| dc.description.abstract | The commercial banks in Kenya are currently operating in a more dynamic business environment
than before, since the market has been liberalized. Due to the liberalized economy, there has been
intense competition in the banking industry and this has led to the banks responding to the
competitive environment, otherwise they become irrelevant. The importance of strategic
management cannot be ignored, because it determines how organizations respond strategically to
competition and other business environmental challenges. This study sought to identify the
challenges the commercial banks in Kenya are facing due to the intense competition. It also
documented the strategic responses adopted by the commercial banks, and the intensity of the
competitive forces to the banks operation. The study was conducted in Nakuru town where there are
24, commercial banks in the town.
Random sampling was used in the study and the researcher distributed questionnaires to any five
management staff from each bank and this gave a sample of 120 respondents; the data for this study
was collected by means of questionnaires. The data was then analyzed using descriptive statistics
like the measures of central tendencies, frequencies and tables with the help of statistical Package of
Social Sciences, and thereafter a correlation analysis was done to determine the relationship
between the independent variable in the study the competitive environment and the dependent
variable in this study the strategies adopted. The analyzed data was presented in charts, graphs and
cross tabulation. The study showed that there is a positive relationship between the competitive
environment determined by the Porters five force and the strategies the commercial banks adopted
to respond to the competitive environment. The study concluded that the Strategies adopted by
commercial banks have a direct effect on their operation since the strategies respond to the
competitive environment. Competitive strategies play a vital role in enabling banks adopt to the
competitive environment under which they operate and have competitive advantage over other
financial service providers.The findings revealed the challenges facing the commercial banks in
Kenya as a result of intense competition. The study also indicated how these commercial banks
responded strategically to the competitive challenging environment. | en_US |
