Industry Strategies Adopted By National Bank of Kenya in the Turbulent Banking Industry and their Effect on Organizational Performance

Kagendo, Atoiti Faith (2015) Industry Strategies Adopted By National Bank of Kenya in the Turbulent Banking Industry and their Effect on Organizational Performance. Masters thesis, University of Nairobi.

PDF (Industry Strategies Adopted By National Bank of Kenya in the Turbulent Banking Industry and Their Effect on Organizational Performance) Atoiti, Faith K_Industry strategies adopted by national bank of Kenya in the turbulent banking industry and their effect on organizational performance.pdf - Accepted Version Restricted to Repository staff only Download (232kB) | Request a copy

Abstract

The banking industry has witnessed intense competition and turbulence the world over and the Kenyan banking industry is not an exception. To survive in this market, commercial banks have adopted different industry strategies to gain and sustain competitive advantage derived from their capabilities and thus influence its organizational performance. In a turbulent banking industry like the Kenyan situation, absence of well-defined industries strategies can lead to weak positions and result in performances that are below the industry average. The purpose of this study was to examine the industry strategies adopted by the National Bank of Kenya and their effect on the organizational performance. The study adopted case study design to carry out this research where an interview guide targeting 8 senior officers of the bank was employed to collect data. Both primary and secondary data were sourced and used for analysis through Content Analysis method. The study revealed that NBK has recently applied various strategies to capture the market share and sustain competition. It also came to the fore that the bank recently underwent a restructuring process and thus has been embracing cost efficiency strategy to spur growth and gain competitive edge in the competitive banking industry. Technology adoption relate to payment services and how customers conduct banking business through for instance debit cards ,smart cards, mobile banking among others. An advance in technology has reduced the need for an intermediary by providing easy access to information. Through adoption of various technology advances, communication has also been enhanced between both the internal and external customers. This has led to creating good customer relationship. The bank is also boasting of enhanced brand equity through adoption of differentiation strategies that has enabled its products and services to stand out from its competitors. The bank is also able to develop and analyze new markets and therefore able to venture into new markets. The study recommended that the bank should focus on improving its IT infrastructure, expand the branch network and train staff to be more customer-friendly to exceed customer expectations to gain and sustain competitive advantage over its competitors also that commercial banks should be able to come up with strategies that will ensure that they adapt to the changes and the intense competition that are taking place in the industry and be relevant to the challenging environment that they are operating in.

Item Type:	Thesis (Masters)
Subjects:	H Social Sciences > HG Finance
Divisions:	Africana
Depositing User:	Mr Nahum Osman
Date Deposited:	21 Jun 2016 07:58
Last Modified:	21 Jun 2016 07:58
URI:	http://thesisbank.jhia.ac.ke/id/eprint/517

Actions (login required)

View Item