Analysis Of Kenya’s Suitability for Pathao’s

Business

i
 Group Project on Kenya

Date of Submission 24/09/2020

Course Code BUS251

Course Name Business Communication
Semester Summer 2020
Section 08

Submitted by Submitted to
ID Name Contribution Mohammad Asif
Gazi (MAG)
1230919030 Mahmudul Hasan 0%
Lecturer
1620969020 Nayeema Nusrat Zaman 33.33%
Department of
1712941630 Kazi Anwar Hossain 33.33% management
North South
1812771030 University
Mir Mahruf Hossain Alif 33.33%

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Contents
Letter of transmittal........................................................................................................................ v
Executive Summary ....................................................................................................................... vi
1.0 Introduction ............................................................................................................................... 1
1.1 Background of the study ....................................................................................................... 1
1.2 Rationale of study ................................................................................................................. 1
1.3 Problem statement ................................................................................................................. 2
1.4 Purpose statement ................................................................................................................. 2
1.5 Research methodology .......................................................................................................... 2
1.6 Limitations ............................................................................................................................ 2
2.0 Country Description .................................................................................................................. 3
2.1 Climate .................................................................................................................................. 3
2.1.1 Analysis: ........................................................................................................................ 3
2.2 Technological environment .................................................................................................. 3
2.2.1 Analysis: ........................................................................................................................ 3
2.3 Political environment ............................................................................................................ 4
2.3.1 Analysis.......................................................................................................................... 4
2.4 History of the country ........................................................................................................... 4
2.4.1 Analysis: ........................................................................................................................ 4
2.5 Geography of the country ..................................................................................................... 4
2.5.1 Analysis: ........................................................................................................................ 5
2.6 Economy ............................................................................................................................... 5
2.6.1 Analysis: ........................................................................................................................ 5
3.0 Communication Pattern & Culture ........................................................................................... 6
3.1 Verbal and nonverbal communication .................................................................................. 6
3.1.1 Analysis.......................................................................................................................... 6
3.2 Roles and mannerisms: ......................................................................................................... 6
3.2.1 Analysis: ........................................................................................................................ 7

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 3.3 Attitude toward materialism: ................................................................................................ 7
3.3.1 Analysis: ........................................................................................................................ 7
3.4 Time awareness differences: ................................................................................................. 7
3.4.1 Analysis: ........................................................................................................................ 7
3.5 Concept of personal space: ................................................................................................... 8
3.5.1 Analysis.......................................................................................................................... 8
3.6 Tone of communication: ....................................................................................................... 8
3.6.1 Analysis: ........................................................................................................................ 8
3.7 Culture: ................................................................................................................................. 8
3.7.1 Analysis.......................................................................................................................... 9
4.0 Market & Competition ............................................................................................................ 10
4.1 Business environment in Kenya.......................................................................................... 10
4.1.1 Analysis: ...................................................................................................................... 10
4.2 Ride sharing industry Analysis ........................................................................................... 10
4.2.1 Analysis........................................................................................................................ 11
4.3 Direct competitors ............................................................................................................... 11
4.3.1 Indirect competitors ..................................................................................................... 11
4.3.2 Analysis........................................................................................................................ 11
4.4 Tourism Market Overview .................................................................................................. 12
4.4.1 Analysis........................................................................................................................ 12
4.5 Impact of COVID-19 in tourism market ............................................................................. 12
4.4.1 Analysis........................................................................................................................ 12
4.6 Advertising strategy ............................................................................................................ 12
4.7 Organizational strategy ....................................................................................................... 13
5.0 SWOT Analysis ...................................................................................................................... 14
5.1 SWOT matrix:..................................................................................................................... 14
5.1.1 Analysis: ...................................................................................................................... 15
6.0 Conclusion .............................................................................................................................. 16
References ..................................................................................................................................... 17

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 Letter of transmittal
24th September, 2020
Mohammad Asif Gazi (MAG)
Full Time Faculty, Lecturer
Department of Management
North South University
Dear Sir,
It is indeed a pleasure for us to be able to present you a copy of our group project.
In this project, we have analyzed various aspects of Kenya in order to determine whether Pathao
should expand its business to Kenya. We have tried to implement the knowledge that we have
acquired from this course in this project.
We are hopeful that this project will reflect the knowledge and skills that we have garnered on
business communication.
Sincerely,
Mir Mahruf Hossain Alif
(On behalf of the group members)

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Executive Summary
Our team has recently been contacted by the CEO of Pathao, Mr. Hussain Elius. Pathao, a
renowned sharing company in Bangladesh. Mr. Elius asked our team to explore the feasibility of
expanding Pathao internationally. In this study, we have examined whether Kenya would be a
suitable country for Pathao to expand to.

