Factors Influencing Entry Into Regional Markets by Kenya Commercial Bank

Abstract

International market selection is one of the most important decisions to he made by organisations engaging in international trade. The number of firms that have been operating in the international market in response to lowering of the barriers to international trade has been increasing. At the same time, for a firm to remain competitive in the international market, there is the need to adopt strategies that necessitate growth. This research study was designed to investigate the factors influencing entry into regional markets by Kenya Commercial Bank. The specific objectives of the study were to establish factors influencing the entry of KCB into regional markets and the influence of the external and internal environment in determining the market entry mode adopted by KCB. To achieve these objectives the study adopted a qualitative case study research design. The findings of the study concluded that the key forces governing the internationalization of service firms are firm-specific, ownership specific and internationalization advantages. To successfully enter and conduct business in a foreign market, the MNE must possess ownership specific advantages that are unique to the firm relative to other firms already doing business in the market as they seek to take advantage of opportunities in the external environment. The dynamism in the banking sector is expected to continue in future as financial institutions seek and explore new opportunities locally and internationally to maintain their growth momentum and to consolidate their market opportunities.