analyzed using descriptive statistics such as mean scores,
percentages and frequencies. The SPSS tool of analysis was also used. The findings indicated
clearly that for multinational banks to maintain their competitive edge in the market they
have largely adopted broad differentiation strategy. The implication of the study was mainly
on customer service differentiation. Customers’ tastes and preferences tend to change all the
time, especially if offered with better products. This therefore calls for the banks to set up
research department in their organization which can help in understanding customers needs better so that they maintain their customers. The study gives insight regarding the
competitive strategies that give multinational banks a competitive edge in Kenya.
URI
http://journals.uonbi.ac.ke/index.php/damr/http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/13862
Citation
DBA Africa Management Review 2012, Vol 2 No 1, Pp 98-109Publisher
School of Business, College of Humanities and Social Sciences