Strategies employed by Barclays Bank of Kenya to achieve competitive advantage

Abstract

Competitive advantage is an advantage over competitors gained by offering consumers greater value that justifies higher prices. It gives a company an edge over its rivals and an ability to generate greater margins for the firm and its shareholders. This can be achieved through employment of effective strategies implemented efficiently. This study explored the challenges facing by Barc1ays Bank of Kenya and the strategies it employs to achieve competitive advantage. Being the leading bank in Kenya in terms of asset base, capitalisation and profitability, it was of interest to do an in-depth analysis of the bank's operations.

The study was conducted using a case study design to gain in-depth knowledge. Primary data was collected using semi-structured interview guides administered through one on one interviews. Secondary data was used to enrich understanding of the bank and the industry as a whole. Data was then analysed using content analysis technique and presented through tables and figures.

The empirical finding of this study is that Barc1ays Bank of Kenya employs differentiation strategy aimed at achieving competitive advantage by offering better products or services at the same price or enhancing margins by charging a premium price, often to reflect the higher production costs and extra value added features provided to the customers.

The study suggests further research on all top performing companies in East Africa to gain an understanding of their strategies for success. This will enrich the academic understanding of strategy as well as the practical application of strategy in organization success.