| dc.description.abstract | A major issue in international business is the appropriate choice of entry mode into foreign
markets. There are many ways of expanding a business. Expansion strategies fall in the
corporate level strategy as they relate to choices of product and markets for an organisation to
enter or exit. A firm will not select all of the possible expansion strategies but will choose one
or a combination of a few strategies based on various factors that are either internal or external.
The objective of this study was to establish the factors that have been considered in adopting
expansion strategies by Technobrain Kenya. The study was a case study as it focused on one
firm, Technobrain Kenya, where data was collected through interviewing the Chief Executive
and the Regional Director. Interviews allow people to convey to others a situation from their
own perspective and in their own words. The analysis of the data was done through content
analysis. Based on the findings it was clear that there were various factors that affected the
choice of the expansion strategies adopted by Technobrain. Technobrain had expanded through
market development, mergers and acquisitions, licensing, partnering and product development.
These expansion strategies were selected based on both internal and external factors as noted
by the respondents. The internal factors considered were either company factors or product
factors while the external factors were either market factors or marketing factors. Company
factors included market knowledge, overall goals of the firm, internal barriers and motives of
the company to expand. The only product factor that affected the choice of expansion strategy
based on this study was the nature of the product or offering. Market factors that were
considered included similarity of the markets, market life cycle, market growth rate, and level
of competition within the target markets. The marketing factor that was of influence in the
choice of expansion strategy was communication strategy that was to be adopted in the markets.
The study concluded that the careful consideration of these factors in selection of expansion
strategies had played a great role in the growth of the firm over the last 17 years that has seen
Technobrain Kenya grow to serve 22 countries and provide end to end IT solutions. Due to the
fact the study focused on one firm, there is a risk of generalization. However the study also
noted that a lot can be learnt from a particular case. The study recommended that organisations
should carefully consider internal and external factors when making a decision on which
expansion strategies to adopt as this will provide them with clear direction as they expand based
on their internal capacity and the industry that they operate in. The study suggested that further
research can be done on other companies especially in the IT industry in Africa as well as
studies on the expansion strategies adopted by other African companies into Africa and beyond
irrespective of the industry and making comparison to the IT industry. | en_US |
