The main aim of any modern business is to develop a competitive edge over its competitors. This is done with the intention that such an edge would enable it not only to outperform its competitors but as well sustain its profit making ability. Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors (Kay, 1994). Banking industry is one of the forms of business enterprises in which cut throat competition thrives (Kinusi, 2010). Competition in the Kenyan banking industry has risen to the point where even international banks like Barclays among others have been forced to change their strategies in order to maintain and enlarge their market shares (Abishuan, 2010). Barclays in the recent past has always made the highest profits. This however is slowly being overtaken by banks such as Kenya Commercial Bank. Other, like Equity, though very late entrants in the banking industry are now among the ones with the highest number of customers (CBK, 2012). This means that it has to come up with strategies to ensure it stays on top of the rest in the Kenyan banking and financial industry. Due to a persistent research gap of an empirical study on effects of competitive strategy on the performance of Barclays Bank of Kenya with specific focus on its Mombasa and Nairobi County branches, this research intended to make its contribution by taking a look at the extent to which Barclays Bank of Kenya’s performance is a measure of its competitive. Data obtained from a sample of 38 Barclays bank of Kenya staff in various senior management positions both in its Mombasa branches and the head office in Nairobi was analyzed using descriptive statistics. It showed that the banks mission and strategic plan as implemented in the bank’s performance as a competitive strategy was the most effective strategy employed by the bank. On the other hand, the bank’s management activities in reaching to all types of customers in all income groups as a strategy had the least effect on the bank’s performance as a competitive strategy. Further, it was noted that a majority of the respondents consider the strategies as having a positive impact on its performance

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