Competitive Strategies and Performance of Commercial Banks in Mombasa County, Kenya

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dc.contributor.authorNyachwaya, Joseph Mariga
dc.contributor.authorRugami, James Maina
dc.date.accessioned2020-09-11T15:46:13Z
dc.date.available2020-09-11T15:46:13Z
dc.date.issued2020
dc.descriptionA research article published in International Journal of Business Management, Entrepreneurship and Innovationen_US
dc.description.abstractCommercial banks in Kenya and especially Mombasa County are facing firm rivalry demanding the use of competitive strategies so as to improve their performance. Most of the commercial banks are deliberating on ways to enhance their performance, with competitive strategies being one of them to arrive a market and afterwards make sense of and ensure its aggressive position. Therefore, this study aimed at establishing the effect of competitive strategies on the performance of commercial banks in Mombasa County. The specific objectives were to determine the effect of cost leadership strategy, differentiation strategy and focus strategy on the performance of commercial banks in Mombasa County. The study was anchored on the theory of resource-based view, strategic balancing and game theory. A descriptive research design was employed in this study. The target population of this study was 280 commercial banks staff in Mombasa County. The sample size was eighty-four after adopting a stratified random sampling technique to select 30% of the target population. The study made use of primary data collection using questionnaires. The data was analyzed using the Statistical Package for Social Sciences (SPSS) Version 24.0 and presented using tables. The study established that despite the challenges in implementation, competitive strategies are very important for banks to remain competitive in the market. The study further concluded that understanding the market structure is a key determinant for the successful implementation of competitive strategies. Banks following a cost leadership strategy realize statistically significant superior performance compared to those that pursue broad differentiation and focus strategy which reports above-average returns. The researcher highly recommends that commercial banks consider shifting more of their focus on the cost leadership strategy in order to realize superior performance. To succeed at offering the lowest price while still achieving profitability and a high return on investment, commercial banks are recommended to operate at a lower cost than its rivals, this could be possible through some fairly unique capabilities to achieve and sustain their low-cost position. The study also recommends strategy planners to integrate and embrace the differentiation strategy which will enable them to differentiate in various methods such as new technology, brand image, design, network customer service or the number of features. Further, commercial banks are recommended to centre on the existing markets and products or services; they can create competitive edge by getting the best mix between existing products and existing markets.en_US
dc.identifier.citationNyachwaya, J., & Rugami, J. (2020). Competitive Strategies and Performance of Commercial Banks in Mombasa County, Kenya. International Journal of Business Management, Entrepreneurship and Innovation, 2(1), 65-74. https://doi.org/10.35942/jbmed.v2i1.109en_US
dc.identifier.issn2707-8027
dc.identifier.other10.35942/jbmed.v2i1.109
dc.identifier.urihttps://doi.org/10.35942/jbmed.v2i1.109
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/20311
dc.language.isoenen_US
dc.publisherInternational Journal of Business Management, Entrepreneurship and Innovationen_US
dc.subjectCost Leadership Strategyen_US
dc.subjectDifferentiation Strategyen_US
dc.subjectFocus Strategyen_US
dc.subjectCompetitive Strategiesen_US
dc.subjectPerformance of Commercial Banksen_US
dc.subjectMombasa Countyen_US
dc.subjectKenyaen_US
dc.titleCompetitive Strategies and Performance of Commercial Banks in Mombasa County, Kenyaen_US
dc.typeArticleen_US
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