Distribution Strategies and Competitive Advantage in Kenya Commercial Bank Limited

Abstract

The achievement of a competitive advantage is a major pre-occupation of managers in the present day business environment which is characterized by intense competition. One of the sources of competitive advantage to an organization is the distribution strategies it adopts to sell its products. Successful distribution channel strategy selection, implementation, and management cannot only help to meet the shopping needs and habits of the target customers efficiently under the cost constraints of the seller; they must also mitigate the disadvantages caused by distribution channel conflicts such as double marginalization. The purpose of the study was to determine the role of distribution strategies as a source of competitive advantage at Kenya Commercial bank. The study adopted a case study research design in which an interview guide was used to collect data and content analysis was used in analyzing the data. The research found out that some of the distribution strategies employed includes warehousing, direct distribution, intense distribution as well as indirect distribution using middlemen. Through speed of offering the service, the added value, unique resources, superior quality of services, the banks’ product and service diversity, service flexibility, differentiation strategy, cost leadership strategy and unique corporate culture were adopted. The distribution strategies adopted in the organization has led to a number of competitive advantage which includes the increase in area of coverage especially in the international market, edge competitors in making the products available to customers, increase in customer satisfaction through making the products available as well as addressing their concerns more promptly.