| dc.description.abstract | The objective of this study was to determine the challenges of implementing entry strategies in East African Market by Ernst & Young. Like any other organization, Ernst and young encountered several challenges in its expansion strategy to the East t African market. The study used a case study design where only one organization was involved. Primary data was collected by use of an interview guide while secondary data was collected from documentations at the organization's premises. The primary data was analyzed using content analysis and presented in prose format.
The study established that the organization evaluated several strategies in its new market entry strategies for market expansion in East African Community. The strategies evaluated included exporting, licensing, joint ventures, foreign direct investment, franchising and forming strategic alliances. However, to enter the East African market, the organization made use of exporting strategy for Rwanda and Burundi, and acquisition for Kenya and Uganda.
The entry into these markets encountered several challenges including limited financial resources to fund the expansion program, limited competent skills that the organization could recruit locally in some of the countries, political instabilities which made it difficult for the organization to set up offices in some countries and harsh regulatory framework which limited the formation of limited liability companies.
To counter these challenges, the organization sourced cheaper sources of funds, established its own internet infrastructure in Rwanda and Burundi and recruited and trained employees to build internal capacity. With increased globalization and internationalization of firms, new market entry ensures that an organization expands its market share hence improvement on its revenue and profitability. | en_US |
