Competitive strategies adopted by K-rep bank in Kenya
The banking industry has experienced a rapid growth in terms of profits, deposits and revenues in the recent past. This trend has triggered a lot of competition in the banking industry. This study sought to establish the competitive strategies adopted by the K-Rep bank and the challenges faced in adopting such strategies. The study used the case study approach. Interview guides were used as a data instrument to collect primary data from the targeted four respondents in each department. Interview guides was administered to Heads in specific department in K-Rep Bank in the department of operations, credit and K-Rep Bank Foundation Group. Specifically, the study targeted 4 respondents in each department. In this case data was evaluated and presented in form of content analysis. The study found out that K-Rep bank has employed both cost leadership and differentiation competitive strategies. In addition, the study found out that there are a number of challenges that K-Rep Bank face in its efforts to adopt competitive strategies that will make them respond well to the competitive environment. Among the challenges outlined in this research are high expectations from customers, high rate of competition, government rules, bureaucracy, marketing and high cost of operation. The researcher recommends that K-Rep Bank should focus on developing and implementing effective strategies that will enable the bank survive in the competitive environment. In addition, the bank should focus on greater development of the bank’s intermediary role so that it can provide a more complete set of financial services to micro-enterprises; improve the Management Information System; develop simple but comprehensive processes and instruments to guide its lending operations; identify alternative forms of collateral and ways to incorporate that collateral into its lending schemes; and devise ways to access funds from the financial markets.