Growth Strategies Adopted by Cooperative Bank as an Operational Orientation

Abstract

Modern businesses operate in a turbulent environment faced with a variety of new challenges brought about by globalization and trade liberalization. Its impact typically remains hidden within the normal fluctuations in performance. Businesses therefore engage in growth and expansion strategies that will enable them to respond to the environmental challenges in order to gain competitive advantage over their competitors, increase market share and indeed for continued survival in the market. Firms adopt various strategies based on the goals and objectives. The different strategies have different costs and related benefits that influence adoption. This study adopted a descriptive design with main focus on qualitative and quantitative data. The study population focused on senior employees of Cooperative Bank (Coop Bank) that are involved in strategy formulation. The study utilized both primary and secondary data. The researcher used face to face interviews to collect information. Qualitative data was analyzed using content analysis. The study found that Coop Bank uses both local market and international market strategies as a growth and operational orientation. Coop Bank‟s local markets strategies include Branch Banking, Agent Banking and M- banking among others while the international strategies include the Diaspora account, Money transfer services and foreign investment. However, the local market forms the major share of the bank‟s income. The study recommends that the bank comes up with product differentiation strategies by segmenting the customers based on their needs, size and type of business and designing products. The study further recommends that agency banking be marketed more as it‟s an area with great growth potential as it uses the already established private enterprises and saves the bank huge capital outlays of opening a branch.