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Influence of Market Entry Strategies on Performance of Foreign Retail Chains in Kenya

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dc.contributor.author Al-Maery, Mohamed Salim
dc.date.accessioned 2018-10-05T08:34:51Z
dc.date.available 2018-10-05T08:34:51Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4016
dc.description A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirements for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract The general objective of the study was to assess the influence of market entry strategies on the performance of foreign retail chains in Kenya. This particular study was guided by the following specific objectives: to examine how exporting affects the performance of foreign retail chains in Kenya, to examine how licensing affects the performance of foreign retail chains in Kenya, to examine how joint ventures affect the performance of foreign retail chains in Kenya and to examine how foreign direct investment affects the performance of foreign retail chains in Kenya. The population of this study was all the 43 managers of foreign retail chains operating in Kenya. The sampling frame for the study therefore constituted the foreign retail chains operating and registered in Kenya as per the listing published by the Kenya Association of Manufacturers. The study adopted a descriptive research design which was appropriate for the study because it necessitates collection, organization and summarizing of data from a sample for conclusions. For the purpose of this study, a combination of both purposive and simple stratified random sampling technique was applied in identifying the sample units. The study sample size was 50% of the target population which translates to 22 respondents. The data analysis involved measures of central tendency and frequencies. The data was then presented by bar graphs, pie charts and frequency tables. The study revealed that there is a positive relationship between the exporting strategy and organization performance due to a beta value of 0.496. The beta value for licensing strategies was 0.509 which implies that there is a positive relationship between licensing strategies and organization performance too. In the case of joint venture strategy, the beta value was 0.411 which demonstrates that there again is a positive significant relationship between joint venturing and organization performance. Finally, the study revealed that foreign direct investment too had a positive significant relationship with organizational performance, a conclusion derived from its beta value of 0.513. The study concluded that there is a positive relationship between exporting strategy and organization performance and further concluded that exporting strategy increases international sales for retail chains, results in higher levels of absolute growth for retail chains, increases market share for retail chains, enhances profitability of retail chains, requires less cost of investment in a foreign country and enhances organization performance. The study also came to the conclusion that there is a positive relationship between licensing strategy and organization performance as it permits fuller replication of the internal structures and normative values, with less internal disruption, results in improved performance in terms of risk and control of the business, increases market share for retail chains, enhances profitability of retail chains, enhances access to quality material for retail chains and enhances organization performance. The study also concludes that there is a positive relationship between joint venturing strategy and organization performance and furthermore concludes that joint venture strategy leads to enhanced global service networks for retail chains, enables retail chains to establish new markets without providing products and services which would be unprofitable if operated alone, increases market share for retail chains, enhances profitability of retail chains, requires less cost of investment in foreign country and enhances organization performance. Finally, the study draws up a conclusion that there is a positive relationship between foreign direct investment strategy and organization performance too. The study indicates that FDI strategy increases international sales for retail chains, results in higher levels of absolute growth for retail chains, increases market share for retail chains, enhances profitability of retail chains, helps retail chains to obtain sustainability in the competitive business arena and finally enhances organization performance. The study therefore recommends that retail chains wanting to penetrate the Kenyan market to do so by adopting exporting strategy. The study also recommends the need for retail chains that want to penetrate the Kenyan market to adopt licensing strategy. However, licensing entry strategies are determined by the degree of conformity to internal pressures. The study further recommends the need for retail chains wishing to penetrate the Kenyan market to adopt joint venturing strategy and furthermore recommends the need to harmonize all joint venturing activities. Finally, the study recommends the need for retail chains wanting to penetrate the Kenyan market to adopt foreign direct investment strategy. Promoting investment opportunities in host countries to potential foreign investors is part of the general growing field of marketing of places. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Market Entry Strategies en_US
dc.subject Performance en_US
dc.subject Foreign Retail Chains en_US
dc.subject Kenya en_US
dc.title Influence of Market Entry Strategies on Performance of Foreign Retail Chains in Kenya en_US
dc.type Thesis en_US


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