Strategic Positioning and Competitive Advantage in Banking Industry in Kenya: A Descriptive Statistics of Private Sector Banks

Abstract

This research paper focused on the strategic positioning and competitiveness of Kenyan banking industry with greater focus being pegged on private sector banks. This research forms a framework for understanding both the policy and individual decisions that bank executive managers have to consider when making strategic management decisions. These have been based on the identification of concrete financial and economic issues from the results of comprehensive and in depth research carried out through primary research, and also study of related banking journals. Purpose: The core purpose of this research was to find out the strategies employed by private sector banks in Kenya to attain strategic positioning and competitive advantage through technology, innovation, cost reduction and nature of products offered. Methodology: The paper employed a survey research design. The sample size of this research was estimated at 250 executive bank managers. The data was analyzed using standard software. The variables were measured using correlation analysis.Findings: The most significant finding in this research is that strategic positioning and competitiveness of banking industry is affected by its ability to innovate and embrace technology so as to yield high results. Though it is a generic finding, the implications of the results regarding both research and practice are really prominent.Contribution: The research holds great value to firms based not only in Kenya, but also in the whole world. This is highly aggravated by the fact that most banks are seeking to achieve sustained competitiveness but cannot securely be placed unless they work on their preferences as well as their ability to innovate and develop key Technologies