Background: Our purpose is to determine whether it would be feasible for Pathao to expand its
business to Kenya. So some background studies have been done on the existing ride sharing
companies in Kenya from various articles. This information will give Pathao a general idea of
how to set up their goals.

Research Methodology For this study our team has used the secondary data to research the
country’s climate, technological and political environment, history and geography of the country,
communication and cultural pattern, economic condition, market and competitions. We sourced
our secondary data from various web searches, using standard search engines just as Google also
international news sites. We analyzed whether it will be favorable for Pathao to expand their
business in Kenya..

Country Description: Kenya has a very stable political and economic environment. The vast
population of Kenya increases the number of potential target audiences for Pathao. Also, since
Kenya is a large country, any ride sharing company would want to offer its service in Kenya.

Kenya is a technologically advanced country, even in the remote areas the internet connectivity
is powerful, which makes Pathao an ideal country for Pathao to expand to.

Bangladesh and Kenya have many similarities in terms of culture, collective society, family life,
power distance, and norms. So it will be easier to cope up with their culture easily. Also, cultural
festivals happen throughout the year in Kenya like Bangladesh, so Pathao would be a great
chance to maximize their ride in this festive time.

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Weather wise Kenya is not much suitable for ride sharing experiences as it is mostly rainy.
Another drawback of Kenya would be the high level of crime and terrorist activities. It will be
tough for Pathao to carry on business there.

Communication Pattern: English is one of the two widely spoken languages in Kenya. Besides
English, they have another language called Swahili, so Pathao needs to plan about this language
and work on it.

Market Description: Kenya’s top leading ride-sharing companies also direct competitors of
Pathao would be Taxify, Little, and Uber; they are the market leader in Kenya. Among these
three, Taxify is in the top position because they offer the minimum charge among them. So
Pathao also needs to focus on minimum fares, and they need to come up with some great ideas to
capture this busy market.

Kenya is a hotspot for tourism, so Pathao have an excellent chance to create some new services
for foreign visitors to capture this tourism market. In tourist spots, they have to increase their ride
and offer good service to attacked customers.

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1.0 Introduction

1.1 Background of the study

Pathao is a trusted name in the ride-sharing arena of Bangladesh. Pathao, founded in 2015, is
currently one of the leading ride-sharing companies in Bangladesh (Ria, 2019). However,
Pathao’s journey has not been buttery smooth since the beginning. Pathao kicked things off with
an online-based delivery service (Ria, 2019). Although delivery success did not bring about
groundbreaking success for Pathao, it set the tone for something more innovative.
After quite a few ups and downs, Pathao introduced an online-based motorbike sharing service in
2016, which was completely unheard of in Bangladesh (Mamun, 2017). Fast forward to 2020,
Pathao is one the most successful players in Bangladesh's ride-sharing industry. Pathao, despite
being a successful ride sharing company in Bangladesh, did not achieve any notable success in
the international arena. As of 2020, Pathao is not even available outside of Asia. Aside from
Bangladesh, Pathao is only available in Kenya (Antara, 2018).
Given the situation, Pathao is planning on starting a new venture in a non-Asian country. This
study will determine whether Kenya would be a suitable country for Pathao to expand to.

1.2 Rationale of study

Pathao, a renowned Bangladesh-based ride sharing company, is planning on expanding to a
foreign country. While Pathao has been highly successful in Bangladesh, It achieved very little
success in the international arena. Given the situation, it is very much essential for Pathao to
expand its business to a foreign country.
In order to start a venture in a new country, it is of utmost importance that the feasibility of that
particular country is assessed. The probability of success for expanding into a new market
depends on the degree to which that particular market is suitable for a business.
From a marketing consultant’s viewpoint, it would be suggested that Pathao expands to a non-
european and non-english speaking country like Kenya for better efficiency. In this study,
different aspects of Kenya will be analyzed to determine whether Pathao’s business would be
suitable for Kenya.

