Analysis of the modes of entry into the central East Africa market for a multinational enterprise

摘要

The research problem addressed in this study is to determine the potential of selling and marketing consumer goods by Multinational Enterprises (MNE) within the African markets. The mode of entry, the timing of entry, the different modes of entry, selection of the entry mode, the political and economic risks, core competencies of the company and strategic alliance was researched. To achieve this, research was executed on the above areas of importance using relevant literature in which an understanding of the international markets and their options of modes of entry were highlighted. In this way one is able to understand the importance of the international markets and the concerns of doing business in Africa in order to select the entry mode that could best suit the company and the country or countries in Africa. The literature study was then used to develop a questionnaire to test the degree to which managers in MNE in South Africa (SA) and Central East Africa (CEA) concur with regard to the decisions, risks, procedure, modes of entry and selection of modes of entry into Africa. The empirical results obtained indicate a strong concurrence with the analysis of the modes of entry into CEA market for an MNE. The analysis of the literature study, Chapter 2 and 3, gives business a good understanding of the advantages and disadvantages of the problems and opportunities associated with the entry decisions into CEA. Many other companies are entering the African markets from other parts of the world and SA has also been seen as a launching pad into Africa. The analysis will give companies the edge in seeing the problems and opportunities in African markets and the way forward when deciding to enter.