Factors Considered by Kenyan Commercial Banks in Strategic Positioning
Abstract
This study’s aim is to determine the factors considered by commercial banks in Kenya
in strategic positioning. The contemporary business market and global influence has
heightened competition forcing organizations to review their business approaches and
initiatives used to attract customers and fulfill their expectations so as to withstand
competitive pressures and to strengthen its market position in the increasingly
competitive world. Banks like other organizations employ strategic positioning
strategies to maintain their survival in the competitive market, retain their customers
and more importantly make profits This study collected data from all the 43 registered
commercial banks. The data was collected from a population of 43 banks using
questionnaires which had both open and close ended questions and was analyzed
using descriptive statistics, mean scores, standard deviations, frequencies and
percentages. Strategic positioning was observed to be a key orientation in the banking
industry. The study realized that banks employ different strategies so as to survive the
competition in the banking market. The processes and decisions made on strategic
positioning were found to highly depend on the perceived profitability, competition in
the market, future performance of the bank and bank image among other factors. It
was noted that most of the banks did not attach much significance to economic
implications of their strategies and operations. The study recommends that bank
management should take long term strategies that affect positively the performance of
a bank. The study also recommends the government to put up structures and ensure
that banks do not exploit the consumers as they strive to make profits. It is
recommended that similar studies be done in other financial and micro-financial
institutions to understand deeply the factors which affect strategic positioning and
therefore improve strategic positioning.
Citation
Aloo,Andrew O.;November,2013.Factors Considered By Kenyan Commercial Banks In Strategic Positioning.Publisher
University of Nairobi School of Business