Introduction This chapter presents the data analysis techniques and presentation as well as interpretation of the same.

Data presentation was done through pie charts and simple bar graphs as well as tables. Table 4.1Number of Years as an exporter

Frequency Below 3 Years 7-9 Year Over 10 Years Total Source Author (2012) Valid 1 5 6 12

Percent 8.3 41.7 50.0 100.0

Number of Years as an exporter

7 6 5 4 3 2 1 0 Below 3 Years 7-9 Year Over 10 Years

Frequency

Number of Years as an exporter

The study sought to determine the period in terms of years tea exporters have been into the business the study reveals that 50% of respondents have been into the export business for over ten years while 42% of respondents have been into the export business for between 7-9 years while the rest 8% have been into the business for less than three years. Therefore this study depicts that majority of respondents have been into the export business for more than ten years.
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Table 4.2Route through which you buy your tea

Frequency Valid Auction system Auction & Direct contract from multinationals Total 6 6 12

Percent 50.0 50.0 100.0

Route through which you buy your tea

Auction system Auction & Direct con

The researcher sought to determine the route through which tea exporters buy their tea 50% indicated that they purchased their Tea through the auction system while 50% used both Auction system and direct contracting from multinational companies. This shows that majority of respondents prefer direct auction system over direct contracting from multinationals, however half of the respondents use the two modes to buy their tea. Key Market Segment
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Key market Segment

120

100

80

60

40

Percent

20 0 International

Key market Segment

The study sought to establish the key market segments from the respondents, this study found that majority of the respondents key market segments is the international market with non of the respondents mentioning any other key target market apart from international markets.

Volume of Trade in year 2006

From the above pie chart the volume of trade traded most was between 0-9999, 10000-19999, and 20000-29999 Kilos of tea (metric tons) at 25% while 17% was 30000-3999 metric tons with the least percentage of 8% were above 50000 tons.

Volume of Trade in year 2007

In the year 2007 it was found that the highest volume of trade was between 20000-29999 metric tons at 59% while the least were over 50000, 0-9999 and 10000-19999 at 8% with the least category 30000-39999 tons of trade. Volume of Trade in year 2008

From the above pie chart the highest volume of trade was traded at 20000-29999 tons, 3000039999 tons, and 40000-49999 tons with 25% of respondents indicating that this was the most
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traded volumes. The least traded volume was 0-9999 tons over 50000 tons with 8% response while 10000-19999 tons stood at 9%. This shows that the volume of trade was moderate throughout the six year period. Volume of Trade in year 2009

In the above pie chart the most traded volume was 20000-29999 metric tons followed by the 40000-49999 metric tons and above 50000 tons all at 25% while the least traded was 0-9999 metric tons at 8%. This indicates that the volume of trade was high over the six year period compared to ealier year of Volume of Trade between 2010

Volume of Trade in year 2011

From the above chart the volume of trade was highest at 50000 metric tons and above with 42% of respondents affirming to this while 25% was 10000-2000 at 20000-29999 metric tons.

Information Flow

Flow of Information
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Frequency

0 Very Good Good Fair Poor

Flow of Information

The study sought to establish the flow of information between the tea exporters majority of respondents were of the opinion that it is fair at 58% while 25% said that it is good, 8% said that it is poor while the rest 8% indicated that its good. From this study it can be depicted that the flow of information between tea exporters is fairly good however there is need to improve this trend in order to enhance accountability.

Current structure of supply chain in the Tea industry

The study sought to determine the current structure of supply chain in the Tea industry majority of respondents at 92% indicated that the current structure is liberalized while the rest at 8% indicated that the market in unliberalized. This reveals that trade liberalization has tremendous increased especially in this sector thus resulting to more cross boarder trading. Kenya's tea industry benefited from COMESA Frequency 9 3 12 Percent 75.0 25.0 100.0

Yes No Total

Has Kenya's tea industry benefited from COMESA

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Frequency

0 Yes No

Has Kenya's tea industry benefited from COMESA

The study sought to determine whether players in the tea industry have benefited from COMESA the results shows that majority of the respondents agreed that COMESA has benefited players in the tea industry with 75% of the respondents affirming that there is great benefit for being part of COMESA while the rest 25% did not agree to this. The study sought to determine any barriers encountered in tea exports a number of barriers were highlighted including certification barriers, economic sanctions and piracy in high seas Punitive government taxes, competition and inefficiency at the port, regulatory requirements & trade sanctions.

