Critical success factors for minibus dealers in Kenya: a comparison of the seller and buyer perceptions
Abstract
What does it take to be successful in a business? The answer is Critical Success Factors.
There are a number of environmental factors that have recently affected the automobiles
industry. The global economy is experiencing a sharp downturn coupled with uncertainty
about economic and political environments in the industry. The motor vehicle industry in
Kenya is facing intense competition from imported second-hand vehicles, mainly from
Japan and United Arab Emirates. These imports now account for about 70% of the
market. The last decade witnessed a significant decline in the number of new vehicles
sold in the country. Thus, the motor industry in Kenya needs to identify and analyze the
limited number of areas in which high performance will ensure a successful competitive
position.
There is anticipated growth in the minibus sector in Kenya due to reforms by the
government that will change Public Service Vehicle (PSV) rules in the Central Business
District (CBD) of Nairobi, Mombasa, Kisumu, Nakuru , Eldoret and Thika that will see
the fourteen seater microbus phased out to only allow twenty five seater minibuses in the
CBD. The growth in this sector could mean new entrants in the sector and intense rivalry
to lock in customers. This study has identified CSFs for the minibus dealers‟ which
should be used by executives in this sector to develop strategies for survival. Factors
which were found to be most important to buyers and which should be emphasized by the
sellers include; after sales service, quality, product availability, good financial image of
the company, quality customer care and competitive pricing in that order .
Publisher
University of Nairobi
Description
MBA Thesis