| dc.description.abstract | The banking industry in Kenya has achieved tremendous growth over the past years
with most of the banks making abnormal profits in the industry. With heightened
competition, commercial banks are forced to compete on innovation and this is where
the application of blue ocean strategy can be useful. The objectives of this study were
to establish the application of blue ocean strategy among banks and to identify factors
influencing the application of blue ocean strategy among commercial banks in
Kenya.This was a cross-sectional survey of commercial banks in Kenya. The
population of this study was 43 commercial banks currently registered by the Central
Bank of Kenya as at 30th June 2013 and all were targeted from which 25 banks finally
participated. Primary data was collected using questionnaires. The questionnaires
were administered by the researcher to the general managers in each of the banks.
Since most of the data collected in this study were quantitative, the data was analysed
using descriptive statistics (frequencies, mean, and standard deviation). The study
found that the factors that should be reduced well below the banking industry’s
standard were time taken on queues, operating costs, and overheads and indirect costs.
The study also found that a number of factors were taken for granted by the banking
industry and should be eliminated and included costly activities, operational activities,
and programs. It was also found that the factors which the respondents felt that
needed to be raised above the banking industry’s standard were customer satisfaction,
improving customer service, quality and new products. The results also showed that
the factors which should be created in the banking industry which have not been
offered before included better customer relationships, new products, customer
satisfaction, long banking hours and governance. The study found that the factors that
influence application of Blue Ocean Strategy in banks were the need to create and
capture new demands (84%), breaking the replacement of the value cost (72%), and
integration of total system activities of the organization (60%)The study concludes
that Blue Ocean Strategy is a concept that is known to most banks and the banks are
aware of what issues to eliminate, reduce, raise, or create. It is also concluded that a
number of factors affect the application of Blue Ocean Strategy in banks. The study
recommends that banks should take cognizance of the factors identified here if they
need to do away with competition and make it irrelevant. | en |
