Influence Market Entry Strategies on Performance of Foreign Fast Food Firms in Nairobi County Kenya

Abstract

Today’s business environment is dynamic, complex and continually changing hence whichever market entry strategies global companies setting up in a country decide to use must be the most effective and efficient strategy. Fast food business is booming in Kenya attracting both international and local brands making Kenyan consumers to be more and more international. The middle class group in Kenya is growing and as result it attracts international investors to invest in fast food restaurants within the country. The objective of the study was to examine the influence of market entry strategy on performance of foreign fast food firms in Nairobi County Kenya. The study used descriptive cross-sectional survey. The population for this study was 15 foreign fast food firms in Nairobi Kenya. Primary data was used in which questionnaire was adopted. This study was based on primary data that was collected through the questionnaire method. The results revealed that strategic alliance, foreign direct investment and joint venture and franchising influence firm performance at moderate extent while licensing influence firm performance at great extent. The study concludes further that strategic alliance, foreign direct investment and joint venture and franchising influence firm performance at moderate extent. The study recommends that government should come up with laws and policies to ensure proper regulation and governance of the fast food industry in Kenya. This will lay down the guidelines to be followed by the players in the industry to create fair competition practices. The study suggested that other research studies should be done on other multinational companies that adopted market entry strategies and firm performance such as those in the FMCG and in oil sector.