An assessment of the perceived attractiveness of the Kenyan market to international airlines
Abstract
The primary objective of the study was to assess the perceived level of attractiveness of
the Kenyan market to International airlines. The research sought to know from the
airlines with current operations in and out of Kenya what they thought the level of
attractiveness of the Kenyan market was to them. The study was motivated by the fact
that the airline industry in Kenya has generated a lot of business interest lately due to the
continued exit as well as entry of international airlines into the Kenyan market. The
researcher therefore sought to find out the real reason behind this perplexing situation.
Questionnaires were administered to senior managers/general managers of the airlines.
Out of a total of 41 airlines that composed the total population, 29 responded,
representing a response rate of 71%. Questions on the airline characteristics and profile
such as their origin, the number and type of equipment operated, annual turnover,
frequencies of operation per week were asked and the responses thereto formed the
background information of the population.
Data analysis on the six factors studied employed the use of statistical tools mainly the
mean and the mode, factor analysis as well as the Chi square test of independence.
The principal research finding was that the Jevel of attractiveness of the Kenyan market
to international airlines is moderate. This is because three of the six factors (Barriers to entry, Rivalry among firms and government influence) were rated as strong, making the
market unattractive. The other three factors (Bargaining power of buyers, Bargaining
power of suppliers and the threat of substitutes) were found to be weak thus making the
Kenyan market attractive to international airlines.
Citation
A Management Research Project Report Submitted in Partial Fulfillment for the Requirements of the Degree of Masters of Business Administration (MBA), School Of Business, University Of NairobiPublisher
Business Administration