Diversification Strategy Used by Commercial Banks in Kenya as a Means of Gaining Sustainable Competitive Advantage
Abstract
Strategy has been a game which has been put forth by banks to ensure they are ahead of the pack.
Diversification as a strategy has meant that organizations make use of existing resources to
expand the business into new frontiers and expand the profitability of the organization in leaps
and bounds. This study sought to investigate the use of diversification strategy by commercial
banks in Kenya as a means of gaining sustainable competitive advantage. The paper established
that achieving competitive advantage is possible whenever banks roll out new products and
services. However, sustaining competitive advantage calls for the banks to ensure their
diversified products are well thought out and that the decisions and resources employed to arrive
at these products and services are unique, rare and are not easily replicated by competition. The
study further discovered that innovative ventures arrived at by banks through the use of
technology especially when building key alternate channels of business will last and are likely to
result into better and more guaranteed return on investments. This study is anchored on the game
theory, and industrial organization theory
Citation
A Research Project Submitted In Partial Fulfillment Of The Requirement For The Award Of The Degree Of Master Of Business Administration School Of Business, University Of NairobiPublisher
University of Nairobi School of Business