Analysis of the Competitiveness of the Cooperative Bank of Kenya Ltd

The rapid growth in the banking industry in Kenya supported by the ever-evolving government reform efforts have resulted into increased number of bank branches to over 1,000 country-wide, establishment of 2,205 automated teller machines (ATMs), increased use of agent banking services by licensing over 9,748 active-agents who transacted more than $506 million in 2011 together with improved access to mobile and internet banking services which have significantly increased competition in the banking sector and enhanced financial inclusion in the rural areas. The overarching goal of this research was to establish how Cooperative Bank of Kenya had successfully designed its strategic intent and actions while leveraging its competitive marketing strategies, technological-change, and internationalization of its leading financial brands to sustainably gain growth and profitability in the financial sector. Mixed research method was adopted in this research study in conjunction with the Convergent Parallel Mixed Method Design. In-depth interviews and survey questionnaires were used for data collection. A sample size of 86 participants out of 150 senior employees of the Cooperative Bank of Kenya Ltd were selected as research participants particularly senior bank managers and middle-level cross-functional managers. Research results indicated that the adoption of technological change by the bank had resulted into enhanced product differentiation and diversification, increased efficiency and operational effectiveness, improved brand recognition and brand positioning of its market offerings, and improved economies of scales by embodying integrated Supply Chain Management System and the Enterprise-Resource-Planning (ERP). Achieving a competitive advantage in the global markets requires that commercial banks to adopt internationalization of their market offerings to gain economies of scale through global dispersal of value chains and acquisition of small firms in foreign countries largely to give them strategic footprints in the global market. Future studies to investigate how the Cooperative Bank can leverage on its National Diamond Advantage to enhance its strategic positioning in the global markets. Future studies also to investigate the role of technological change in improving quality of service delivery at Cooperative Bank.