Critical success factors for minibus dealers in Kenya: a comparison of the seller and buyer perceptions
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 .