Growth strategies and the competitive advantage of commercial banks in Kenya
This study sought to establish the level of competitiveness that Kenyan commercial banks that adopted growth strategy. The objectives of the study were to establish the influence of the strategies on competitiveness of commercial banks in Kenya and establish the challenges affecting the implementation of growth strategies in commercial banks in Kenya. The study adopted descriptive survey design. Questionnaires were used as instruments of data collection. Growth strategies were identified as the independent variables and competitiveness of commercial banks as dependent variables. Data obtained from each of the study instruments were then statistically analyzed using an appropriate data analysis technique. This study targeted commercial banks in Kenya focusing on one marketing specialist from each of the forty five banks which provided the study population and sample. The study found out that there is a relationship between growth strategies adopted by banks in Kenya and their levels of competitiveness. It found out that there was strong correlation coefficient between competitive advantage and Market penetration strategy with significant at 99% whose value was 0.003 which is less than 0.05. The study also found strong positive correlation between competitive advantage and Market development at 95% with a correlation coefficient of 0.685. This also concurred with the expectation that firms that use Market development strategy have competitive advantage over the other firms. The correlation between competitive advantage and Product development strategy was also found to be strong positive as shown by correlation coefficient of 0.523; this was significant because 99% which was less than 0.05. This also concurred with the study expectation that Banking institutions that use Product development strategies have competitive advantage over the others. These strategies by commercial banks require firms to put necessary policies in place for the strategies to succeed. This will help in the formulation and implementation of such strategies. Staff and management commitment should be achieved so that full support of the strategy can lead to its success.