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Title: The effects of imports on the performance of domestic companies in Tanzania: a case study of Tangacement Company
Authors: Mwanyamba, Isaya R.
Keywords: Performance of domestic companies
Tangacement Company
Issue Date: Jun-2009
Publisher: Kampala International University; College of Economics and management
Abstract: This research work has been carried to investigate the effects of imports on the performance of domestic companies in Tanzania; this was the main objective, the research used cement industry and Tanga Cement Company as the case study. Other objectives were to establish how domestic companies can deal with the problems associated with imports, to determine the reasons for failure of domestic companies and to establish the role of the government as a promoter of business. Many regions of the country are affected by imports but Zanzibar market is highly affected, many cement shops there have imported cement but very few or no domestic cement, and many people in Zanzibar do not care about quality of the products, they believe the quality of all cements is the same. 80% or more of Zanzibar cement market is served by imports. The research revealed that domestic cement is still perceived as of better quality compared to imported cement, but many people do not know the difference in quality of domestic and imported cement. Imports increased in the country in 2007/08 because in the year 2007/08 the government decided to allow importation of cement to solve the problem of shortage, this led to fall in sales volume of our domestic companies. Prices of domestic brands of cements are burdensome to consumers and in every region people said domestic cement is very expansive. Imported cement is sold at cheaper price almost in every region. Also domestic cements differ in prices in some places and the most expensive brand is Simba cement. Large number of imported cement is from Pakistan and India. Imports have increased because of increasing new capacities in the world especially in countries like China, India and Pakistan which are low cost location where the governments offer subsidies to cement producers. High costs of electricity, poor infrastructure, and unstable power supply are among the reasons for failure of domestic companies. The government should stop allowing importation of cement because in this time the cement is more available and there are so many upcoming new cement investments in the country. The government must establish favorable conditions for enabling our companies to export because there will be more cement surplus in the near future. Domestic cement companies have to establish competitive strategies to rescue their market share especially in Zanzibar.
Description: A research report submitted to the School of Business and Management as the partial fulfillment for the Award of Bachelor of International Business Administration of Kampala International University
Appears in Collections:Bachelor’s Degree of International Business

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