| dc.description.abstract | Over the last 10 years, there have been many changes in the Kenyan economy.
These changes have had an impact on all industries within the country. The
nature of competition within each industry, for instance, has changed such that
organisations have had to find ways of coping with, or pre-empting, the
competitive forces facing them. The banking industry has not been spared from
the impact of these changes.
This research project was a case study on Kenya Commercial Bank (KCB). The
two objectives of the study were to identify the challenges faced by KCB in the
context of the changing competitive environment, and to document the relevant
responses made by the bank.
In order to meet these objectives, the pertinent primary and secondary data was
collected. Primary data was obtained from personal interviews with the
respondents who were responsible for developing the strategic responses by
KCB to its changing competitive situation. The same research interviewees have
also been overseeing the implementation of these responses. Secondary data
was collected from various sources. The data was then analysed qualitatively.
The study established that the changing competitive situation in the Kenyan
banking industry has posed some challenges to KCB. These challenges arose
from the changes in the business environment in terms of economic decline,
liberalisation, legislative changes, increasing level of education, and
technological advancements. The management of these changes has been
made more difficult by the presence of all five forces that influence the
competitive situation in an industry. These forces are barriers to entry, rivalry
within the industry, threat of substitutes, power of buyers, and power of suppliers
(Porter, 1980) .
KCB, according to the research findings, has addressed its changing competitive
situation through restructuring, marketing, information technology, and culture
change among other responses. These have made KCB more competitive but
have not adequately enabled the bank to fully match its environment. However,
most of the respondents believe that KCB has the necessary capability to
effectively respond to its changing competitive environment.
This study was based on four major strategic response variables. A further study
can, therefore, be carried out on the other responses that KCB has made to
address its changing competitive situation. Alternatively, a cross-sectional survey
covering the whole industry can be undertaken to determine the strategic
responses by the banking industry. This would give an indication of the
responses made by banks, in Kenya, to their changing competitive situation
especially with the increasinq growth, in the number and size, of the non-bank
financial institutions. This, then, will allow for industry generalisations to be made. | en |
