| dc.description.abstract | Dynamic environmental changes impact on organizational goals and objectives. This
makes it difficult for organizations to remain viable. To be able to stay ahead of
competition, it's imperative for organizations to continually scan the environment.
This enables the organization to adjust their strategic responses to accommodate the
demands of the environment in which they operate. The appropriate strategic
responses will guarantee a competitive edge.
The last 10 years have witnessed tremendous changes in the Kenyan economy. These
changes have greatly impacted on all industries operating in the country. The nature
of competition within each industry, for instance, has changed such that organizations
have had to find ways of coping with, or pre-empting the competitive forces facing
them. The banking industry has not been spared the impact of these changes.
This research project was a case study of Equity Bank Ltd (EBL). This study had two
objectives, they were; To identify challenges faced by (EBL) in the context of
changing competitive environment, and to document relevant responses made by the
bank and to establish strategic responses of EBL to its changing competitive
environment.
In an effort to meet these objectives the pertinent primary data and secondary data
was collected. Primary data was obtained from personal interviews 'with the
respondents who were responsible for developing the strategic responses, to changing
competitive environment at EBL. These respondents have also been responsible for
overseeing the implementation of these responses. Secondary data was collected from
various sources. The data was then analyzed using content analysis.
This study has established that changing competitive situation in the Kenyan banking
I ndustry has posed many challenges to. EBL. These challenges arose from the
changes in the business environment in terms of economic decline, liberalization,
legislative changes in the business environment, increased level of education, and
technological advancements. The presence of the five forces of competition in the
industry, made management of the changes more challenging. These forces are
v
barriers to entry, rivalry within the industry, threat of substitutes, power of buyers,
and power of suppliers (Porter, 1980)
EBL, according to the research findings has addressed its changing competitive
situation through restructuring, marketing, information technology, and culture
change among other responses. These responses have culminated in a more
competitive EBL making it more prepared to adequately match demands of its
environment.
A cross sectioned survey covering the whole industry can be undertaken to determine
the strategic responses by the banking industry. This would give indications of the
responses made by the banks in Kenya, to their changing competitive situation. The
survey would allow for industry generalization to be made. | en |
