Competitive strategies applied by fund managers in Kenya
Having competitive strategies is necessary for a firm to compete in the market. Firms must identify their position relative to the competition in the market. The objective of this study was to identify competitive strategies and challenges faced by the fund managers in Kenya. All fund managers were sampled for the study and questionnaires were administered. Secondary data was obtained from various company records to supplement the primary data. Data collected was quantitative in nature and were analyzed using percentages, frequencies, cross tabulation, mean scores and standard deviation. Analyzed data was presented in graphical and tabular form. This study found that most fund managers were offering similar products with a higher concentration on equity funds. All fund managers reported regularly to clients though the reporting periods deferred. Majority of the firms had websites for clients to access information. Newspapers were the most applied promotional tool followed by magazines, door to door and radio with bill boards and posters, social networks, television and professional journals being the least applied. The fees levied by fund managers were not significantly different hence none of the firms could be identified as a distinct cost leader in the industry. Fund managers were seen to focus on different market segments. The challenges faced by the industry were related. Low investor knowledge was identified as the major challenge. The industry also cited stiff competition as another main challenge. The study concluded that none of the firms was a distinct market leader in application of the competitive strategies. Fund managers applied a mix of competitive strategies which were in line with the Porter's (1980) generic strategies.