Competitive strategies adopted by kenya Commercial bank limited in retail banking
Musyoka, Julius Leonard
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Over the years there have been changes in the Kenyan economy and banks have not been spared from the impact of these changes. The aim of this study was to establish strategies used by Kenya Commercial Bank (KCB) to gain competitive advantage in the retail banking. To satisfy these objective data was collected from the senior management, of Kenya commercial bank who were targeted as the principal respondents. A self administered questionnaire was used as major tool of data collection. The aim of the questionnaire was to capture data on strategic responses adopted by Kenya commercial bank and managers’ opinion on what should be done on ensuring that competitive advantage is attained. Descriptive research design was preferred for the presentation of findings. In this case data was evaluated and presented in form of textual/content analysis. The study established that Kenya commercial bank had put some strategies in place to cater for any challenges and threats to the banking industry. In this study, expansion coverage, information technology system of T24 and training of workforce appeared to be a strategic move by the KCB to lay a basis for offering satisfactory services to their customers and this was geared towards facilitating emerging trends in banking industry. The results of this study established that the commercial banks are in competition and their products and services differential is quite narrow hence need for restructuring. The study also revealed that a number of strategic marketing variables are manipulated by banks to respond to a competitive intensity in the banking sector. These include; developing new products, vi market development and market focus. It was concluded that successful organizations must be able, not only to deliver a high level of customer service, but also manage cultural change. The study recommended for a further research to be carried out in other commercial banks on other responses that KCB has made in order to attain competitive advantage. This will then allow banking industry generalization.
SponsorhipUniversity of Nairobi
School of Business