Effects of Expansion Strategies on Performance by Equity Bank Ltd

Abstract

Over numerous years, societies everywhere throughout the world have set up a nearer association between each other as an aftereffect of worldwide connections that are expanding wildly. Because of globalization, these days it turned out to be more normal for firms particularly those in developing nations to look for opportunities abroad expecting to improve their profitability, enhance the general client base, extend the brand attention to potential clients and present their item/services to new potential clients. This study looked to establish effect of expansion strategies on performance of Equity Bank in Kenya. This research was carried out through descriptive research design. The population of study comprised of 5 regional managers, 30 branch managers and 61 general manager of Equity Bank Kenya Ltd The study used primary data which was collected using questionnaires which were open-ended and close ended questionnaires. Data capturing was done using SPSS computer aided software. Data was presented using tables, graph and pie charts that facilitate in the description and explanation of the findings. Multiple regressions analysis was used to establish the relationship between dependent and independent variables. The study findings concluded that Market Entry Strategies influences on performance of Equity Bank Ltd to a very large extent. The study findings also concluded that foreign Entry Strategies influences on performance of Equity Bank Ltd to a very large extent. The study recommended that Performance of Equity Bank Ltd is highly influenced by Hierarchical Entry Modes, Intermediary entry modes, Foreign Market Entry Modes and Market Entry Strategies of Banks. Also the study recommended that expansion strategies are important on performance of Equity Bank Ltd and it should be adopted. The study recommended Further Research to be conducted on effect of expansion strategies on performance of other banks in Kenya. The study also recommended Further Research to be conducted on performance of Equity banks in Kenya using different variables other than expansion strategies.