The Application of Internet Within the Context of the Five Forces Model in Determining the Nature of Competition in the Commercial Banks in Kenya

Abstract

The banking industry has been at the forefront of change fuelled by technology. Certainly many banking customers have enjoyed the convenience of supermarket banking and home banking. Unlike the mainframe environment that was much closed environment, the internet is designed to be open and approachable, with control and trust resting with the users. With digital nature of the internet, there is no a physical or geographical location or boundaries. This means that traditional or time-honored physical security is no longer much relevant in an environment with no boundaries. This study therefore sought to establish how internet is affecting the five forces model in the commercial banks in Kenya The study was conducted using census survey. The population of interest for this study comprised all 45 commercial banks Kenya. Primary data was collected using questionnaires. The questionnaires were administered through “drop and pick” method and respondents targeted are corporate strategy managers or marketing managers of the Banks. Data analysis was analyzed using descriptive statistics tools of analysis, such as mean scores, percentages, and frequencies. Data was then presented using tables and figures