Influence of Globalization on Market Entry by Tullow Oil Company, Kenya

Abstract

There has been an increasing need for international investment which has attracted many international companies to engage in international business through use of globalization. However, many firms have succeeded while others have failed. This study was set out to determine the influence of globalization on market entry by Tullow Oil Company, Kenya. The study used a case study research design. This research design was considered in establishing the influence of globalization on market entry of Tullow Oil Company. This study used qualitative data and data was analyzed with the help of content analysis. The study found that globalization enhanced market entry which in turn contributed to international business. It was found that the success of Tullow Company penetration into the Kenyan market was largely attributed to globalization. This was because of increased communication, cheap labour and transport and cross-national cooperation between Kenya and the United Kingdom which impacted positively on business expansion and foreign direct investment. The study further concluded that trade barriers such as such as language, culture, and attitudes were overcame as a result of globalization. The major limitation for the study was to time and cost, the study limited itself to Tullow Oil Company, Kenya. Therefore the findings for this study might not be generalized or directly replicated in any other international oil company since the findings for this study are unique. The study recommends further study be carried out to examine the influence of globalization on market entrance. This will shed light on the ways globalization can be made use of as an avenue aimed at improving market entry in Kenya. Domestic companies will gain from modern technology technical knowhow and expertise thus contributing positively towards economic growth.