Entry strategies adopted by Kenya Commercial Bank Limited In East African Community market
Kenya commercial banks have shown their desire to have international presence and Kenya Commercial Bank is a classic example. Despite the concerted efforts by Kenyan firms to explore foreign markets, there seem to be little or no attention at all in literature concerning Kenyan firms seeking to expand in foreign markets. This study sought to identify the entry strategies adopted by Kenya Commercial Bank in the East African market. It used a case study research design to achieve this objective. Qualitative data was collected through interviews with 7 senior management staffs at KCB Group. The study revealed that KCB adopted Green field entry strategy where it starts operations in 100% KCB owned subsidiaries except where local laws do not allow such as in South Sudan. KCB choices were informed by available opportunities identified through market analysis. Entry strategies adopted by KCB have been successful safe for Tanzania which has been a struggle, while Sudan has been immensely successful. Timing of entry matters to KCB. The early mover advantage in South Sudan, for instance, has been beneficial to KCB. This study concluded that, although Green field strategy is expensive, KCB adopted it because it has a good financial base. In foreign expansion, firms should not be quick to duplicate their domestic marketing strategies but should be keen on customizing their strategies to resonate with the foreign markets' unique characteristics. This study recommends that firms seeking to expand in the East African region should assess various modes of entry and settle on the most appropriate based on internal organizational factors such as their capabilities as well as external factors such as business environment, economy, social and political aspects.
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