Title page for ETD etd-03312010-143313


Document Type Master's Dissertation
Author Mushudu, Tawanda James
URN etd-03312010-143313
Document Title Modes of market entry and strategies for South African companies doing business in Tanzania
Degree MBA
Department Gordon Institute of Business Science
Supervisor
Advisor Name Title
Dr M Davies Supervisor
Keywords
  • international business enterprises
Date 2007-04-08
Availability unrestricted
Abstract

This research identifies modes of market entry and strategies adopted by South African companies doing business in Tanzania. Data was collected through one-onone semi-structured interviews with South African company executives in banking, retail, manufacturing, financial services, and hospitality and engineering construction sectors. The study found that the mode of market entry was related to the degree of commitment of resources irrespective of the industry sector. The mode of market entry for the banking sector was influenced by the degree of politicisation as this is highly regulated. Acquiring state owned firms in privatisation partnership with government had the obvious advantage of being close to the pulse of policy thinking. Business in Tanzania thrived on relationships, partnering with locals using joint ventures or acquisition as modes of market entry mitigated risk. Greenfield investments in the retail sector were largely unsuccessful due to a lack of knowledge about retail supermarkets by locals, a fragmented sector and fierce informal market competition.

Tanzania is as an entry point into the wider EAC that includes Kenya, Uganda, Rwanda, Burundi, DRC, Malawi and Sudan. Regionalism has resulted in significant gains for SA companies in Tanzania. Operational challenges in Tanzania were similar with what the literature proposes on emerging market economies: lack of skills, exchange rate volatility, corruption, regulatory burdens, poor infrastructure, thriving informal markets, and lack of law enforcement, thefts and anti-SA sentiments all adding to the cost of doing business. This study further proposes a model that SA companies can consider as part of their strategic planning process for internationalisation of business in the East African Community.

2006 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria

Please cite as follows:

Mushudu, T 2006, Modes of market entry and strategies for South African companies doing business in Tanzania, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03312010-143313/ >

G10/252/ag

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