The Role of Strategy in a Competitive Business Environment: A Case Study of Ecobank Ghana Limited

Abstract

The financial systems in Ghana tend to evolve around the banking system. The banking sector is experiencing increased competitions in the new deregulated market. Competition in the banking sector matters for a number of reasons. Operating in the competitive banking environment is very challenging. Formulating a consistent strategy is an intricacy for many management teams, making that strategy work is even more complex. The aim of this study is to examine the role of strategy in competitive business environment. A case study research design was adopted for easy assessment of the role of strategy in a competitive environment. Ecobank Ghana Limited, the Pan African bank was adopted for the case study area. Both primary and secondary source data was used with a sample size of 320 respondents. Convenient sampling technique was used to collect data from Management of Ecobank. The study therefore found that the competitive strategies of Ecobank Ghana are effective and that the strategies have contributed to high financial performance of the bank. The impact of competitive strategies on the performance of the bank are increasing sales volume; profit efficiency, increase productivity, increase in ROE, businesses and sustainable growth increased market share, enhanced customer service and increased of customer waiver of charges. The study recommends that the bank should work hard to build and sustain its competitive advantage and be prepared for the next wave of market reforms and restructuring by applying new methods of information technology and upgrading the skills of staff and management.