It is becoming more and more important for companies to internationalize in order to compete and to grow. Since many markets are almost saturated, companies are forced to seek and exploit new opportunities and these opportunities are often found in developing economies.

Developing countries have a great potential for future growth. However, they can be difficult to function in due to for example non-westernized business practices. For this reason, the mode of entry strategy has to be carefully evaluated and selected. This research covers the area of mode of entry strategies that would be used by a Finnish firm, YIT Group to enter a developing country, Kenya. The focus is on motives to enter developing countries, the strategies used to enter developing countries, the factors influencing the decision of entry strategy, and finally problems companies entering developing markets experience.

In order to reach this purpose, a case study of a Finnish company within the subject area, through an interview was conducted. The main findings are that the most significant motive to enter developing countries is potential growth of the market, the most suitable entry mode strategy is joint venture, the most significant factor influencing the entry mode decision is the legal framework, and the largest problem experienced by companies investing in the country is bureaucracy.