Strategic Marketing Review: National Oil Corporation Export

This report provides a comprehensive export strategy for the National Oil Corporation of Kenya, focusing on exporting oil to the Netherlands. It begins with an abstract outlining the key aspects of the strategy, including a PESTLE analysis of the Netherlands and an overview of Kenya's economic context and the National Oil Corporation's operations. The report delves into international trade theory, approaches used by firms, and logistics, covering transportation, documentation, and distribution. It highlights the importance of information technologies and ethical considerations in strategic decision-making. The report offers recommendations for market entry, including market research, relationship building, and establishing a trade framework, and concludes with an implementation plan, offering a step-by-step approach to launch the export operations. The report aims to assist the National Oil Corporation of Kenya in leveraging the bilateral trade agreement between Kenya and the Netherlands to expand its oil exports.

Running head: MARKETING 1
Strategic Marketing Review
Student Name
Institution

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Abstract
National Oil Corporation of Kenya needs to consider exporting oil Netherlands. This
export strategy provides an analysis of various business aspects that increases the feasibility of
exporting oil to the Netherlands. The paper provides an analysis of the destination country where
the company needs to export oil to giving the PESTLE analysis of the country. The paper also
provides an analysis of Kenya being a developing country within the continent of Africa.
Analyses of the national oil corporation of Kenya that include products it deals in and other
operational information. The paper provides various business strategies that are important for
market entry and operations. In addition, the paper also gives various logistics that include
transport logistics, documentation logistics, transaction logistics, and distribution logistics.
Another area of focus of this paper is international trade theory that is mainly free trade resulting
from the bilateral trade agreement between Kenya and the Netherlands. Moreover,
recommendations for implementation are market analysis, market relationship building within
the Netherlands, licensing, and working out the trade framework for business. The paper
concludes by giving various steps for the implementation of these recommendations to ensure
business fully begins the operations.
Table of Contents

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1. Recommendations...............................................................................................................................2
2. Background information......................................................................................................................3
2.1 Netherlands.......................................................................................................................................4
2.2 Kenya.................................................................................................................................................5
2.3 National Oil Corporation of Kenya.....................................................................................................5
3. Analysis of the export strategy............................................................................................................6
3.1 International trade theory.................................................................................................................6
3.2 Approaches used by firms.................................................................................................................7
3.3 Logistics.............................................................................................................................................7
3.4 Mode of transportation.....................................................................................................................7
3.5 Information technologies..................................................................................................................8
3.6 Incorporating ethical issues in strategic decision-making..................................................................8
3.7 Accessing market opportunities........................................................................................................9
3.7.1 Entry strategy.............................................................................................................................9
4. Recommendations for National Oil Corporation of Kenya.................................................................10
5. Implementation plan.........................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................11
1. Recommendations
National Oil Corporation of Kenya can start exporting oil and oil products to the
Netherlands to enjoy the free trade agreement between Kenya and the Netherlands. The company

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can start trading by conducting market research on various oil market factors such as prices. The
company can then do the certification of business in the Netherlands to ensure that there is no
problem when trading. The company than through the team of experts come up with trading
relationships with various players within the oil sector of the Netherlands. The company will
come up with a trade framework that will provide the scope of operations within the international
trade and this also includes logistics. Lastly, the company will start pilot trade that will start by
exporting the oil and oil product to the Netherlands and companies in the market.
2. Background information
Oil trade remains an important commodity within international trade and any company
capable of trading in oil stands a chance of growth. National Oil Corporation of Kenya needs to
trade with the Netherlands on oil due to the opportunity that currently exists in the market. There
is a trade opportunity that exists between Kenya and the Netherlands that is created by the
signing of bilateral trade between the two countries. Besides, crude oil and refined oil are the two
highly ranked imports of Netherlands that present opportunity for investment (Christopher,
2010).
Kenya and Netherlands are key players within the world trade organization. The two
countries are members of the world trade organization and this has ensured that there is smooth
trade between the two counties. Firstly, the Netherlands has various WTO rules that control trade
among member nations. The country has been involved in trade resolution regarding various
countries within the European Union. Secondly, Kenya has also been a key member of WTO and
this has enabled the country to host various WTO conferences within the country. This has
increased participation in trade between Kenya and other countries. Kenya has various trade

