Analysis of growth strategies by the Kenya Commercial Bank Ltd
Strategic growth is vital to all organizations in the 21st century, therefore for a company to survive in today’s competitive world they need to spread their wings and look beyond their normal way of doing business and begin to embrace growth. Kenyan banks have not been left behind in driving their growth agenda and this has led them to grow into different countries for different reasons. Some banks have decided to grow into Tanzania first; while others opted to start with Sudan, others Uganda and others Rwanda. How Kenyan banks determine which countries they should grow into first and the different reasons that lead them to start operations in one country and not another is still a mystery. On the basis of understanding this phenomenon, this research investigated the different reasons that led to KCB’s growth strategy in each country it is operational in. In trying to achieve the objectives of the research, the study adopted a case study approach where in depth interviews were conducted with the top cream management in the organization using an interview guide. The research found out that the reasons for KCB’s growth were; increased profits, growth of customer base / market share, growth of bank deposits, increase revenues, stronger corporate image, following existing customers, increase investor confidence, increase shareholder value, growth of its balance sheet, increase shareholder base, building a stronger brand name, presence of virgin market in other countries, favorable political environment, ego, to be in line with its vision, maintain their position of being the largest branch network, enhance competitiveness and large unbanked market. The study also found out that KCB indeed had different reasons for growing into Tanzania, Uganda, Sudan and Rwanda. The study also made a number of recommendations which KCB should adopt to remain competitive in the market and continue with its growth strategy. These recommendations included focusing on both home market and international market growth so that neither suffers and that the bank should focus on cost management in order to grow further. According to Keegan, (1998), the bank should focus on market leader strategy where a company wants to always remain number one. KCB boasts of having the largest branch network among other banks in Kenya and it should therefore defend and protect this position in order to remain ahead of competition.