Effect of multinational Chinese firms in competition with the local firms in Kenya
View/ Open
Date
2012Author
Gichuki, Ann Wambui
Type
ThesisLanguage
en_USMetadata
Show full item recordAbstract
Globalization is the ongoing social, economic, and political process that deepens and broadens the relationships and inter-dependencies amongst nations, their people, their firms, their organizations, and their governments. International competition involves the battle between businesses to win consumer acceptance and loyalty in the international field. As multinationals diversify through foreign direct investments in other countries, they are posing major threats to the local firms which in return have resulted to various tactics to ensure that their market share is not threatened by new entrants. This study was set to determine the effect of Multinational Chinese Firms in competition with the Local Firms in Kenya.
The study was conducted on a sample of 15 Multinational Chinese Firms and 25 Local Kenyan
Firms doing business in Kenya. Data was collected using questionnaires which were delivered to both Local firms and Multinational Chinese firms targeting middle level employees. The results were analyzed and the findings from the study indicate that Local Kenyan Firms are being adversely affected by the Multinational Chinese Firms in terms of pricing, quality and marketing of their products.
To remain competitive, the local firms have resulted to price reduction thus affecting their profits, advertisement thus increasing their expenses and quality improvement thus
a need for them to invest more in research and development. The findings of this study are important because they will assist in developing policies and strategies that will ensure that Local Kenyan Firms are able to compete successfully with the Multinational Chinese Firms in Kenya. This include as identified in the study, becoming more innovative, responding efficiently to customers' needs, developing affordable products, developing new & better quality attractive products and being proactive in coming up with competitive strategies to beat competition.
Publisher
University of Nairobi, Kenya