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1.3 Problem statement
To find out whether it would be feasible for Pathao to expand its business to Kenya.

1.4 Purpose statement

● To conduct an in-detailed analysis of the various aspects of the country, which includes,
climate, politics, history, geography, technology, economy, and so on.
● To extract relevant information on the communication pattern of the country, and analyze
them carefully.
● To conduct a market analysis of the country and find out relevant data to the study.
● To conduct a SWOT analysis of the country in order to have a proper understandingof the
country.

1.5 Research methodology

For this study, secondary data sources will be used. To analyze Kenya's overall atmosphere, data
will be collected from various secondary sources such as online articles, blogs, formal research
papers, standard websites, e-books, and so on. For referencing, standard APA citation method
will be followed.

1.6 Limitations
Limitations of the study are as follows:
1. The study is based on secondary data.
2. As primary data are not available, the study will be prone to subjective bias to some
extent.
3. Potential in Kenya will not be interviewed.
4. Lack of firsthand knowledge about Kenya.

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2.0 Country Description

2.1 Climate
The climate of Kenya varies depending on the regions. While its northern part is mostly semi-
arid, the central and western regions experience high rainfall ("Pestel Analysis Of Kenya",
2018). The average level of rainfall varies from 40 cm to 70 cm ("Kenya - Climate", n.d.). While
the average temperature in the northern region is around 29 degree celsius, the rest of the regions
experience an average temperature of 27 degree celsius ("Kenya - Climate", n.d.).
2.1.1 Analysis:
Since Pathao will offer app-based bike sharing service in Kenya, it needs to choose a
comparatively dry region. Regions with high rainfall would not be recommended because
passengers usually prefer bus rides to bike rides when it rains. The average temperature is very
similar to that of Bangladesh. So, it is safe to say that Pathao would not have make drastic
changes in its service to match Kenya’s temperature if it expanded its business there.

2.2 Technological environment

Kenya is one of the most technologically advanced countries in Africa. Its internet connectivity
is one of the best among African countries. Recently, Google has launched 4G enabled balloons
in Kenya, which will provide 4G internet access to the people living in Kenya's remote villages
("4G internet balloons take off over Kenya", 2020). Moreover, there has been an increasing
demand for computers in Kenya over the last few years ("Pestel Analysis Of Kenya", 2018).
2.2.1 Analysis:
With time, Kenya is improving in the field of technology. Since Pathao’s service model is app-
based, the country that Pathao is planning on expanding to must be advanced in terms of
technology. Provided that Kenya has robust internet connectivity even in the remote areas,
Pathao would surely want to seize the opportunity to start a venture there.

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2.3 Political environment
Being a democratic country, Kenya has a moderately stable political environment. Although
African countries have a bad reputation for having a hostile political environment, Kenya is
surprisingly stable. As a matter of fact, Kenya is considered to be one of the most stable
countries when it comes to politics. Interestingly, Kenya has been titled “ the showpiece of
Africa” for its stable political environment (Tamarkin, 1978).
2.3.1 Analysis
A stable political environment plays a vital role in international business. No company would
want to expand to a country with a hostile political environment, and Pathao is no exception.
Kenya, having a very stable political environment, could just be the ideal country for Pathao to
expand to.

2.4 History of the country

Kenya is a developing country in Eastern Africa, it became independent on December 12, 1963.
The transportation infrastructure that developed both before and after independence allowed
Kenya to emerge as a viable state. Despite being a politically stable country, terrosrist activities
and crime are very high in Kenya. ("Kenya: Geography, Culture and Economics - BORGEN",
n.d.) However, Kenya's economy is steadily increasing and the country remains a tourism
hotspot.

2.4.1 Analysis:

As Kenya has a stable economy it would be adequate for them to start up in Kenya. Also being a
hotspot for tourism, Pathao can get benefit out of that, as not only the locals but also the tourists
can use transportation systems like Pathao. However, due to high crime levels and terrorist
activities, Kenya might not be an ideal country for Pathao to expand to.

2.5 Geography of the country

Kenya, Africa is the world’s forty-seventh largest country and has a square footage of over
224,000 miles. Kenya is situated on the equator and shares borders with Tanzania, Uganda,

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Ethiopia, South Sudan and Somalia. The city Nairobi is situated at the Southern end of the
agricultural heartland and center of Kenya. It is the largest city of Kenya with a population of
2,750,547.