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documents that enable the country to manage various international trades on commodities
(Daniels, Radebaugh & Sullivan, 2018).
2.1 Netherlands
The Netherlands is a major European country that exports oil products from many
different countries. Oil or petroleum product is the country number one export making the
country one of the potential destinations for export from Kenya being a developing country in
Africa. The Netherlands is Crude Petroleum ($36.4B) and Refined Petroleum ($33.1B). The
country export oil from Russia which is one of the top exporters of oil. The country has been in
trade with Kenya for a long period especially on agricultural products. The country also
important other products from another country though oil and petroleum products are the leading
import within the country (Henry, 2011).
The PESTLE analysis of the county of the country's business environment shows various
factors that affect the business within the country. Firstly, the political factors show that the
country is politically stable and the country has enjoyed this for trading purposes. Secondly,
economically the country has a large economy that includes a large number of imports and
exports yielding the country a good balance of trade. Thirdly, social-cultural factors include
national language that represents an important cultural environment affecting the business.
Fourthly, technologically the country has been at the forefront of implementing various
technologies in conducting the business. Legally, the country has legal business regulation that is
shaped by EU regulations. Lastly, ecologically the county has a high focus on environment and
environmental protection (Henisz & Zelner, 2010).

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2.2 Kenya
Kenya is a developing country that exports various products to Europe and other
countries. The country has been exporting products that are mostly agricultural and the
Netherlands is a major trading partner with Kenya. Kenya has been exporting agricultural
products that are mostly vegetables and flowers to the Netherlands and this has increased access
to trade between the two countries. The Netherlands, on the other hand, has been exporting
machinery to Kenya, a trading partner that continues to increase ties between the two countries.
The country has been producing crude oil and natural gas which also started to export to other
countries within Asia. The oil export has to increase Kenya's trade within the international
platform given that the country has already been trading with countries such as the Netherlands
on other products (Raue & Wieland, 2015).
2.3 National Oil Corporation of Kenya
National Oil Corporation of Kenya has been a state-own corporation that major in
upstream oil services and also trading of oil products. The company has also been at the forefront
together with Tallow oil in the marketing of the Kenyan oil product to other countries. The
company is involved in oil business throughout the value chain of the oil and oil products. The
company is involved in upstream, gas exploration, downstream oil marketing, and development
and midstream oil infrastructure development. Besides, the company is part of the marketing
team that plays a role in the marketing of crude oil internationally. This enables the company
team up with tallow oil which has been involved in the exploration of the oil in Kenya to market
oil outside the country. The national oil corporation of Kenya deals in various petroleum
products and crude oil both within the country and internationally. The company states own
corporation that monitors and engages in the oil business. The company has been a task to

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manage various marketing and trade that concerns petroleum. The company has also been
enjoying state support in the provision of various state gas projects that aims to improve gas
usage in the country (Mallik, 2010).
The company is also mandated to carry out various international oil marketing services
on behalf of the country and can take advantage of the trade agreement between Kenya and the
Netherlands. The company needs to export the oil commodity because there is a need to take
advantage of the trade that exists between Kenya and the Netherlands. The company is therefore
in a good position to use state relationships with other countries such as the Netherlands to enter
the Netherlands market. Oil is the main product that traded being a major commodity within the
international market.
3. Analysis of the export strategy
3.1 International trade theory
The international trade theory explains the exchange within the international trade
platform. The theory gives various exchange systems that exist at the multinational company and
the country level. An example theory that forms the core to the international trade theory is the
firm based theory or country-based theory. The international trade theory proves various theories
and models used for international trade. One of the theories that are useful for this export
strategy is the firm based theory or country-based theory. One of the key aspects of the
international theory between Kenya and the Netherlands is the bilateral free trade agreement will
enable trade between national oil corporations of Kenya. Also, there are few trade tariffs only the
standardization requirement form the main issues within this trade (Luthans & Doh, 2015).

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3.2 Approaches used by firms
There are many different approaches that firms use to conduct trans-border trade without
challenges of instruments of trade protection. Firstly, firms may take advantage of the country
trading relationship as this forms a key strategy for bypassing various trade conditions. Secondly,
firms use a licensing strategy to adhere to the requirement within the international market.
Lastly, firms also use partnerships or relationships within the host country to facilitate trade with
the company’s parent organization especially the multinational corporations (Heizer & Render,
2011).
3.3 Logistics
International logistics come into play when dealing with the transportation of oil from
Kenya to the Netherlands. Some of the international logistics facilitate the movement of
commodities across the international platform. Firstly, documentation logistics is the
international logistics that enable documentation of various processes within the international
level. Secondly, transactional logistics facilitate buying, selling and any other transaction within
the international platform. Thirdly, the distribution logistics channel includes various activities
that enable the movement of oil commodities from Kenya to the Netherlands (Freeman, 2010).
3.4 Mode of transportation
The mode of transportation that is used for transportation is marine vessels that are
normally cheap for transportation. Marine vessels will be used since they could carry a lot of fuel
making the mode of transport cheap as compared to other modes of transport. Marine bound fuel
tankers are used to transport crude oil from the African continent to Europe (Green & Jackson
2015).

