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Author
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Masvoswa, Hazel.
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Title
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Competitive strategies and their influence on the changing Zimbabwean banking industry using a case study of CBZ
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Abstract
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This study's goal was to identify the competitive tactics used in Zimbabwe's banking sector by using The Commercial Bank of Zimbabwe as a case study. The Competitive Strategies Employed by The Commercial Bank of Zimbabwe and Effectiveness of the Competitive Strategies Adopted by The Commercial Bank of Zimbabwe served as the study's guiding principles in achieving its objectives. As of January 2022, the study's target population includes 1645 workers of The Commercial Bank of Zimbabwe. The Commercial Bank of Zimbabwe's many personnel cadres make up the sampling frame. The cadres were used to make sure that the sample frame was up to date, comprehensive, and appropriate for achieving the goal of the study. When choosing the right sample for the investigation, stratified sampling was used. 142 workers were chosen as a representative sample size for the study. Data for the study were gathered using a semi-structured questionnaire. For closed-ended questions, a five point Likert scale was used. To determine the questionnaire's reliability and content validity, the study conducted a pilot study. Data were examined. The Statistical Package for Social Sciences (SPSS) Version 22.0 was used to analyze the data. Mean and standard deviation were employed as measures of central dispersion. The data were presented using tables and graphics. The study discovered that The Commercial Bank of Zimbabwe had adopted cost leadership strategy, by providing low cost prices for their goods and services, differentiation strategy, and concentrating on a particular type of market niche. These strategies were found to have given CBZ a competitive advantage. The bank heavily utilized and placed emphasis on the application of the cost leadership strategy. Additionally, the bank employs differentiation, aiming to be distinctive in the items it offers and market penetration techniques. For CBZ to establish a competitive edge over its rivals, it must either provide customers with equivalent value, execute tasks cheaper than its rivals can (lower cost), or conduct tasks in a special way that increases consumer value and requires a higher price (differentiation). In terms of how well the Commercial Bank of Zimbabwe's implemented competitive strategies worked, CBZ's competitive tactics were quite successful. The study also came to the conclusion that CBZ had developed a competitive advantage through the use of strategies like differentiation, cost leadership, and focusing on a particular market niche. These strategies are crucial for the efficient operation of any organization. The study suggests that CBZ operate in a highly competitive environment, thus it must be able to draw in and keep its target market and clients. Cost leadership, differentiation, and diversification are some of the competitive strategies that CBZ might use to provide superior value. Additionally, the report advises commercial banks to concentrate on creating and putting into practice effective strategies that would help them to thrive in the cutthroat environment in which they operate. The banking industry is currently facing numerous obstacles, and new products like Mukuru, Innbucks, and access FX appear to be posing a threat to the sector. However, if appropriate strategies are put in place, commercial banks will continue to operate in the challenging business environment.
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Date
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June 2022
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Publisher
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BUSE
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Keywords
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Competitive Strategies,
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Banking Industry,
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Cost leadership,
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Supervisor
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Mr. Chaparadza,
Hazel Masvoswa.pdf