COMPETITIVE STRATEGIES AND PERFORMANCE OF SELECTED DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN EMBU COUNTY KENYA
Abstract
The purpose of this study was to determine the influence of competitive strategies on the performance of deposit taking savings and credit cooperative societies in Embu county Kenya. The research design adopted was descriptive research design; the population was drawn from the deposit taking cooperative societies in Embu County. This study adopted a census owing to the few numbers of respondents. Closed and open ended questionnaires were used to collect primary data. Validity and reliability of the data collection instrument was tested. The study used quantitative and qualitative data. To analyse qualitative and quantitative data, descriptive and inferential statistics were used. The Statistical Package for Social Sciences was used to code and analyze the data. Tables were used to display the outcomes. The qualitative data provided in open-ended questions were analyzed using content analysis. The study established that there was a positive and significant influence between cost leadership strategy, differentiation strategy, focus cost strategy and focus differentiation strategy and the performance of the selected deposit Taking Savings and Credit Cooperative Societies in Embu County Kenya. The study concluded that the cost leadership strategy enables the Deposit Taking Savings and Credit Cooperative Societies to gain a competitive edge by charging a reasonable price for their products, eventually achieving sustainability thanks to more customers. The instistitutions focuses on providing a unique experience for customers, usually by offering a premium good or service. The instistitutions on their focus cost strategy charges low prices relative to other financial institutions that compete within the target market. The instistitutions through focus differentiation strategy offers unique features that fulfill the demands of a narrow market. The study recommended that the institutions should manage their cost leadership strategy in an effective way that can bring in profits and also brand recognition in the market that will help in the long run of the institution. For the instistitutions to achieve long-term competitive advantage, the product differentiation through credit cards should be improved. The instistitutions should carry out their focus cost strategy based on price to target a narrow market. The instistitutions should aim at targeting a small group of customers with differentiated products and focus on narrow market coverage, seeking only to attract a small, specialized segment.
Key Words: Cost Leadership Strategy, Differentiation, Focus Cost Strategy, Focus Differentiation Strategy
CITATION: Mwaniki, P. I., & Kiiru, D. (2022). Competitive strategies and performance of selected deposit taking savings and credit cooperative societies in Embu County Kenya. The Strategic Journal of Business & Change Management, 9 (4), 1583 – 1599.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2512
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