AN ANALYSIS OF COMPETITIVE STRATEGIES EMPLOYED IN MICROFINANCE INSTITUTIONS: A CASE OF KENYA WOMEN FINANCE TRUST
DOI:
https://doi.org/10.47941/jbsm.163Keywords:
competitive strategies, microfinance institutions, challenges, competitive edge, Kenya Women Finance TrustAbstract
Purpose: The study sought to examine competitive strategies employed in microfinance institutions using a case study of Kenya Women Finance Trust
Methodology: The study adopted descriptive case study design. The sample size was thirty respondents from a target population of one hundred and one respondents. The research used both stratified random sampling and purposive sampling methods. The research study used questionnaires and interview schedules to collect data. Data was analyzed using Statistical Package for the Social Sciences (SPSS) version 20 and Microsoft Excel 2007.
Results: The research findings indicated that KWFT used several competitive strategies so as to be at a competitive edge in the market, the majority being geographical expansion strategy, market and product development, improved marketing methods and differentiation strategy. The use of these competitive strategies in KWFT had several contributions such as the organization’s ability to be at competitive edge by being able to retain customers and also by achieving high profits for an organization. The various challenges that affected the use of competitive strategies included financial challenges and lack of skilled personnel to formulate and implement the competitive strategies.
Unique contribution to theory, practice and policy: It recommended that KWFT should use more of differentiation strategy as this was mentioned as being the least used strategy. This is important because products are differentiated in ways that will appeal on a variety of customers and thus creating customer loyalty which will eventually lead to competitive advantage for KWFT. It was also recommended that KWFT should be able to retain those employees that have been involved in crafting competitive strategies in the organization. KWFT should also employ high skilled personnel especially in the field of competitive strategy, reserve finances for competitive strategy formulation and train employees on competitive strategies so as to counter the challenges that were identified in the study.
Downloads
References
Alumila, G. M. (2004). Distribution strategies used by health maintenance organizations in Kenya (Unpublished MA project), University of Nairobi, Nairobi.
Alfine, S. (1997). Transformation research: An assessment of the impact of micro enterprises. New York: Sage Publishers.
Ansoff, I., & McDonnell, E. (1990). Implanting strategic management (2nded.). USA: McGraw Hill.
Anupan, B. (2004). Microfinance in Africa. New York: Sage Publishers.
Armendariz, B. (2007). The economics of microfinance. Massachusetts: Massachusetts Publishers.
Armstrong, M. (2000). Performance management: Key strategies and practical guidelines. (2nded.). Great Britain: Associates Publishing Company.
Baqui, K. (2004). Quantitative approach to impact analysis of microfinance programmes in Bangladesh. What have we learned? Journal of International Development, 16(3), 331-353.
Barnes, C. (2001). Impact of three microfinance programs in Uganda. USAID AIMS Paper.
Bless, C., & Ashraf, K. (2006). Fundamentals of social research methods: An African perspective (4thed.) South Africa: Juta & Co Ltd.
Browning, B. A. (2005). Development of microfinance institutions. New York: Browning and Associates Publishing Company.
Byars, L. (1991). Strategic management: Formulation and implementation, concepts and cases (3rded.). New York: Harper Collins Publishers Inc.
Chandler, A. (2006). Brand councils that care: Towards the convergence. Journal of Brand Management, 10, 327-34.
Delaney, J. (2004). Learning microfinance principles. New York.
Hari, S. (2010). Microfinance is not enough. Retrieved from http://www.gdrc.org/icm/not enough.html.
Hassan, S. (2004). The scaling up of microfinance in Bangladesh: Determinants, impacts and efforts. London: Oxford University Press.
Heather, M., & John, W. (2006). Modalities of microfinance delivery in Asia and Latin America: Lessons for China. New York.
Henderson, B. D. (1989). The origin of strategy. Harvard Business Review, November-December Issue.
Hill, L., & Jones, G. R. (2009). Strategic management theory: An integrated approach (9thed.). USA: South Western Engage Learning.
Ingrid, M. (2007). Microfinance investment funds. London: Springer Publishing Company.
Johnson, G., & Scholes, K. (2002). Exploring corporate strategy (6thed.). Prentice- Hall, New York.
Kenya Women Finance Trust. (2011). Kenya Women Finance Trust Bulletin.
Kiiru, J. (2010). Milestone of microfinance institutions: A case of Kenya Women Finance Trust. Kenya: MacMillan Publishing Company.
Kithinji, E. (2002). Development and the nature of microfinance in Kenya. Women and environment international magazine: issue 54/55.
Kumar, R. (2005). Research methodology (2nded.). London: Sage Publications.
Leedy, R. (1993). Practical research: Planning and design (5thed.). New York: Macmillan.
Malin, J., & Carola N. (2007). Microfinance and poverty alleviation. New York: Macmillan.
Hudon, M. (2009). Management of microfinance institutions: Do subsidies matter? London: Sage Publications Ltd.
Mintzberg, H. (1990). Strategy formation: Schools of thought. London: Sage Publications Ltd.
Paladino, B. (2007). Five key principles of corporate performance management. New Jersey: John Wiley & sons Inc.
Panneerselvam, R. (2005). Research methodology: New Delhi: Prentice Hall India.
Pathak. R., P. (2008). Methodology of educational research. New Delhi: Atlantic Publishers and Distributors.
Pearce, J., & Robinson, R. (2005). Strategic management: Formulation, implementation and control (10thed.). USA: McGraw- Hill. Pennsylvanian State University: Mc GraHill Publishing Company.
Pearce, J. A., & Robinson, R. B. (1994). Formulation, implementation and control of competitive strategy (5thed.). Boston: Richard Irwin Inc.
Porter, M. E. (1980). Competitive advantage: Creating and sustaining superior performance. New York: Free Press
Porter, M. E. (1998). Competitive strategy: Technique for analyzing industries and competitors. New York: Free Press.
Sidney, L. B. (2010). Strategic management simplified. New York.
Thompson, A. A., & Strickland, A. J. (2003). Strategic management: Concepts and cases (13thed.). USA: McGraw Hill.
Yunis, M., & Jolis, A. (1998). Banker to the poor: The autobiography of Muhammed Yunis, Founder of the Grameen Bank. London: Aurum Press
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
