Strategies adopted by Kenya commercial bank group ltd to gain competitive advantage
Abstract
Strategy is key in developing competitive advantage. Competitive advantage is key for
success of organisations. Different organisations use different strategies to achieve
competitive advantage derived from their capabilities. The Kenyan banking industry has
been affected immensely by the business environmental changes such as
technological innovations, globalization, privatization, implementation of economic
reforms, increased customer demands and liberalization of both domestic and foreign
markets that has led to increased competition, forcing banks to adjust their strategies
in order to survive. It has had a drastic change where many non-banking financial
institutions such as microfinance institutions (MFIs), building societies and Saccos
are converting into fully fledged banks. This has led to a tremendous increase in the
number of banks to the current 43 thereby setting in increased competition. KCB has
risen to becoming the best performing bank in the banking industry in Kenya
surpassing other banks in the industry that had consistent performance over the years.
This study was therefore aimed at understanding what strategies KCB has adopted to
gain competitive advantage over its peers in the Kenyan banking industry. The study
adopted a case study design to carry out this research where an interview guide targeting
5 senior managers of the bank was used to collect data. Both primary and secondary data
were sourced and analyzed through the Content Analysis method. The study revealed that
KCB has adopted strategies such as invention and innovation of new products and
services, quick and convenient sales and channels for more coverage, aggressive
brand and targeted marketing, excellent customer experience, reliable and agile
technology and systems, employee training and development, good corporate
governance, risk management and customer centric operations to gain competitive
advantage in the Kenyan banking industry. The study recommended that the bank
should focus more on utilizing its large asset base more efficiently to generate higher
profits than it is currently making. Through it operations, it should further improve
efficiency in the delivery of its product and services to its customers, and reduce costs
hence achieving higher profits as well. The major limitation of the study was that some
respondents withheld some information they considered confidential and sensitive on
the fear that it can leak to their competitors.
Publisher
University of Nairobi
Description
Thesis