The aim of this study is to analyse the international competitiveness of domestic firms based in developing countries, particularly in Africa; wherein market imperfections and local knowledge are used to develop a sustainable competitive advantage against rivalry. The dissertation utilises the work done by the Boston Consulting Group (BCG) as secondary research. This study is important as it continues to update and enrich the international business literature, which is underdeveloped to describe African Mul tinational Companies (MNCs). The research method approached in this dissertation is a qualitative single case study embedded using two different units: South Africa’s Standard Bank and Togo’s Ecobank; in the random systematic review. The findings from this research will demonstrate with evidence that in a difficult and chaotic environment difficult, deregulated and instable.
Domestic firms in Africa develop their own structure by linking their ancestral knowledge and culture to adapt and to develop attractive strategies. In this narrow market in term of scale economies, those strategies are mostly customers’ oriented enabling geographical expansion. This is done, firstly within their region of integration as a test, to lower risks of internationalisation. Then, by developing different canal of ventures to reach the international scene to attack further and new markets. This study argues for more integration, harmonisation of regulations within different regions, standardisation at the international level and transparency of norms and practices for a better exposition and attractiveness of the African market place.
Keywords :
Africa, Competitive advantage, Developing countries, Domestic firms, Domestic Competition, Financial Services, Firm’s capabilities, Foreign firms, Growth,
Internationalisation, Knowledge, Resources.