EFFECT OF STRATEGIC POSITIONING ON ORGANIZATIONAL PERFORMANCE OF COMMERCIAL BANKS IN MOMBASA COUNTY
Abstract
Strategic positioning is vital for organizations to sustainably survive in a highly dynamic working environment. Strategies are key focus for profitability in any organization as they enhance their performance and competitive advantage over their main rivals. This study sought to determine the effect of strategic positioning on organizational performance of commercial banks in Mombasa County. The specific objectives included determining the effect of market positioning strategy and product positioning strategy on the organizational performance of commercial banks in Mombasa County. The study was anchored on Market positioning theory, the Delta Model theory and Performance theory. The study used survey method. The target population of this study consisted of 150 managers in the 25 commercial banks in Mombasa that included operations managers, finance managers, information technology managers, marketing and sales managers, product development managers and corporate managers. The researcher used these respondents to draw the sample size. The study adopted primary and secondary methods of data collection. Descriptive analysis was done in terms of standard deviation and means. In this study, data presentation was done by use of frequencies and percentages. The relationship between the variables was determined by use of multiple regression analysis method. The study established that commercial banks operating in Mombasa used various product positioning strategies to identify themselves uniquely in the market. In order to stay competitive, banks must come up with strong marketing strategies that ensure customers only keep the image of their products; however, these measures must portray best of the product being advertised. Product positioning is paramount in fostering competitive advantage.
Key Words; Market Positioning Strategy, Product Positioning Strategy, Organizational Performance
CITATION: Okeyo, V. O., & Lewa, E. (2020). Effect of strategic positioning on organizational performance of Commercial Banks in Mombasa County. The Strategic Journal of Business & Change Management, 7(3), 1428 – 1443.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i3.1751
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