Factors considered by Kenyan commercial banks in strategic positioning
This study’s aim is to determine the factors considered by commercial banks in Kenya in strategic positioning. The contemporary business market and global influence has heightened competition forcing organizations to review their business approaches and initiatives used to attract customers and fulfill their expectations so as to withstand competitive pressures and to strengthen its market position in the increasingly competitive world. Banks like other organizations employ strategic positioning strategies to maintain their survival in the competitive market, retain their customers and more importantly make profits This study collected data from all the 43 registered commercial banks. The data was collected from a population of 43 banks using questionnaires which had both open and close ended questions and was analyzed using descriptive statistics, mean scores, standard deviations, frequencies and percentages. Strategic positioning was observed to be a key orientation in the banking industry. The study realized that banks employ different strategies so as to survive the competition in the banking market. The processes and decisions made on strategic positioning were found to highly depend on the perceived profitability, competition in the market, future performance of the bank and bank image among other factors. It was noted that most of the banks did not attach much significance to economic implications of their strategies and operations. The study recommends that bank management should take long term strategies that affect positively the performance of a bank. The study also recommends the government to put up structures and ensure that banks do not exploit the consumers as they strive to make profits. It is recommended that similar studies be done in other financial and micro-financial institutions to understand deeply the factors which affect strategic positioning and therefore improve strategic positioning.