2.5.1 Analysis:

Kenya has a large country with a huge population. In fact, the largest city, Nairobi, has a
population of over 2.7 million. This, of course, is one of the positive aspects of Kenya. The
number of people living in Kenya is high, which means the number of potential target audience
for Pathao is high too. Also, since Kenya is a large country, any ride sharing company would
want to offer its service in Kenya.

2.6 Economy
Having a market-based economic system, Kenya has one of Africa's fastest growing economies
("The world bank in Kenya", n.d.). In 2019, Kenya experienced an average economic growth of
5.7% ("The world bank in Kenya", n.d.). Moreover, Kenya has a bilateral trade agreement with
Bangladesh ("Kenya - Trade Agreements | Privacy Shield", n.d.). On top of that, Kenya has a
free trade system, which means it is open to international trade.

2.6.1 Analysis:

Since Kenya has a bilateral trade agreement with Bangladesh, it will be easy for Pathao to
establish its operations in Kenya. Also, Kenya has a market based economy and a free trade
system, which are essential for international business. To sum up, Kenya has a lot to offer to the
foreign investors.

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3.0 Communication Pattern & Culture

3.1 Verbal and nonverbal communication

The communication pattern of Kenya is broken down below:
Languages: Swahili and English.
Attitude: Collectivistic.
Power distance: High at 70% ("Kenya* - Hofstede Insights", n.d.).
Masculinity: Moderately high at 60% ("Kenya* - Hofstede Insights", n.d.).
Uncertainty avoidance: 50% : no clear preference. ("Kenya* - Hofstede Insights", n.d.).

3.1.1 Analysis
From the data given above, a brief idea about Kenya’s communication pattern can be obtained. It
can be seen that English is one of the two widely spoken languages in Kenya. So, Pathao can
easily design its promotional campaigns for Kenya. However, Kenya does not have any clear
preference for uncertainty avoidance, which indicates that Kenyans might not be very
comfortable with trying out new products and services. Of course, this is a matter of concern for
Pathao as it would be a new service in Kenya.

3.2 Roles and mannerisms:

In Kenya, different kinds of gestures and postures are practiced. They prefer handshake as their
most common greeting. Males usually do not shake hands with females. ("Cultural Information -
Kenya | Centre for Intercultural Learning", n.d.). When they shake hands, they say 'Jambo,'
which means 'how are you.' Also, they ask about health, family, and so on. Kenyans prefer
having their academic and professional honor beside their surname. Close friends or relatives call
each other by nicknames or professional titles. Children address adults as “uncle” and “aunt”.
Women over 21 are called “mama” and men over 35 are called “mzee” (Commisceo global,
2020).

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3.2.1 Analysis:
From the above discussion one thing is evident that the Kenyan gestures and postures have slight
similarities to those of Bangladesh. For example, in the first meeting Kenyans greet with a
handshake. Also, Kenyans have some unique mannerisms. Pathao needs to consider these unique
traits, and carefully to tune its service to the Kenyans’ preferences.

3.3 Attitude toward materialism:

Kenyan youth are materialistic to a great extent. Being overly materialistic, the Kenyan youth
always want to portray an upscaled image of themselves to the society. Moreover, people in
Kenya are very conscious of their social status ("Poor Life Choices Among the Youth", 2014). In
fact, Kenyans love to associate themselves with expensive brands. Kenyans' overly materialistic
attitude can be attributed to peer pressure ("Poor Life Choices Among the Youth", 2014).

3.3.1 Analysis:
Since Kenyans are materialistic, they, of course, tend to spend a lot of money. This is a positive
indication for Pathao in a sense that Pathao offers a wide range of service, and it wants people to
try out all the services. Being overly materialistic, Kenyans would surely want to try out Pathao’s
services. Also, since Kenyan’s love expensive brands, Pathao needs to position itself accordingly
in its target audience's minds.

3.4 Time awareness differences:

As an African country, Kenya is very much flexible with time commitments. For example, if
Kenyans are asked to attend a 10 am meeting, they are most likely to show up at 10:30 am. So, it
is safe to assume that Kenyans follow the polychronic time system. In a polychronic time
system, people tend to be flexible with time. In Bangladesh, people tend to follow the
polychronic time system, as well.
3.4.1 Analysis:
Both Bangladesh Kenya tend to follow the polychronic time structure. Which means, people in
both the countries are flexible with time commitments. So, for Pathao, it will not be a difficult
task to understand the Kenyans’ perception of time.

