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Localization Strategies Affecting Competitiveness of Multinationals in East Africa: Case Study of Systems Applications Products

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dc.contributor.author Njeka, Samuel
dc.date.accessioned 2015-05-06T08:58:56Z
dc.date.available 2015-05-06T08:58:56Z
dc.date.issued 2014-08
dc.identifier.uri http://erepo.usiu.ac.ke/11732/107
dc.description A Project Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract The purpose of this study was to determine the key localization strategies that can increase the competitiveness of Systems Applications Products in East Africa. To attain this, the study determined how understanding of the local market affects SAP competitiveness. It also looked at how organizational structure and people affect competitiveness. Lastly the study examined how opportunities and targets available in the market affect competitiveness. The study used descriptive research design to analyse localization factors in East Africa and how they affect competiveness. The study used cross sectional analysis to study all the 28 respondents who were employees of SAP East Africa who were all based in Nairobi Kenya. The primary data was collected using a questionnaire. A detailed research procedure was used to ensure the data obtained was accurate. Once the data was collected, it was edited, coded and cleaned. Statistical Product and Service Solutions (SPSS) was then used to analyse data. Descriptive data analysis was used. In the study, all measures of central tendency and measures of dispersion were be used. Data was then presented by way of tables and figures. The first objective was to determine the effects of market understanding on the competitiveness of SAP. The findings revealed that in order to understand the market and remain competitive it is important for SAP to have sufficient coverage of the East Africa market and have enough consultants to support customers. The second objective sought to determine the effects of organizational structure and people on competitiveness. The study findings showed that there was a significant relationship between linking workforce needs to strategy and having processes and procedures that allow the employees to effectively meet the customer needs A majority of the respondents were happy with the organization structure in terms linking workforce needs to strategy and growth plans, learning and development opportunities and career growth opportunities. The study also showed that there was a significant relationship between linking workforce needs to strategy and a clear organizational structure that improves productivity. However on the down side, a large number of the respondents believed that reorganizations at beginning of the financial year affected their effectiveness and delivery to the customers. The third objective sought to determine the effects of opportunities and targets available in the market on competitiveness. The study established that there is a significant relationship between opportunities and target available in the market and competitiveness. However part of the respondents felt that opportunities and targets available in the market had no relationship to competiveness. The study concluded that that success of a multinational and in particular SAP largely depends on how they can localize in order to meet customer needs. Coverage in the entire market is critical in order to attract more customers and at the same time be able to support them by having enough consultants. The way employees are treated in terms of training programmes, clear communication, and reward system is critical to the success of SAP as they have to maintain top talent. The need to clearly identify opportunities and targets early enough is critical to being competitive. The study recommends that for any multinational firm seeking to be competitive in East Africa, investment in market coverage support structure and aggressive pricing is critical. The study also recommends a proper streamlining of the segmentation process and an aggressive push towards the MCAAS model and more engagements with county governments. Future comparative research however needs to be done incorporating other multinationals like Microsoft, HP, IBM, and Oracle among others who operate in East Africa en_US
dc.publisher United States International University - Africa en_US
dc.subject Competitive Advantage en_US
dc.title Localization Strategies Affecting Competitiveness of Multinationals in East Africa: Case Study of Systems Applications Products en_US
dc.type Thesis en_US


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