Strategic Responses to Challenges of International Expansion by Aga Khan University Hospital, Nairobi

Abstract

The purpose of the study is to investigate strategic responses to challenges of international expansion by Aga Khan University hospital. International expansion of business has taken on many facets in terms of trade, investment & ownership, manufacturing & sourcing, markets & customers, finance and technology. International expansion has also resulted in the creation of integrated world markets, particularly in the areas of pharmaceuticals and hospital supplies and equipment including ICTs. The literature is mainly on the international expansion in health industry and challenges of international expansion on health industry. The research design was a case study of Aga Khan Hospital in Kenya. The primary data was collected through interview guide which was targeted at senior-level managers. Secondary data on strategic plans was obtained from the records of Aga Khan Hospital in Kenya. The study found that internationalization process is very complex - first to discover the most attractive target market, then, to form a successful marketing strategy with which to enter this market, and also, to form a well working organisation which supports the marketing strategy. The study contributes to Internalisation expansion theory whose aim includes the interpretation of the current events on the international sphere in terms of development, economic conditions, social scenarios, and political and cultural influences. The management of Aga Khan University Hospital will find this study an important insight into the strategies the company has been using in responding to the challenges of international expansion The study concludes that to respondent effectively to strategic changes in globalization, AKUH needs to plan a successful strategy for internationalization the company has to know the current situation of the company itself as well as the situation in the target market. This can be done by carefully analysing the company itself and the target market. The study recommends that when a strategy is being formulated the company should first develop a mission statement that attempts to clarify an organization’s values, purposes, and directions.