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3.5 Concept of personal space:
Kenyans do not usually maintain a distance while speaking to one another. They are okay with
standing close to one another. Kenyans would stand at an arm's length while having a
conversation ("Cultural Information - Kenya | Centre for Intercultural Learning", n.d.). Kenyans
consider standing close to one another to be more engaging. However, westernized Kenyans,
being influenced b western culture, tend to have a specific distance while speaking to one
another ("Cultural Information - Kenya | Centre for Intercultural Learning", n.d.).
3.5.1 Analysis
The concept of personal space is, more or less, identical in both Kenya and Bangladesh. So,
Pathao does not need to tweak its service to match the concept of personal space in Kenya.

3.6 Tone of communication:

Kenyans usually interact in a very gentle manner ("Kenyan Culture - Communication", n.d.).
They are usually not harsh with one one another. Moreover, Kenyans respect their elders’
opinions. Also, Kenyans tend to think before they speak.
3.6.1 Analysis:
Kenyans tend to speak gently. On top of that, they respect others’ opinions. So, it will not be
troublesome for Pathao to keep up with the Kenyans’ tone of communication.

3.7 Culture:
Bangladesh and Kenya have some similarities in culture, though they have some dissimilarities
as well. In terms of power distance, both Bangladesh and Kenya score around 80
(Hofstadeinside.com, 2020). This means, people are not treated equally in either of the countries.
Just like the Bangladeshis, Kenyans are collectivistic in nature. As a result Kenyans prioritize
group success as opposed to individual success.
Unlike Bangladesh, Kenya is a multilingual country. Their official language is Swahili and
English. Also, Kenya is not a homogeneous country, there are multiple races, religions, and
ethnic groups.

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Kenyan people love to celebrate their cultural festivals. Mombasa carnival festival, lake Turkana
festival, Lamu cultural festival, and international camel derby festival are some of the famous
festivals in Kenya.

3.7.1 Analysis
Bangladesh and Kenya have many similarities in terms of culture. Language is a vital aspect of
any culture; Kenya's one of the national languages is English, so for Pathao, it is advantageous in
terms of communication. Also, Kenya and Bangladesh have similarities in terms of collectivism,
family life, power distance, and norms. So, for Pathao, it will be easier to cope up with Kenyan
culture. Moreover, in Kenya, cultural festivals happen throughout the year, so Pathao would have
a great chance to maximize its profit during festival seasons. However, there are some
disadvantages as well. For example, Kenyan is a homogeneous country, so for Pathao,
understanding some aspects of Kenyan culture would be challenging.

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4.0 Market & Competition

4.1 Business environment in Kenya

Kenya is one of the fastest and growing economic zones in Africa. And in the last few years,
African countries are the most sought out market to invest. Kenya operates a liberal economy,
and for trade and business investment. It is the most secure environment for private companies.
Foreign currency is freely transferable in Kenya as they used money is the Kenya shilling ( KES)
( Alouch, 2017). Recently Kenya introduced a digital tax rate of 1.5%. Digital companies like the
ride-hailing platform uber need to pay this tax to the Kenya Government ( The staff, 2020).
And if we are talking about corruption and transparency, Kenya ranks 137 among 180 countries.
Bangladesh ranks 143 among 180 countries similar to kenya. And that is not a good sign. In
2020 Kenya will score 28 out of 100 in the global corruption index, below the worldwide
average. Kenya's public sector is more corrupt than the private sector. Their private sector is
transparent than their public sector (transparency international, 2020).
4.1.1 Analysis:
As Kenya operates a liberal economy for Pathao, it is a significant advantage for them to start
their business in Kenya. As we know, the liberal economy is the most secure for any business, so
it will help Pathao to grow its place in the Kenya market. And for the currency exchange, Pathao
will have a free, transferable advantage. But Pathao needs to keep their mind about their
corruption rate. Since Bangladesh and Kenya have close enough corruption rankings, it will be
easier for Pathao to plan accordingly.

