Entry strategies adopted by Kenya Commercial Bank Limited In East African Community market
Abstract
Kenya commercial banks have shown their desire to have international presence and
Kenya Commercial Bank is a classic example. Despite the concerted efforts by Kenyan
firms to explore foreign markets, there seem to be little or no attention at all in literature
concerning Kenyan firms seeking to expand in foreign markets. This study sought to
identify the entry strategies adopted by Kenya Commercial Bank in the East African
market. It used a case study research design to achieve this objective. Qualitative data
was collected through interviews with 7 senior management staffs at KCB Group. The
study revealed that KCB adopted Green field entry strategy where it starts operations in
100% KCB owned subsidiaries except where local laws do not allow such as in South
Sudan. KCB choices were informed by available opportunities identified through market
analysis. Entry strategies adopted by KCB have been successful safe for Tanzania which
has been a struggle, while Sudan has been immensely successful. Timing of entry matters
to KCB. The early mover advantage in South Sudan, for instance, has been beneficial to
KCB. This study concluded that, although Green field strategy is expensive, KCB
adopted it because it has a good financial base. In foreign expansion, firms should not be
quick to duplicate their domestic marketing strategies but should be keen on customizing
their strategies to resonate with the foreign markets' unique characteristics. This study
recommends that firms seeking to expand in the East African region should assess
various modes of entry and settle on the most appropriate based on internal
organizational factors such as their capabilities as well as external factors such as
business environment, economy, social and political aspects.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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