Foreign Market Entry Strategies Used by Multinational Pharmaceutical Firms in Kenya

Abstract

The main objective of this study was to determine entry strategies used by multinational pharmaceuticals firms in Kenya. Despite abundant research on entry strategies in International Business (IB) studies, scholars have paid scant attention to the social context within which entry strategies into foreign markets are embedded. The research adopted cross sectional and descriptive survey method aimed at establishing entry strategies used by multinational firms in Kenya. The study relied on primary data which was collected through administering structured questionnaire comprising of closed and open-ended questions; developed in line with the objectives of the study.The target population of this study consisted of 15 multinational pharmaceuticals firms in Kenya with an average 3 to 5 partners in each firm giving 45partners.The response was from 35 respondents who returned the questionnaire fully answered giving a response rate of 77.7% which was adequate for the study. The data was analyzed using tables and percentages, C. mean and standard deviations. Statistical Package on Social Sciences version 17 was used for statistical analysis views on entry strategies used by multinational pharmaceutical firms in Kenya. The research findings show that Firms that want to internationalize must decide on a fitting mode of entry into a foreign market in order to make the best use of their resources. According to Wood and Robertson (2004) the age of globalization has both facilitated and necessitated business to move towards the internationalization of organizations of all sizes. Once an entry mode has been chosen, the company has to decide the degree of its marketing involvement and commitment. If companies assess all the factors positively, they are likely to decide to make capital investments in that foreign market. If the company assesses some of the factors negatively, they are likely to choose non-equity modes of entry, or to exclude that market from doing business. It is recommended that companies that want to expand their activities in global markets need to do some market research and analysis. One of the fundamental steps that need to be taken prior to beginning international Pharmaceutical Firms is the environmental analysis, to ensure these firms have the strategies to cope with future challenges and exploit the opportunities fully. In many cases, there are many obstacles that companies have to meet while deciding to enter other markets, for example; safety. environmental, trademarks and copyrights, are factors that businesses depend on being successful.