Growth strategies and the competitive advantage of commercial banks in Kenya
Abstract
This study sought to establish the level of competitiveness that Kenyan commercial banks
that adopted growth strategy. The objectives of the study were to establish the influence
of the strategies on competitiveness of commercial banks in Kenya and establish the
challenges affecting the implementation of growth strategies in commercial banks in
Kenya. The study adopted descriptive survey design. Questionnaires were used as
instruments of data collection. Growth strategies were identified as the independent
variables and competitiveness of commercial banks as dependent variables. Data
obtained from each of the study instruments were then statistically analyzed using an
appropriate data analysis technique. This study targeted commercial banks in Kenya
focusing on one marketing specialist from each of the forty five banks which provided
the study population and sample. The study found out that there is a relationship between
growth strategies adopted by banks in Kenya and their levels of competitiveness. It found
out that there was strong correlation coefficient between competitive advantage and
Market penetration strategy with significant at 99% whose value was 0.003 which is less
than 0.05. The study also found strong positive correlation between competitive
advantage and Market development at 95% with a correlation coefficient of 0.685. This
also concurred with the expectation that firms that use Market development strategy have
competitive advantage over the other firms. The correlation between competitive
advantage and Product development strategy was also found to be strong positive as
shown by correlation coefficient of 0.523; this was significant because 99% which was
less than 0.05. This also concurred with the study expectation that Banking institutions
that use Product development strategies have competitive advantage over the others.
These strategies by commercial banks require firms to put necessary policies in place for the strategies to succeed. This will help in the formulation and implementation of such
strategies. Staff and management commitment should be achieved so that full support of
the strategy can lead to its success.
Citation
Master Of Business AdministrationPublisher
University of Nairobi