dc.contributor.author | Wakwoma, Winfred | |
dc.date.accessioned | 2013-05-11T09:23:54Z | |
dc.date.available | 2013-05-11T09:23:54Z | |
dc.date.issued | 2007-08 | |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/21852 | |
dc.description.abstract | The banking industry in Kenya faces diverse challenges. One of the
major challenges is the dynamic competitive environment in which
they operate. This has compelled the banks to use various growth
strategies like product diversification to achieve a sustainable
competitive edge. The objective of this study was to establish the
extent to which commercial banks have adopted product diversification
strategies, determine the benefits of employing such strategies and the
challenges faced thereof.
The study was based on a descriptive design; the population included
all the 44 commercial banks operating in Kenya. A census study was
carried out due to a small number of banks. Data was collected by use
of semi-structured questionnaire, which was administered through
drop, and pick and follow up done through email method. The
response rate was 82.5%. Data was analyzed using frequency tables,
standard deviation and results presented in tables.
The research findings revealed that product diversification is adopted
by commercial banks to a large extent. They widely pursued related
diversification with relative variation across banks. The main benefits
cited for product diversification strategy was increase in profitability,
stability of earnings and customer loyalty while the main challenges
faced was increased cost of coordination among various new products. It is recommended that banks undertaking diversification should do so
in the context of explicit policy regarding what the objectives of such
should be in order to minimize pitfalls and increase shareholder value. | en |
dc.description.sponsorship | University of Nairobi | en |
dc.language.iso | en | en |
dc.subject | Banking industry | en |
dc.subject | Diversification strategies | en |
dc.subject | Challenges | en |
dc.subject | Competitive edge | en |
dc.subject | Kenya | en |
dc.title | A survey of the product diversification strategies adopted by firms in the banking industry in Kenya | en |
dc.type | Thesis | en |
local.publisher | School of Business, University of Nairobi | en |