Strategic responses by the national bank of Kenya to the dynamic environment
The Banking industry like any other industry faces a dynamic environment. The environment is constantly changing and competition threatens the attractiveness of the industry. To succeed in the long term, banks need to deal with challenges brought about by the dynamic environment. The banks need strategies to compete effectively and out perform their rivals in this dynamic environment. The consumers are always evolving demanding more convenience from the banks. Banks therefore try to outperform each other so as to retain their market share and expand. These banks have to come up with strategies that makes them the most preferred bank. This study sought to establish the strategic responses by the National Bank of Kenya to the dynamic environment. This research was a case study. The study collected primary data from Branch Managers of National Bank of Kenya. The primary data was collected using interview guides. The interview guides were analyzed using content analysis. The researcher experienced challenges such as lack of cooperation from some Branch Managers. The study found out that the National Bank of Kenya had adopted new technologies such as the introduction of the new debit card to minimize fraudulent activities, the introduction of a wide ATM network and the bank has opened up more branches to reach more customers. The bank has also partnered with Pesapoint which has a large network of ATM across the country. The study concludes that National Bank has adopted strategies to respond to the changes in the dynamic environment. These strategies include adopting new technologies, partnering with other companies such as Pesapoint. There are cost implications associated with National Bank coming up with new strategies. National Bank should outsource some services such as training of their employees on new technologies, research and development. This would enable the bank to focus on the core banking business but at the same time be aware of the surroundings.