Strategic responses by automobile dealers in Mombasa to government policy on used motor vehicle importation

Abstract

The objectives of the study were two; Firstly, to determine responses by automobile dealers in Mombasa to government policy on used motor vehicle importation. Secondly, to establish the strategies adopted by the automobile dealers to counter the government polices on used motor vehicle importation.

The study covered 30 automobile dealers in Mombasa. The data was collected using questionnaires and analyzed by using descriptive statistics which involved mean score and percentages.

The findings show that the used automobile dealers responded by forming collaborative partnership, embracing technology and diversified to related and unrelated industry in order to survive the change.

The findings of the study further show that the dealers tried to change their image, personnel, systems and controls. The large dealers managed because of huge capital reserve and strategic alliance with other dealers in the country of origin.

The findings also show that the industry in Mombasa is experiencing intense competition and some of the dealers apply strategies to help them survive and compete. The new dealers and used automobile dealers have similarities to some degree in the strategies they use but the new dealers are said to have better financial po\yer and have a higher budget to do promotions and advertisements and also train and develop their staff.