Influence of Differentiation Strategies on Competitiveness of Family Bank Ltd, Kenya

Abstract

Purpose –The aim of the study was to identify how differentiation strategies influence the competitiveness of an organization hence giving it a competitive advantage. Sought to identify to what extend family bank has utilized differentiation strategies to remain competitive in the market and increase profitability. Methodology-The study was conducted using a case study research design which would give and in-depth investigation and would be more relevant. The study collected information from five informants identified using an interview schedule. Findings-concerning competitiveness, most respondents were of the opinion that there was a general increase in competition in terms of profitability which measured distinction of Family Bank activities from those of competitors that affected the bank’s competitive position. Majority agreed that customer responded to differentiation activities by the Bank most agreed that competitiveness was sustainable. Conclusions-In regards to competitiveness, the bank differentiated its products to meet customer orientation and convenience and thus attracting more customer’s .Also the bank had averagely covered the differentiation practices and this led to an average competition by the bank in different sectors.