Effect of Blue Ocean Strategies on Competitive Advantage of Microfinance Institutions in Kenya

Abstract

The purpose of this study was to find out the impact of blue sea systems on competitive advantage of microfinance foundations in Kenya. The study utilized a descriptive survey research outline. The population grasped 52 microfinance foundations which were individuals from Association of Microfinance Institutions (MFIs) as at December 2015. The analyst utilized a questionnaire as the essential information gathering instrument. Descriptive statistics was utilized for the information examination. In addition, multiple regression analysis was utilized to set up the relations between the free and ward factors. Frequency tables and other graphical presentations were utilized to introduce the study discoveries. Numerous relapse was utilized to build up the impact of the free factors on the reliant variable. The study found that 64.9% of the variety in the competitive advantage of the microfinance foundations in Kenya was clarified by; separation, minimal effort technique, uncontested market space, opportunity and dangers and esteems development system. the study inferred that esteem advancement had the best impact on the competitive advantage of microfinance establishments in Kenya took after by ease and separation while opportunity and hazard methodology had the slightest impact upper hand of microfinance organizations in Kenya. The study suggested that operation chiefs in microfinance foundations ought to give careful consideration to consumer loyalty, since survival in this dynamic environment is exceedingly subject to capacity to hold a bigger client base contrasted with contenders. Microfinance establishments administration ought to likewise contribute more on item separation as it could be utilized as a noteworthy upper hand apparatus against rivals in the business since it is equipped for ensuring survival. The microfinance institutions should also adopt differentiation strategies that address needs of specific market segments. To achieve this, clients’ needs must be identified by way of continually seeking customer feedback and promptly addressing them. Microfinance institutions should also continue investing in innovative delivery channels because they are able to control their costs much better as compared to investment in brick and mortar or physical branches. Future research should replicate the study in other subsectors of the financial sector including banks and insurance companies.