4.2 Ride sharing industry Analysis

In Kenya, many ride-sharing companies operate their business. In Nairobi, Uber, Lyft, taxis,
Limon, Ola, didi operate their business. Many more taxi ride-sharing companies start their
startup every day on the success and coping uber model. From them, these are the Top five
reliable ride-sharing companies in Kenya, Uber, Little, Taxify, Mondo ride, Pewin Cabs
(lukhanyu, 2018). Uber has more than 3 lac active riders and more than five thousand active
drivers in Kenya; it is their no three choices. Little started their business two years ago in Kenya,

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and it comes up with some unique features to attract their customers, and there are no two
choices. And Taxify comes up with a shallow rate of 15% commission from its drivers, which is
lower than its competitors. And that's helped to grow their business in Kenya (lukhanyu, 2018).
Also, they have some excellent offers for their riders. That's why they are the top leading ride-
sharing company in Kenya. Mondo ride is the fourth choice for the Kenyan people. And the fifth
ride-sharing company is the Pewin cap, and they provide the safest ride-sharing service. They
owned locally and tried to focus on B2B business and local tours.
4.2.1 Analysis
There are a number of ride sharing companies, operating Kenya. This is, Undoubtedly, a
potential threat from pathao. If Pathao ends up expanding to Kenya, it will be challenging for the
company to stand out from its competitors.

4.3 Direct competitors

Their top leading ride-sharing companies are Taxify, Little, and Uber; they are the market leader
in Kenya. Among these three, Taxify is in the top position because they offer the minimum
charge among them. After Taxify, Little is Kenya's second most popular ride-sharing company,
which owns Kenya's giant mobile operator company Safaricom. They have many customer-
oriented features like they offer free wifi in every car, which leads them to no two positions. And
at the last Uber, they try to capture the market with their world-class service. Recently they offer
a minimum fare from $2.90 to come down $1.45 so that they can grab more customers with their
new pricing( Tamura, 2017).
4.3.1 Indirect competitors
Boda Boda is a bicycle or motorcycle taxi. It's common in local areas where taxis are hard to
find. There are also buses, metro shuttles, and private city hoppers available in Kenya. Matatu is
a transportation service that is popular among the local people. Also, there are shared taxis, tax,
Tuk-Tuk available in Kenya.
4.3.2 Analysis
As we see here, the Kenyan market is full of all types of transportation services. Every day new
transportation services start their venture here. For Pathao, they need to come up with some great
ideas to capture this busy market. As we see, Kenya's people are very price-sensitive, so Pathao

11
needs to focus their minimum fare in this market. Also, before entering into the market, they
need to start marketing in Kenya to show their new features and minimum fare so that they get
some exposure before entering into the market.

4.4 Tourism Market Overview

We know Kenya is a resource-poor developing country. Kenya mostly depends on its tourism
industry, and this tourism industry is a golden egg of Kenya's economy. In 2019 more than 2
million people will visit Kenya (M. Irandu, 2020). The US is the top source country in terms of
visitors in Kenya, followed by India, Italy, the UK, and Germany. And mostly, they use private
ride-sharing transportation services for their traveling in Kenya.
4.4.1 Analysis
As this tourism sector is a golden egg of the Kenya economy, Pathao has an excellent chance to
create new services for foreign visitors to capture this tourism market. In tourist spots, they have
to increase their ride and offer good service to attacked customers

4.5 Impact of COVID-19 in tourism market

During the Covid-19 pandemic, the tourism sector lost 50% revenue, which is roughly around
80 million USD. (xinhua, 2020).Unfortunately, during the first four months of COVID-19 there
was little to no tourist vehicle movement in Kenya. Almost all the transports were stuck.
However, recently, the tourism sector is getting back on its feet again, but it is operating on a
limited scale.
4.4.1 Analysis
Pathao needs to consider the impact of COVID-19 on the tourism sector. Due to the COVID-19
pandemic, the tourism sector is not as active as it used to be. As a result the probability of
gaining profit from the tourism market is very low.

