Entry strategies adopted by National Industrial Credit (NIC) Bank in Kenya to enter into other East African markets
Increasing trade within the East African region is beginning to drive ever-increasing demand and opportunities for businesses in this region, leading to expansion or reorganization of Kenya-based banks in the region. Entry strategies are crucial to the survival of new firms as they ensure that firms are moving on the correct track right from the start without deviating from their goals. The selection of an appropriate strategy in a foreign market can have significant and far reaching consequences on a firm’s performance and survival. NIC Bank, one of large financial services provider is pursuing regional expansion programme, a strategy to meet the ever increasing demand for banking services in East Africa region. The study therefore sought to identify strategies used by NIC Bank to enter the East African market. The procedures for conducting the research are discussed in chapter three. The study was a case study on NIC Bank. Primary data was collected using self-administered interview guides. The target respondents were three senior managers of the bank in Kenya, Tanzania and Uganda. The interview guide contained open-ended questions. The open-ended questions enabled the researcher to collect qualitative data. Before processing the responses, the completed interview guides were edited for completeness and consistency. A content analysis was employed. Finally, the study reveals that NIC Bank moved into the East African markets through FDI. However, there are a couple of challenges facing the bank ranging from increased competition to corruption and government bureaucracy especially in Tanzania. As part of the recommendation, the research puts forward a necessity for thorough market analysis as a key step in the process of selection of market entry strategies. The study also recommends further research on other market entry strategies such as joint ventures adopted by other banks markets to enter other within the continent.