Competitive strategies adopted by Barclays bank of Kenya ltd in response to competition from micro-finance institutions
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Date
2015-11Author
Gachuhi, Rodney M
Type
ThesisLanguage
enMetadata
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When operating in a turbulent environment firms usually have difficulty in coming up
with the appropriate strategy that will ensure success in their entry mode and operations.
Barclay Bank Limited is facing fierce competition from other Commercial banks as well
as microfinance institution. In order to survive and remain profitable in the Banking
industry, it becomes necessary for Barclays Bank of Kenya to be aggressive in their
search and development of strategies that provide competitive advantage as they step up
defensive strategies to protect their competitive advantages held. Barclays Banks of
Kenya has deployed various competitive strategies, which are fundamental function for it
operation (BBKL, 2014). Empirical studies reveal that firms in different industries adopt
different competitive strategies which are unique in each context. The study sought to
investigate competitive strategies adopted by Barclays Bank of Kenya in response to
competition from microfinance institutions. A case study research design was adopted.
The study employed face to face interview as a primary data collection method. Content
analysis was used to analyse the respondents’ views about competitive strategies adopted
by Barclays Bank of Kenya Limited in response to competition from microfinance
institutions.The study concluded that Barclays Bank of Kenya Limited has been able to
overcome competition from microfinance institutions by maintaining a low-cost
leadership strategy, low-cost manufacturing and a workforce committed to the low-cost
strategy. The study revealed that Barclays Bank of Kenya Limited has introduced
different varieties of the services, in response to competition from microfinance
institutions. The study revealed that Barclays Bank of Kenya Limited has been able to
overcome competition from microfinance institutions by advancing to new geographical
markets countrywide. This has enabled the Barclays Bank of Kenya Limited to maintain
a wide customer outreach. The study recommends that commercial banks in Kenya
should aim at achieving above-average returns over competitors through monitoring the
costs of activities provided and maintaining low charges on services offered. The study
recommends that commercial banks in Kenya should incorporate new technology in the
industry so as to ensure that they improve on quality and efficiency in service delivery.
Publisher
University of Nairobi