dc.description.abstract | The liberalization of the petroleum industry in Kenya in 1994 following deregulation enhanced
entry of independent petroleum product retailers of what was once an end line operation
preserve of the multinational oil companies. The new regulations scaled down barriers of entry
into the business. These included removal of price controls, shifting of the cost burden of "dead
stock" (unutilized stock in the pipe oil transportation system) to the major oil companies, and
allowing retailers to buy refined oil products rather than import crude oil and pay for the cost of
refinery. The deregulated petroleum sector has been preceded by proliferation of retail stations
that have been planted on major highways, urban feeder roads by both multinationals and the
independent entrepreneurs. More often than not there are common billboards reading "petrol
station under new management", "petrol station coming soon" for example. Initial visits to the
field by the researcher reveal nonetheless that some independent petroleum product dealers are doing well while some are not. These are the issues which raise the following research
questions: What are the critical success factors (the guidelines for being successful) in the
petroleum products retailing in airobi? 'And what are the factors that limit the petroleum
prod uct dealers' ability to implement the critical succes;tactors?
The findings show that location of station in respect to type of road, demographics and business
activity is the most critical success factor as indicated by 97.2% of the study respondents
followed by use of effective financial controls and assessments of periodical returns (confirmed
by 94.4% of the respondents). Competitive product pricing and monitoring was considered as a
('Sf's by 83.3% of the study respondents. Efficient and effective customer service, consistent product quality offering and maintenance of an efficient credit management policy were all
implicated as CSFs by 66.7% of the study respondents. Services diversification however was
considered a critical success factor in petroleum product retailing by half (50%) of the study
respondents .
Designing and implementation of petroleum product retailing business should be based on the
identification and prioritization of the eight main critical success factors, starting with location,
use of effective financial controls and assessments of periodical returns, competitive product
pricing and monitoring, efficient and effective customer service, consistent product quality
offering, maintenance of an efficient credit management policy and diversification of services in
that order. The different CSFs should be addressed at different times in different ways
depending on the availability of resources and situations in the operating environment. A
proactive entrepreneurial development program for the retailers requires long-term view of
current positioning in the market. Sustainable and long lasting solutions need to be the focus.
The researcher recommends that future entrepreneurs ~hing to venture into petroleum product
retailing consider investments where eight key critical success factors can be employed to
ensure acceptable returns. The idea of idea of the petroleum product retail station being
strategically located is critical to success. | en |