Analysis of factors influencing competitive advantage in organizations in the financial sector in Kenya: a case of standard chartered Bank Kenya Limited
This project analyzed five factors that influence the competitive advantage in organizations within the financial sector in Kenya using a case study of the Standard Chartered Bank in Kenya. The banking financial sector has grown tremendously in Kenya resulting to fierce competition and all the banks are always changing their strategies to stay ahead of the game. The factors analyzed were training, service provision, technology, product innovation and leadership. Descriptive research design was used. The target population was 900 staff members at the headquarters in Nairobi as per data provided by the human resources department of Standard Chartered Bank in 2011. The respondents were 90 staff who were drawn from the head office departments. The sample was randomly selected. Self-administered questionnaires were used to collect data. The data was analyzed using both descriptive statistics and inferential statistics. The study found out that service provision was considered key in attaining competitive advantage as it was rated highest of the five. This was further supported by the fact that most respondents stated that they frequently discuss service issues in their departmental meeting. Technology was rated second from service provision with 96 % of the respondents stating that over 80% of their operations were automated and further indicating that they felt that the automation help in meeting customer need and thus ability of the bank to attain competitive advantage. The study also revealed that product innovation help attaining competitive advantage of Standard Chartered Bank in the banking industry Kenya as 81.2% rated product innovation as the third factor. However, there was mixed reactions on training and leadership as to whether they influence the competitive advantage of the bank. The respondents rated both middling 55% on their influence on competitive advantage of Standard Chartered Bank Kenya Limited. The study recommends that service provision; technology and product innovation playa vital role in creating competitive advantage in the financial sector and therefore the management should place more emphasis on these three factors. There is also need for further studies to be carried out with other banks in Kenya and also other sectors of the Kenyan economy in line with government's vision 2030.