COMPASS MANAGEMENT AND COMPETITIVE POSITION IN NIGERIAN FINANCIAL INSTITUTIONS

This study investigates the relationship between compass management specifically strategic direction and competitive position, measured by brand strength, in Nigerian financial institutions, with a focus on Zenith Bank and Keystone Bank. Employing a descriptive survey research design, data were collected from 150 mid- and top-level management employees selected through stratified random sampling across five major banks. A structured Likert-scale questionnaire, validated by experts and demonstrating strong reliability (Cronbach’s alpha = 0.87), served as the primary data collection instrument. The study utilized regression analysis to test the hypothesis that strategic direction positively influences brand strength. Results from the regression model indicate a statistically significant positive relationship (p < 0.05) between strategic direction and brand strength, with an R² value of 0.61, suggesting that 61% of the variance in brand strength is explained by the clarity and consistency of strategic direction. The findings highlight the critical role of compass management in enhancing brand perception and competitive positioning within Nigeria’s banking sector. Zenith Bank, in particular, demonstrated stronger alignment between strategic direction and brand strength compared to Keystone Bank, emphasizing the importance of coherent leadership vision and communication in fostering customer trust and loyalty. This study contributes to the understanding of strategic leadership’s impact on brand equity and offers practical recommendations for financial institutions to reinforce their strategic vision through effective internal communication and alignment of marketing strategies with organizational goals. The study also suggests avenues for future research to explore additional compass management components that may further influence competitive advantage.