Effect of competitive strategies adopted by NIC bank limited on performance of retail banking
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Date
2015-11Author
Wanjala, Justin M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The confluence of market, societal and technological possibilities makes the present
times markedly different for banks than the past. Banking has gotten progressively
‘better’ over the years, but slowly. It is a question of whether this pace of improvement
could happen faster, how that could happen and what consequences would be. The
banking industry in Kenya has witnessed immense competition with emergence of
Mobile money services like Mpesa,Equitel, Yucash, Orange money, deposit taking micro
finance being converted into fully fledged bank and improvement of technology used to
render services; it calls for very competitive strategies to be put in place to ensure
survival of banks. To survive in the market, the review of strategies has to be done
consistently to ascertain to understand the effect of these strategies on the performance of
organisations. This study was set out to investigate the effect of competitive strategies
adopted by Nic Bank limited on the performance of retail banking. The study adopted
case study design to carry out this research where an interview guide targeting senior
managers of the bank was employed to collect data. Both primary and secondary data
were sourced and used for analysis. The findings were analyzed by use of content
analysis. The study revealed that Nic Bank was using majorly a mix of porter’s generic
strategies and to some extent it had started to employ collaborative strategies to penetrate
the Kenyan market. The study recommended the enhanced use of market focus strategy,
collaborative strategy and expansion into untapped market to be able to increase its
market share and be able to give convenience and proximity to the clients. The researcher
recommended that further research should be done to determine performance of other
banks based on strategies they have put in place to see if findings will be the same. The
researcher recommended a similar study should be done in all banks to arrive at
generalization as it is always difficult to summarize case studies into general propositions
and theories. The study established that the strategies employed by Nic Bank have really
worked for the bank and more focus should be put on collaborative strategy to enable the
growth of the brand image.
Publisher
University of Nairobi