Competitive strategies adopted by faulu micro-finance bank, Kenya
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The objective of the study was to determine the competitive strategies adopted by Faulu microfinance bank, Kenya to gain competitive advantage in the banking industry. The banking industry has experienced a rapid growth in terms of profits, deposits and revenues in the recent past. This trend has triggered a lot of competition in the banking industry. The study used the case study approach. An interview guide was used as a data instrument to collect primary data from the targeted four interviewees in each department. Interview guides were administered to Heads in specific department in Faulu microfinance bank, Kenya in the departments of finance, marketing, operations and research and development. In this case data was evaluated and presented in form of content analysis. The study found out that Faulu microfinance bank Kenya has employed cost leadership, focus strategy, strategic alliance and differentiation competitive strategies The researcher recommends that Faulu Kenya should focus on developing and implementing effective strategies that will enable the bank survive in the competitive environment. In addition, the bank should focus on greater development of the bank’s intermediary role so that it can provide a more complete set of financial services to micro-enterprises; improve the Management Information System; develop simple but comprehensive processes and instruments to guide its lending operations; identify alternative forms of collateral and ways to incorporate that collateral into its lending schemes; and devise ways to access funds from the financial markets. The study is limited to Faulu Microfinance bank and it is a platform for further studies that can study all the microfinance banks.
University of Nairobi