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Abstract:
The study sought to establish the effects of market expansion strategies on performance in Kenyan commercial banks, the study on these strategies was conducted. Objectively the study sought to establish the influence of market expansion strategies on performance of commercial banks considering three major strategies; Market challenger, market leader and market niche strategies. Market Expansion as a strategic growth option is particularly relevant in developing countries like Kenya because of very low product penetration and consumption levels. Respondents of the study were 3 senior managers in each commercial bank selected randomly. Descriptive research design was used and proportionate simple random sampling method was employed. Overall finding of the study revealed strong correlation coefficient between firm performance and the three market expansion strategies all with a significance of above 95%. Furthermore, the findings of this study substantiate the call for banking institutions to use market expansion strategies to enhance their performance. These strategies by commercial banks require firms to put necessary policies in place for the strategies to succeed. This will help in the formulation and implementation of such strategies. Staff and management commitment should be achieved so that full support of the strategy can lead to its success.
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