Mobile banking as a strategic response by Equity Bank Kenya Limited to the challenges in the external environment
The study focused on how Equity Bank Limited utilizes mobile banking as a strategic response to the changes in the external environment. Equity Bank is one of the leading commercial banks that started operating after being legally registered in 1984; the bank has progressed from a building society to a Microfinance Institution. It boosts of a large client base and has won many awards in the past few years for its excellent performance in the banking industry. The banks focuses on embracing the latest technology in carrying out their operations efficiently and effectively and also creating products using this up to date technology that are far much superior than those of its competitors. The research intended to bridge a gap in Knowledge, by determining the corporate strategy of mobile banking that Equity Bank will adopt to respond to the challenges in the external environment making it a more successful enterprise than at present in its respective industry. The study will be beneficial to various stakeholders; first, the management at Equity Bank, secondly entrepreneurs willing to venture in the mobile banking industry and thirdly scholars wishing to carry out further research in the industry could find it useful in guiding of the strategies to adapt to the constant changing business environment. The concept of strategic management is thoroughly defined and explained in the literature review of this study. The research also tries to show the formulae of how a business can formulate strategies and strategic responses in order to meet the needs of the constant changing business environment so that the firm can have a competitive edge over its competitors. Additionally it shows business environment and how the various aspects in the environment interact and relate to one another. The research design used in this research was that of a case study. The method of primary data collection that was used is that of an interview guide administered through personal interviews. Due to the interpretive nature of this research, the case study was qualitative in nature since the data collected is qualitative. Content analysis was used in analyzing the in- depth qualitative data collected. For a firm to have a competitive advantage over its competitors it’s should coin a strategic response that will adapt to the constant changing environment. The findings this study focused on the mobile banking responses and marketing responses on the external environment and show how they were used to solve the challenges found in the business environment based on the forces found in the external environment namely; political, economic, x legal and regulatory, social and demographic and information technology. In conclusion that can be determined that the mobile banking industry is a placed in a very dynamic environment due to the stiff competition from rival companies and the constantly changing Information Technology aspects context and contents therein. The marketing strategies to be used to maximize revenue for the firm should be in tune with the constant changing external environment. The firm should strive to have a niche in the market in offering a service that is unique from its rivals to be the market leader in the industry.