Competitive Strategies Adopted by International Foreign Owned Banks to Gain Competitive Advantage in the Local Banking Industry. A Case Study of Standard Chartered Bank Kenya Limited
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Date
2016-10Author
Muuna, Francis N
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Strategic planning is a process concerned with formulation and implementation of
organization plans that seeks to exploit and create new and different opportunities by
analyzing internal and external environment of the organization. The objective of this
study was to assess competitive strategies adopted by international foreign owned
banks to gain competitive advantage in the local banking industry. A case study of
standard chartered bank (k).The study adopted a case study research design and data
was collected through an interview guide from 30 senior managers of the company.
The primary data on competitive strategies and business competitiveness at Standard
charted bank was obtained through in-depth interview using interview guide. The data
was analyzed using content analysis. The findings indicate that the major competitive
strategies adopted by the bank included undertaking of market surveys to identify
strengths, weaknesses, opportunities and threats to the business; undertaking of
competitor analysis to find out what competitors are doing in terms of technology,
funding, new products, pricing, customer acquisition and marketing activities; SWOT
analysis to helps top management at Standard charted bank to know how they are
performing and how they can maximize on their strengths, improve on their
weaknesses, exploit the opportunities and mitigate threats to the business; being the
market leader in the implementation of corporate governance principles ,up-to-date
customer relationship management, adoption of enterprise risk management, adoption
latest technologies in banking, operational cost evaluations and effective stakeholder
relationship management. From the findings, majority of the interviewees indicated
that strategic decisions positively influence business competitiveness to a very great
extent. The firm has, increased its market network to other regions in the country,
enhanced quality of services compared to rivals in the industry, adopted effective
strategic responses towards external and internal changes faced by the company and
has experienced high customer satisfaction to a very great extent .This implies that
high levels of performance may result in adoption of competitive strategies. The study
found that the firms achieved competitive advantage over their rivals in the market;
increased profitability, gained high returns due to effecting Competitive strategies and
increased volume of revenues. The study concluded that strategy formulation and
implementation influence organization performance positively to a great extent
resulting to increased organization profitability, business turnover and volumes of
sale. The study recommends that for organizations to perform effectively; clear
strategies that guide its operations should be formulated and guidelines provided to all
the concerned departments in order to eradicate occurrence of compromise. The
study’s limitations included limited time set aside for the research and the limited
scope of study.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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