| dc.description.abstract | Internationalization through export is one of the strategic responses to rising domestic
competition, saturated market, low capacity utilization and search for growth. Kenya has
experienced mixed fortunes in the vehicle export market. The growth in new vehicle export as w
ell as the ratio of export to total sales has been very low. On the other hand, the three motor local
motor vehicle assembly plants have remained highly underutilized. Although General Motors
East Africa (GMEA), the leading vehicle exporter in Kenya, has allocated substantial resources
over the years in the export business, little incremental value has been realized (Kenya vehicle
Manufacturers Association Report, 2006).
A case study of GMEA was conducted with the objective of identifying factors influencing
vehicle export and evaluating effectiveness of the internationalization strategies employed.
Primary and secondary data was used. Primary data was collected by use of questionnaires
targeting 11 respondents drawn from GMEA senior staff and dealers. The research was
conducted between November and December 2007 and 10 responses out of 11 received.
Descriptive statistics (Mean, frequency and standard deviation) was used to analyze the data.
The key success factors in vehicle export were identified as product quality, warranty,
distribution, pricing, technical support, financing, parts support, delivery, brand name and
promotion. The main challenges encountered are financial support in export markets,
competition from cheap entrants, tariff, availability of market information and foreign exchange
fluctuations.
To address strategy gaps and improve export business, GMEA will have to strengthen or develop
and implement strategies in the areas of pricing, promotion, product offering, distribution and
financing. Great opportunity lies with regional integration and vehicle export remains viable.
Key Words- Quality, warranty, distribution, pricing, technical support, financing, parts
support, delivery, brand name , promotion, small and medium sized enterprises (SMEs), trade
liberalization and Key success factors | en |
