A Case Study of Davis and Shirtliff’s Response to Challenges of Expansion to Regional Markets

Abstract

In the current dynamic and highly competitive business environment, expanding beyond national border is a necessity not a luxury. The greatest market is outside the home country for any product; therefore expansion beyond national borders lies at the heart of each business that aspires to operate in foreign Markets. A firm follows a strategy that is intended to create a competitive advantage in the market place. The objective of this study was to find out the challenges faced by Davis and Shirtliff in their regional expansion program and their strategic responses to these challenges. The study was case based and utilized both primary and secondary data collected from the organization staff and documents respectively. The study targeted the five General Managers at the head office in Kenya and ten Subsidiaries managers. The data was collected with the help of an interview guide and a questionnaire. The data was analyzed using both statistical method and content analysis. The findings indicated low levels of disposable income, low pace of economic development, poor infrastructure, hostility of ethnic groups, tough tax laws, legal complexity, currency control, local people inability to learn new language, low labor quality, tough expatriate worker policies and tough investment laws posed a challenge to Davis and Shirtliff regional expansion program. The study also found that the organization responded to these challenges through stocking cheaper items, availing credit to their customers, closing big deals in forex, ensuring compliance with the regulations and undertaking staff training in the subsidiaries