Strategic Management Intensity And Competitive Advantage Of Commercial Banks In Kenya
Strategic management in the banking sector demand that organizations should have effective systems in place to counter unpredictable events that can sustain their operations and minimize the risks involved through innovations. Stiff competition has continued to be experienced by commercial banks thus necessitating that they re-package their services and products with the sole purpose of satisfying their customers as well as retain their market share. In Kenya it is not clear how strategic management intensity influences competitive advantage. The purpose of this study was to determine the intensity of the strategic management practiced by commercial banks in Kenya and to determine the relationship between the intensity of strategic management practice and competitive advantage in banks. This research problem was studied through the use of a descriptive survey design. The target population of this study was the 44 commercial banks in Kenya. Primary data was collected using a questionnaire while secondary data was obtained from annual reports of the companies. Quantitative data collected was analyzed by descriptive analysis. Tables and figures were used to summarize responses for further analysis and facilitate comparison. The study found that explicit tracking of the policies and tactics of competitors are used by the firms to gather information about their business environment. It was deduced that shifts in economic conditions are easily changed as well as modifications in supplier strategies and the emergence of a new technology. Considerable emphasis are placed on managing business strategies and firm investments at the top management level and board of director’s level. Measuring performance against subjective strategic criteria important in making sure that the firm’s employees and business strategies meet predetermined objectives and attain competitive advantage. The study recommends that the commercial banks should pay attention to various forces of the environment in which they operate in by looking at such issues like tracking of the policies and tactics of competitors. Commercial banks need to focus on issues of planning flexibility which involve shifts in economic conditions. Commercial banks also need to employ more resources to enhance positive contribution towards gaining competitive advantage.