Competitive Priority Choices and Operations Strategies Adopted by Commercial Banks in Kenya

Abstract

The business environment has today become very competitive and there is greater realisation of the importance of having the customer’s voice in the decision making process. In essence competitive priorities indicate the areas that process performance managers must emphasise to obtain desired competitive performance. Operations strategy is the effective utilization of production capabilities to achieve business and corporate goals. This study sought to answer the research questions: Which competitive priorities and operations strategies have been adopted by the commercial banks? Which factors affect choice of competitive priorities and operations strategies adopted by the commercial banks? What relationship exists between competitive priorities choice and operations strategies adopted by commercial banks in Kenya. The research adopted a descriptive research design with the target population being the 43 commercial banks in Kenya, thus a census survey. Both primary and secondary data was collected to enable the researcher address the objectives of this study. Data analysis included both qualitative and quantitative techniques using descriptive statistics. From the study undertaken, the researcher established that the main competitive priority considered by commercial banks in Kenya is quality and cost or price. The study also established that new product/service development strategy and technology strategy were the main operations strategies adopted by the banks. It was also established that competitor actions and customer needs were the main factors that affected choice of competitive priorities and operations strategies adopted by the commercial banks. Results of the study indicate there indeed exists a relationship between competitive priorities choice and operations strategies adopted by commercial banks in Kenya. It was also established that it’s a positive symbiotic relationship competitive priorities and operations strategies adopted by commercial banks in Kenya. The study recommends that organizations need to pay close attention to customer needs and competitor actions as they apply new product/service development strategies and technology strategies and other operations strategies in order to get ahead in the current competitive environment.