Strategies that Deposit Taking Microfinance Institutions Use to Gain Sustainable Competitive Advantage in Kenya

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dc.contributor.author Kaiganaine, Mbuiyu
dc.date.accessioned 2015-07-28T10:45:37Z
dc.date.available 2015-07-28T10:45:37Z
dc.date.issued 2015
dc.identifier.uri http://erepo.usiu.ac.ke/11732/575
dc.description A Project Report by Mbuiyu Kaiganaine, submitted to the Chandaria School of Business in partial fulfillment of the requirement for the Degree of Master of Business Administration (MBA). en_US
dc.description.abstract The study sought to explore the strategies that deposit taking microfinance institutions use to gain sustainable competitive advantage in Kenya. The study was guided by three research questions. Chapter one introduced the background, problem statement, research questions, significance, scope of the study and definitions of significant terms used in the study. Chapter of the study presented the reviewed literature which was guided and presented according to the research questions which the study aimed to answer. Chapter three presented the research methodology. The researcher adopted the descriptive research design, the study adopted the stratified random sampling procedures which was used to identity 45 respondents as the sample size from a target population of 90 respondents. The major results result show that differentiation strategies had the highest correlation (r = 0.183), followed by focus strategies (r = 0.177) and the least correlation was observed between cost leadership strategies (r = -0.070). In our regression model, the significance level is 0.36 which is greater than 0.05 which suggest that the model is not statistically significant to explain the influence of generic strategies on sustainable competitive advantages of deposit taking microfinance institutions. The study concludes that DTMs are hesitant to adopt cost leadership strategies as they are more appropriate for firms that have a vast experience of the market. The majority of DTMs in Kenya have very little experience with the market as most are registered after 2006 following the amendment of the Microfinance Act. The study concludes that DTMs have offered quality service, unique products and services for which customers are willing to pay more. The study concludes that the differentiation strategy is more appropriate for the DTMS as they seek to serve a market that has been ignored by the mainstream financial institutions. Therefore differentiation strategy can help a DTM to realize the most statistically significant sustainable competitive advantage when compared to DTMs pursuing cost leadership or focus strategies. The study concludes that DTMs to a great extent have focused on unique areas of business. They have also focused to a great extent on products or services distinctly different from those of competitors as well as products or services that target niche market or narrow customer segment. The study recommends for further study on the effect of differentiation strategies on sustainable competitive advantage of DTMs. The study should focus on the product, market, personnel and service differentiation. The study recommends for further study on the impact of focus strategies on the sustainable competitive advantage of DTMs. This study should focus on the impact on specific variables of sustainable competitive advantage. The study recommends for further study on constraints and challenges of adopting cost leadership strategies in DTMs. This study should also focus on the intended objective of adopting a particular cost leadership strategy for the organization. The study should include DTMs in other regions of the country. en_US
dc.publisher United States International University Africa en_US
dc.subject Deposit Taking Microfinance Institutions en_US
dc.subject Competitive Advantage en_US
dc.subject Kenya en_US
dc.title Strategies that Deposit Taking Microfinance Institutions Use to Gain Sustainable Competitive Advantage in Kenya en_US
dc.type Thesis en_US

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