4.6 Advertising strategy

In order to succeed in Kenya, Pathao needs to devise proper advertising strategies. Considering
the various aspects of Kenya some advertising strategies are presented below:

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 1. Digital marketing: People in Kenya are leaning more towards digital platforms with the
course of time. The youth are very active in social media. So, in order to grab the Kenyan
audience’s attention, Pathao can opt for digital marketing.
2. Celebrity endorsement: We have already cone to know that the Kenyan audience is
highly materialistic. As a result, they tend to prefer exclusive and trendy brands. Pathao
can use celebrity endorsement to attract the attention of the Kenyan market.
3. Discounts: In order to attract the customers at the initial stage, Pathao needs to provide
frequent discounts. Provided the fact that, there are a number of ride sharing companies
already operating in Kenya, it will be difficult for Pathao to grab the attention of the
customers as a new player in the market. So, it needs to give discounts on a regular basis
to attract the customers.

4.7 Organizational strategy

Since Pathao wants to expand its business to Kenya, it can adopt the following organizational
strategies:
 Acquire first-hand data on different aspects of Kenya that are relevant to Pathao’s
business.
 Conduct survey on the Kenyan people to have a deeper understanding of their mindset
and consumption pattern.
 Run a pilot test in Kenya in order to determine the level of feasibility.

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5.0 SWOT Analysis

5.1 SWOT matrix:

Strengths Weaknesses

● Well behaved people.

● Materialistic mindset of people. ● Corruption.
● English is one of the two widely ● High level of crime and terrorist activities.
spoken languages. ● High power distance.

● Bilateral trade agreement with ● Swahili is more prevalent than English.

Bangladesh
● Free trade system
● Stable political environment

Opportunities Threats

● Remote areas have access to 4G ● Level of uncertainty avoidance is

internet. comparatively high
● Rapid technological growth. ● Heavy rainfalls in central and western
regions
● Cultural festivals. ● Already existing competitors

● Tourism sector.

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5.1.1 Analysis:
In the above matrix, Kenya has been depicted in terms of its strengths, weaknesses,
opportunities, and threats. While Kenya has many weaknesses and threats, there are several
strengths and opportunities to counteract them. The SWOT matrix is broken down below:
Strengths: Kenya possesses some strengths which are very essential for international business.
For instance Kenya has a free trade system and a market based economy. Kenya is even more
lucrative for Bangladeshi investors as an international business venue since Bangladesh has a
bilateral trade agreement with Kenya. Political environment is an extremely significant factor in
international business. Foreign investors are usually not interested in countries with unstable
political environment. As Kenya has a very stable political environment, it is often referred to as
the "jewel of Africa”. On top of that, Kenyans are very gentle and friendly in nature. Also, most
o the Kenyans possess a materialistic mindset, which is a positive indication for any brand.
Weaknesses: Kenya has some significant weaknesses. For example Kenya is susceptible to
criminal activities and terrorism. No company would want to start a venture in a country where
crime and terrorism are major issues. Given the circumstances, it would be risky for Pathao to
expand to Kenya. However, renowned ride sharing services such as Uber and lyft are operating
in kenya. So, if Pathao wants to expand to Kenya, it can definitely find out a way to do so..
Opportunities: Kenya is filled with opportunities. The fact that remote villages of Kenya have
access to 4G internet, is a great opportunity for online based businesses. If Pathao expanded its
business to Kenya, it would surely want to cash in on this opportunity. Moreover, cultural
festivals happen throughout a calendar year in Africa, which is another opportunity ride sharing
companies would like to utilize to maximize profit.
Threats: There are a number of ride sharing companies already operating in Kenya, all of which
are direct competitors to Pathao. This is a major threat for Pataho. However, Pathao can
minimize this threat by its food delivery and parcel service.

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6.0 Conclusion
Criminal and terrorist activities often take place in Kenya. On top of that there are a number of
already existing ride sharing companies in Kenya. Nevertheless, there are some lucrative
opportunities
However, Kenya is one of the best countries in Africa in terms of economy and international
business. Having a market based economy, Kenya has one of the fastest growing economies in
Africa. Also, Kenya is miles ahead of other African countries in terms of technology. Another
positive aspect of Kenya is its stable political environment. As a matter of fact, Kenya's political
environment is one of the most stable among all the African countries. As Kenya has a bilateral
trade agreement with Bangladesh, it is a bonus for Bangladesh based companies. Furthermore,
remote villages have access to 4G internet, which is a lucrative opportunity for online-based
businesses.
From the above discussion, it is very much obvious that Kenya poses some major weaknesses
and threats. However, the strengths and opportunities outweigh the shortcomings to a great
extent. Considering all the aspects of Kenya, it would be suggested that Pathao can expand its
business to Kenya.

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