Entry Strategies Adopted by Kenyan Insurance Companies in Expanding to Comesa Region
Abstract
International expansion strategy is becoming the norm in many firms' corporate strategy
due to globalization pressures and increased regional integration among emerging regional
blocs in the Africa continent. Increase of business opportunities among regional member
states due to relaxation of trade barriers and more investments especially in the mining,
agricultural and industrial sectors have increased investing firms' risk profile that need to
be insured. The purpose of this study was to identify entry strategies adopted by Kenyan
insurance firms in the expansion process within COMESA region, the influence behind
choice of strategy and challenges experienced in their internationalization process. The
researcher undertook a study of 11 insurance firms using a census survey method. Data
was collected with the aid of a questionnaire to respondents, analyzed using descriptive
statistics and presented using tables. The study findings reveal that many Kenyan Insurance
firms prefer entry strategies that enable them retain ownership and control of the expansion
process of which the predominantly used Greenfield strategy favors. The study findings
also reveal more than one entry strategy can be used by a firm depending on firm specific
competencies and new unpredictable opportunities encountered during internationalization
process. The most challenging factors in their expansion process were the political
environment and country regulations firms encounter across the region. Insurance firm
associations, government agencies and other policy makers need to formulate favorable
policies and oversight regulations to the insurance sector. Kenyan insurance firms should
be prepared to adopt innovative entry strategies to keep up with ever changing external
environment dynamics, conduct continuous market research to create products that fit
varied consumer needs across the region and replicate home competencies in foreign
markets.
Citation
Robert Orina Osoro (2013). Entry Strategies Adopted By Kenyan Insurance Companies In Expanding To COMESA Region. Master Of Business AdministrationPublisher
University of Nairobi