ANALYSIS OF FACTORS INFLUENCING COMPETITIVE ADVANTAGE IN SELECTED SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN NAIROBI NORTH DISTRICT
Abstract
With the intense Competition within the financial industry, there was need to research on Saccos in order to establish their competitive advantage and how they could remain relevant in the market. The objectives of the study were; to assess the effect of capitalization on the competitive advantage of Saccos in Nairobi North District, to assess the levels of information technology utilization by Nairobi North District Saccos and to assess the marketing levels of Nairobi North District Saccos. The research design used was descriptive research design. Data was obtained through the use of self-administered questionnaires. Questionnaires included both open and close ended questions. The data was analyzed using quantitative research techniques and was presented in form of regression analysis, pie charts, tables and graphs. The statistical tools which included statistical package for Social Sciences Software (SPSS) and Microsoft excel were used. A sample of eight SACCOs was taken from a population of two hundred and forty SACCOs in Nairobi North District using purposive sampling. The target respondents were the top and middle management staff of the selected Saccos. Six questionnaires were distributed to each SACCO to be completed by two top level management staff and four middle level management staff. The study established that SACCOs faced tough competition; they were undercapitalized making them not able to give proper service to their members. SACCOs’ had inadequate information systems. Some of the selected SACCOs indicated a good attempt towards marketing whereas some did not take marketing seriously. The researcher recommended that SACCOs consider acquiring robust and complete information systems, to open up the common bond to enable them gain more customers to create funds for loaning, to use marketing tool and to retain more profits in an effort to improve on their capital. The researcher also recommended that Saccos create alliances to work with, to create a team of experts to guide on a robust information system that will benefit big and small Saccos. It was also recommended that Saccos retain earnings to help create capital. On marketing, every organization that is in business must market its products and so for Saccos.
Key Words: Capitalization, competitive Advantage, Information Technology, Marketing Levels
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DOI: http://dx.doi.org/10.61426/sjbcm.v4i1.410
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