Internationalisation: Foreign Market Entry and Operation Strategy by Kenolkobillimited
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Date
2018Author
Muchiri, Juliet; W
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Organizations both in the developed and developing countries are constantly being
faced by threats and challenges that pose a threat to their sustainability. Though
internationalisation aims at improving the performance, the advantages and
challenges that may be experienced are not well defined by the available literature.
The study sought to determine the internationalisation process and entry mode
strategy used by KenolKobil in the international market. In conducting the study,
the study adopted a case study research design. Primary method was utilized in
obtaining information for the study. This was done using an interview guide. The
data was collected from the top management at KenolKobil who were directly
involved with the operations of the firm. Content analysis was used to analyse,
identify and categorize patterns that were found in the study data and presented in
narratives. The study ascertained the process of internationalisation strategy which
has been utilised by KenolKobil in entering the international market. The study
found that the main entry mode strategies used by the firm to be through
acquisitions, wholly owned subsidiaries and outsourcing. Other strategies were
also pointed out such as alliances, contracts, franchises, export and sequential
market entry. The study further found out that internationalisation of KenolKobil
had a significant positive effect on its performance. However, it was established
that KenolKobil Limited was faced by three main challenges namely; legal
challenges, political challenges, and existence of regional trading blocs during the
internationalisation process. The study thus concludes that the current high net
profit and shareholders’ value returns at KenolKobil Limited could be attributed
greatly to the company’s venture in the international market. The study therefore
recommends that for any company undertaking the internationalisation process, not
only KenolKobil Limited, to ensure that they have selected and implemented their
entry mode strategies carefully. The study further recommends that the government
and other regulatory bodies formulate conducive policies and frameworks
pertaining to the internationalisation process.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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