Total quality man Agement and competitive Advanta Ge of commercial banks in kenya

Abstract

This project examines the relationship between total quality management usage has on competitive advantage in the banking industry in Kenya. The new electronic age has transformed the marketing of banking services. The modern customer demands new and differentiated financial products and services. This way, banks must continuously search for new strategies to develop and market their pr oducts and services. The banking industry has gone through many changes as a result of the introduction of TQM. The aim of this project is to evaluate the various factors that TQM has brought in place to meet productivity, customer satisfaction and service delivery in the banking industry. This include the effects of service delivery on the usage of TQM, the effect of products and services differentiation on TQM, the effect of customer needs a nd wants on TQM, the effects of costs on usage of TQM, the effect s of competition on usage of TQM. The focus of the report has mainly been in the Licensed Commercial banks in Kenya and d ata was obtained from both the operations managers at the banks. The data was analyzed using simple descriptive research methodology wi th the help of illustrations through table of figures to objectively determine the r elationship between Information Communication Technology usage on Efficiency in banking industry in Kenya. The study focused on licensed commercial banks in Kenya. The case study research design was adopted for this research work; to study 43 licensed commercial banks according to the Central bank of Kenya (2012). The questionnaire was used as instrument to collect data for the study. The questionnaire was administered on th e sampled population, which were dully completed and returned to the res earcher. The data collected was analyzed and interpreted. Relevant findings were made from the study on the efficiency and application of TQM in banking sector. The finding shows that TQM adoption in banks has led to competitive advantage and improvement of operational efficiency and reduced information costs