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Descriptive Statistics Firm Structure, strategy and rivalry N Importance of Company mission and vision statement Importance of Defined organization structure Importance of Competition from other global tea traders Importance of Competition between tea exporters Importance of Documented company policies 12 12 12 12 12 Mean 1.6667 1.9167 1.5833 2.0000 1.9167 Std. Deviation .65134 .79296 .66856 .95346 .79296

On the Level of Importance in terms of Firm Structure, strategy and rivalry the above table shows that Competition from other global tea traders was regarded to have the highest importance compared to other factors with a mean of 1.58 while of Competition between tea exporters had the least importance with a mean of 2 depicting a lesser importance.

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Factor conditions N Qualified tea tasters, auction buyers Capital resources - Financing availability Road network (infrastructure) Adequate warehousing facilities Regulatory & administrative infrastructure such as Tea Board of Kenya influence Information infrastructure Technological and innovative solutions such as from Tea Research Foundation 12 12 12 12 Mean 1.2500 1.4167 2.2500 1.8333 Std. Deviation .45227 .66856 .86603 .57735

12 12 12

2.0833 1.8333 2.4167

1.08362 .93744 1.08362

The above table depicts that Capital resources - Financing availability was regarded with very high importance over the other Factor conditions while Technological and innovative solutions such as Tea Research Foundation were considered by respondents to be less important with a mean of 2.4. Demand conditions N Demand from local customers Demand from international customers 12 12 Mean 4.0833 1.3333 Std. Deviation 1.31137 .49237

Under Demand conditions, Demand from local customers had the lowest score with a mean of 1.33 indicating a high level of importance while Demand from international customers had the highest score with a mean score of 4.08 indicating low rate of importance.

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Related and Supporting industries N Banks and banking networks Access of capable, locally based suppliers Joint participation of promotion at local and international exhibitions Membership associations (EATTA) Transporters Transporters Kenya Revenue Authority Tea Brokers KPA and Shipping lines 12 12 12 12 12 12 12 12 Mean 1.6667 2.2500 2.8333 2.2500 2.5000 2.0833 1.9167 1.5000 Std. Deviation .65134 .86603 1.11464 .86603 1.00000 1.16450 .66856 .67420

From the above table KPA and Shipping lines was regarded to be highly important compared to other factors which are also important while Joint participation of promotion at local and international exhibitions Membership associations (EATTA) Transporters is the least in terms of level of importance with a mean score of 2.83.

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CHAPTER FIVE SUMMA RY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 5.1 Introduction This chapter is a summary of the study conclusions and recommendations on the application of porters theory of the competitive advantage of nations in determination of the competitiveness of the Kenyan tea export industry. 5.2 Summary of Findings This study found that majority of respondents 50% have been into the export business for over ten years while 42% of respondents have been into the export business for between 7-9 years while the rest 8% have been into the business for less than three years. On the question to determine the route through which tea exporters buy their tea 50% indicated that they purchased their Tea through the auction system while 50% used both Auction system and direct contracting from multinational companies. It was found that majority of the respondents key market segments is the international market with non of the respondents mentioning any other key target market apart from international markets. On whether markets are integrating due to globalization and the benefits arising as a result a number of benefits were highlighted by the respondents including a better understanding of customer requirements, easy flow of information from all over the world, opportunities for venturing into new markets while others indicated that there was increased competition as a result of integrating. This study found that Kenyas tea industry has benefited from COMESA through tariff exemptions to member countries, free movement of goods among COMESA members, tax advantages as well as improved trade activities among member countries.

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This study found out that key barrier encountered in tea exports include certification barriers, economic sanctions and piracy in high seas punitive government taxes, competition and inefficiency at the port, regulatory requirements & trade sanctions. 5.3 Conclusions There has been an increase in the volume of trade transacted in the country over the past ten years leading to increase in revenues from tea sales. However the government through the relevant ministry should seek to increase tea output as well as create new markets for the new output in order to benefit all players in the industry. 5.4 Recommendations Players in the tea industry should seek strategies to boost tea revenues as this will act as a motivation to tea farmers thus resulting to more output. Tea has been a key source of revenue for the country therefore more output will lead to increase in tea revenues which will be replicated in the gross domestic product. 5.5 Suggestions for Further Research From generalization of the results point of view, measuring research questions based on the opinion of the respondents would limit the generalization of the findings. Despite the above limitations, this research has provided useful results in paving the way for future research in this area. Future research should focus on strategies that could be employed by industry players to ensure a steady and or increase in tea output in the country this will enable players to earn more revenues. Additionally future research should also look into new markets that will ensure the industry secures adequate markets for the product.

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