A CASE STUDY OF DAVIS AND SHIRTLIFF’S RESPONSE TO CHALLENGES OF EXPANSION TO REGIONAL MARKETS

In the current dynamic and highly competitive business environment,
expanding beyond national border is a necessity not a luxury. The greatest
market is outside the home country for any product; therefore expansion
beyond national borders lies at the heart of each business that aspires to
operate in foreign Markets. A firm follows a strategy that is intended to create
a competitive advantage in the market place.
The objective of this study was to find out the challenges faced by Davis and
Shirtliff in their regional expansion program and their strategic responses to
these challenges. The study was case based and utilized both primary and
secondary data collected from the organization staff and documents
respectively. The study targeted the five General Managers at the head office
in Kenya and ten Subsidiaries managers. The data was collected with the help
of an interview guide and a questionnaire.
The data was analyzed using both statistical method and content analysis.
The findings indicated low levels of disposable income, low pace of economic
development, poor infrastructure, hostility of ethnic groups, tough tax laws,
legal complexity, currency control, local people inability to learn new
language, low labor quality, tough expatriate worker policies and tough
investment laws posed a challenge to Davis and Shirtliff regional expansion
program. The study also found that the organization responded to these
challenges through stocking cheaper items, availing credit to their customers,
closing big deals in forex, ensuring compliance with the regulations and
undertaking staff training in the subsidiaries

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