The relationship between product diversification and business growth in the banking industry in Kenya: The case of Co-operative bank of Kenya
Numa, Joan Angela
MetadataShow full item record
Businesses in the real world are faced by a challenge to either grow their portfolio or shut down due to the state of competition in many industries. The shareholders also demand value for their investments. Managers in these organizations have to craft and implement strategies that will spur growth. The study focused on growth strategy of Product diversification being used by The Co-operative Bank of Kenya to grow its customer numbers especially in the last ten years up to the present to grow and maximize return to their shareholders. The objective of this study was to determine the relationship between Product diversification, product development and market development to business growth within the Co-operative Bank Group. This was used as an example to other industry players who may not have succeeded in registering as high growth or returns in their businesses. The study adopted a descriptive survey of head of departments working at The Co-operative Bank of Kenya. The population of interest was the customers of the Bank. The type of data collected was both primary data and secondary data. The researcher collected primary data by the use of questionnaires, which contained both open-ended and close ended questions. Secondary data was collected from the bank's financial reports and management reports on performance especially the customer growth strategies in use in the banks. Descriptive analysis which aims at finding out what, where and how of a phenomenon was used mainly to summarize the data collected. The data was presented using statistical measures such as bar graphs, frequency tables and graphical presentations. A regression model was used in predicting the relationship between bank performance and various aspects of product diversification. The descriptive and inferential analysis revealed that bank performance is significantly influenced by product modification/diversification strategies, product development and market penetrationstrategies.