|dc.description.abstract||In the globalized business, companies require strategic thinking and only by evolving
good business strategies can they become strategically competitive.
In order for
organizations to achieve their goals and objectives, it is necessary for them to adjust to
their environment. The role of strategy is to match external environment with the firm’s
internal capabilities. Organizations exist in the context of complex commercial,
economic, technological, cultural and social world. Competitive environment in the
banking industry is changing rapidly to the extent that
must change by crafting
strategies to move the
retail banking business
forward or face the consequences of
inability to fit in the turbulent environment.
The research objective of this study was to
establish the strategic responses by banking organizations to competition in provision of
retail banking services in Kenya.
The study employed descriptive cross sectional survey
design. This study collected primary data from a target population of all the 43
commercial banks based in Nairobi County.
An interview guide was used where
managers were interviewed.
Qualitative data collected through a
questionnaire/interview guide was analyzed using conceptual content analysis technique.
The responses from different respondents was compared and summarized according to
the objectives of the study.
From the findings,
competitive environment of a
the part of a company's external environment that consists of other firms trying to win
customers in the same market. The interviewees confirmed that in the banking industry,
competitive environment has been based on the following elements. Customer products
and services includes savings and transactional accounts, mortgages, personal loans, debit
cards, and credit cards superannuation, and travel and international payments, evening
banking, largest 24-
hour ATM network, Internet banking, e-
statements, SMS banking
hour Bills Pay service.
The study established
that most of their organization’s
main competitive edge has been based on the huge un-
bankable rural poor in Kenya as
well as the most banks strong financial base and good reputation i
n the financial sector
due to increased profitability. The study established that
comparative advantages in terms of a sound financial base and a better reputation than
. The following conclusions were drawn;
Financial implications is a major
consideration while formulating and implementing the choice of strategies adopted by
while financial resources are determinant in implementation of
The study recommends that business strategies in response to
changing business environment should involve managers in the formulation of such
strategies and give them adequate decision making authority in the implementation of the
respective response strategies||en_US