Influence of Competitive Strategies on Innovation Among Commercial Banks in Kenya

Abstract

In 21st century businesses have recognized that engaging in strategic thinking is essential to the accomplishment of their business objectives. Most companies are faced with the challenge of implementation of competitive strategies. In order for businesses to maintain their competitiveness and remain relevant to the most current changes in the market, it is thus vital for them to put their plans into action. To identify the extent to which competitive tactics have an impact on innovation among commercial banks in Kenya, the purpose of this research was to investigate them. and Rogers' idea of the diffusion of innovation served as the theoretical foundations for this research project. Cross-sectional descriptive research was the method that was used for this investigation. During the course of this research, the population consisted of all 42 commercial banks in Kenya that are presently functioning. It was determined that commercial banks in Kenya accepted distinctiveness and focus, while also adopting cost leadership and positioning to a significant degree. This was the situation observed during the analyzed time frame. and competitive strategies. The study results indicate that commercial banks use cost leadership methods to both recruit and retain customers. These strategies include providing low-cost products of good quality, such as savings accounts, and also using a system that guarantees the bank's operating efficiency at all times. The study's authors concluded that commercial banks also apply the differentiation technique by offering customers unique products and services. Based on the study results, commercial banks that prioritize customer service to their core clients place a high value on giving customized attention. Further, the study concluded that commercial banks determine how it will communicate its positioning to its target market through various channels such as advertising, marketing campaigns, social media, and public relations. Research shows that commercial banks in Kenya might significantly reduce their overall costs by instituting systems and processes that reduce overhead costs. By doing so, commercial banks in Kenya will be able to get a cost edge over their fellow competitors. Commercial banks in Kenya are required to provide information on the goods and services that they provide to their customers. For the purpose of educating the general public about their fundamental principles, commercial banks in Kenya need to organize educational conferences and seminars.