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3.5 Information technologies
There are many different information technologies used in international trade. Firstly,
information technology is used to facilitate communication especially the internet that has
increased global communication. Communications within the global space have been increased
through the use of the internet and other communication strategies. Secondly, the electronic
payment system is another international mode of transport that enables an improved payment
system. The electronic payment system facilitates international payment and there has been
enabled through various payment methods. Thirdly, information technologies such as sensors are
used to track transport systems. When transporting commodities across the world, information
technology especially the GPRS is used to track and monitor these vessels up sea (Donald, David
& Bixby, 2012).
3.6 Incorporating ethical issues in strategic decision-making
Incorporating ethical issues in strategic decision making requires understanding the
ethical issues affects the international market. These ethical issues are standards, environmental
protection, bribery and corruption, and working condition form employees. Firstly, international
trade requires observation of various international standards that the production of quality oil
products for the market. The standards are a key aspect that is highly regarded within the
European market and should be given attention (Tamer, Gary & Riesenberger 2011). Secondly,
environmental issues are another key aspect of international business ethical issues that require
high observance as this ensures limited pollution. The Netherlands and other European countries
are sensitive to environmental protection as much attention are given to protecting the
environment against pollution. Thirdly, corruption has been an issue affecting Kenya for a long
time and this could affect the transportation of oil to the Netherlands. Oil trade between the

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National Oil Corporation of Kenya and the Netherlands may encounter bribery and corruption
that affects the ethical operations within the market. Lastly, the working condition for both
employees and the transportation system requires fairness without any challenge. International
working conditions standards should be given to those involved in the trade to ensure that there
is continuous trade (Buckley, 2010).
3.7 Accessing market opportunities
3.7.1 Entry strategy
There are some market entry strategies that the company can use to enter the Netherlands
market. Firstly, the company may use direct entry into the county where the company will sell
directly to the country oil-importing corporation. Secondly, the company may also partner with
another company within the country to improve its marketing strategies within the country.
Thirdly, the company may also conduct market analysis to evaluate various market factors that
enable marketing and selling of products within the country (Hill, 2014).
National Oil Corporation of Kenya has the market opportunity in the Netherlands given
that the country is a good trading partner of Kenya and is one of the larger oil imported. Kenya
signed a bilateral trade agreement with the Netherlands that enables free access to trade between
two countries. Bilateral trade enables the reduction of or eliminates tariffs, import quotas, export
restraints, and other trade barriers to encourage trade and investment. The bilateral trade
agreement between Kenya and Netherlands enables the exchange of many different goods
(Poluha 2016).

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4. Recommendations for National Oil Corporation of Kenya
In light of various analysis, there are some recommendations that the company can
implement to invest in the business opportunity. Firstly the company needs to conduct market
research and analysis of the market parameters as this will ensure effective trading in oil. The
company needs to conduct market research that will ensure that the company understands the
international oil market and this could be done through oil market experts. Secondly, the
company needs to develop a business relationship with various oil companies and players within
the destination country. Developing business relationships with various business and oil market
players to bits of help understand the domestic market within the Netherlands. Thirdly, the
company can form a partnership with various international players that are already in the oil
industry to ensure that the cost of trade in not higher than the profit that will be gained from
trade. Lastly, the company should invest in the trade as this will enable growth and accumulation
of wealth within the international scale (Krajewski, Ritzman & Malhorta, 2013).
5. Implementation plan
The implementation plan for various recommendations requires some steps that need to
be followed to ensure effective business operations. Firstly, the company can form a team of
international oil experts that research prices, competitors and business culture that control oil
trade within the Netherlands and regionally. Secondly, the company through experts will come
up with a trading framework that incorporates various marketing and selling strategies to help in
trade. Thirdly, the company will start forming relationships with companies within the
international oil market, especially within the Netherlands to facilitate effective trade. These
relationships could be alliances and partnerships with various organizations and institutions. This

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will also help in licensing business operations within the Netherlands that are important for
regulations. Fourthly, the company seeks licensing and certification from the agencies regulating
oil trade in the Netherlands. Getting clearance from various international bodies that are
concerned with international logistics will be the next certification. Lastly, pilot trade with those
companies that are willing to trade with the national oil corporation of Kenya.
Conclusion
In conclusion, the national oil corporation of Kenya should consider exporting oil to the
Netherlands owing to the already build trade relationship between Kenya and the Netherlands.
The company should implement the recommended strategies that also provide an analysis of the
export strategy. The company should include various marketing strategies that will enable the
performance within the international trade with more focus on international trade theory.
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