Foreign market entry strategies adopted by paint manufacturers in Kenya
Through foreign markets, companies can achieve opportunities for growth that may be unavailable in their domestic market, and capitalize on expertise and experience gained from long involvement in a type of business or some sophisticated technology. Foreign market entry strategies are numerous and imply a varying degree of risk and of commitment from the international firm. The study sought to establish the market entry strategies adopted by paint manufacturers in Kenya entering the Foreign Market. The study employed a descriptive study design. The population of the study was the four main players in the paint manufacturing business in Kenya: Crown Paints, Basco Paints, Sadolin and Solai Paints. The respondents comprised of marketing managers and sales managers of the leading paint manufacturing companies in Kenya who are based at the respective headquarters in Nairobi. The study employed both primary and secondary data. Primary data was collected using questionnaires, which were administered to the marketing managers or in their absence marketing staff with the help from research assistants. Secondary data was obtained from annual reports and journals of the target companies and the Kenya association of Manufacturers (KAM) website. Data collected from questionnaires was checked for completeness and accuracy, then it was coded. Statistical Package for Social Sciences (SPSS) was used to analyze the data. Descriptive statistics was used to analyze quantitative data. Descriptive statistics include; frequencies, percentages, measures of central tendency (mean), measure of dispersion (standard deviation). The data was presented using tables and graphs while explanation will be done in prose. The study concludes that foreign direct investment, influenced by host country environment is a key determinant of investment is the most widely used foreign market entry strategy by the paint manufacturers. This is followed by mergers and acquisitions, licensing and franchising, greenfield investments, turnkey contracting and joint ventures. The study has achieved its objective by identifying the attributes that answer the research question. This study also finds that Environmental Dependency theory offers the best explanation of the market entry strategies adopted by paint manufacturers in Kenya entering the Foreign Market.