An investigation into competitive intelligence practices and their effect on profitability of firms in the banking industry: A case of Equity Bank

Abstract

The process of collecting, storing and analyzing information about the competitive arena results in the actionable output of intelligence ascertained by the needs prescribed by an organization. The relevance of monitoring, understanding and responding to competitors has long been recognized as a significant aspect of marketing activity, yet analysis of the competitive environment seems often to be subordinated as greater emphasis is placed on understanding customers and consumers. This study sought to inves- tigate competitive intelligence practices of banks in Kenya with a specific focus on Equity bank. The study employed a case study design. The target population of this study was staff working at Equity Bank in Nairobi including top management, middle level management and low level management, of 60 was selected for the study. The stud used a questionnaire to collect primary data. The data was analyzed using both qualitative and quantitative techniques. The study found that for greater profitability of banks in Kenya, the competitive intelligence practices that should be applied are mainly product differentiation strategies, market intelligence, technology intelligence and strategic alliance. All these strategic intelligence practices lead to greater profitability and also reduction in costs for the bank, with technology intelligence being the highest contributor.