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EFFECTS OF STRATEGIC PLANS ON MARKET PENETRATION BY MULTINATIONAL INSURANCE COMPANIES IN KENYA

 

1* Nyarinda Change 2*Dr. Kepha Ombui 3*Dr. Mike A. Iravo

 

1*College of Human Resource and Development, Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000,00200 Nairobi, Kenya.

2* College of Human Resource and Development, Jomo Kenyatta University of Agriculture and Technology

3*College of Human Resource and Development, Jomo Kenyatta University of Agriculture and Technology

Corresponding Author email: nchange77@gmail.com.

 

CITATION: Change, N., Ombui, K., Iravo, A,. M,. (2016). Effects of Strategic Plans on Market Penetration By Multinational Insurance Companies In Kenya. International Journal of Strategic Management. Vol 5 (5). PP. 89 – 108.

 

ABSTRACT


Kenya like many other countries in sub-Saharan Africa has witnessed low insurance uptake explained by low income levels and lack of relevant products. The study aimed to assess the effects of strategic plans on market penetration by multinational insurance companies in Kenya. The data was analyzed and presented in form of tables. The study was guided by four objectives: product breadth, financial strength, product brand and risk appetite and targeted six multinational insurance companies operating in Kenya. The study was guided by three theories namely; theory of change, Porters theory of competitive advantage and the Resource based theory. The study adopted a descriptive research design and targeted multinational insurance companies operating in Kenya. The population intended was the top level management, middle level management and low level management with an intended sample of 106. The study also utilized secondary data. Data was analyzed using SPSS 20 and made use of descriptive and inferential statistics and presented the results in the form of tables. From the data analyzed, the study concluded from the co-efficient of determination that variations in the market penetration by multinational insurance companies were explained by Product Breadth, Financial Strength, Product Brand, and Risk Appetite. The study recommended Insurance companies in Kenya should develop more focused marketing and sales strategies. The net income ratio being a significant indicator of effective profit generation, insurance companies ought to monitor its changes and progress while at the same time the market share being an indicator of performance, insurance companies need to be aware of their current market share, why they stand as they are and what strategies they can adopt to ensure they increase in their market share. The sales pattern or trend with which sales of policy are growing can also be used by insurance companies to check on their performance and also how best the trend can be kept on an upward scale. The speed at which claims are settled as proven to be a corner stone in determining whether companies will retain and get new customer or lose them. Insurance companies should ensure that their underwriting is done promptly and accurately to ensure that consumers get their claims settled on time and in a professional manner.

Keywords: Financial strength, Product breadth, Product brand, Risk appetite, Market penetration

 

 

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