Internationalisation: Foreign Market Entry and Operation Strategy by Kenolkobillimited

Abstract

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.