Choice of foreign country entry strategies for global firms: a case of Ericsson Kenya

Abstract

Global companies are left with no choice but to compete on a global scale. This is occasioned by shrinking of markets within their immediate environment, spreading of customers and intensification of business. How they spread out and penetrate other foreign markets remains critical in them achieving their business objectives. Foreign markets are characterized by change of environment and increased competition. The choice of entry strategies into these· countries remains critical to their success. The study focused on strategies used by Ericsson to enter the Eastern Africa region using an operational base in Nairobi Kenya. Data was collected using in-depth interviews with senior managers at Ericsson Kenya. Information was analyzed using content analysis. From the findings Ericsson established Ericsson Kenya as a subsidiary to help it conquer the Eastern Africa market in the Telecommunication sector. Whereas it exports equipment to the region from outside plants, Ericsson has set up a regional office in Kenya to serve as a centre for exportation of service to the region. The study revealed that for Ericsson, keeping close to the customer and offering good service remains very strategic in their foreign business expansion in the region. While following the values of the parent company, Ericsson Kenya has allowed localization through development and training of the locals to run the regional company. Ericsson Kenya collaborates and co-operates a lot with other regions within the market unit in a bid to benefit from economies of scale and information exchange.