Effect of Competitive Strategies on the Performance of the Banking Industry in Kenya
The purpose of the study was to determine the effect of competitive strategies on the performance of the banking industry in Kenya. The study was guided by the following specific objectives; to critically establish the effect of investment strategies on the performance of commercial banks, to investigate the effect of expansion strategies on the market share of the commercial banks in Kenya and to find out the effect of retrenchment or cut back strategies on the bank‟s financial performance. The study used descriptive survey design as it sought to describe data and characteristics about the population or phenomenon being studied. The target population for this study was senior managers from each of the 42 commercial bank in Kenya. Both primary and secondary data were collected for the purpose of this study and analyzed using descriptive statistics. Data collection was through self-administered questionnaires. From the study findings, it was clear that investment strategies such as reputation on quality of products, competitive rewards, efficiency and reliability, adopting modern technologies, protective and rationalizing diversification do affect the performance of commercial banks. In addition, the study further recommends that the banking sector should focus on more effective strategies not because other institutions are engaging in, but only if the decisions will benefit the bank positively. The researcher further recommends a study be carried out on the effect of competition on the performance of commercial banks in Kenya.
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