CORPORATE SURVIVAL AND GROWTH STRATEGIES IN A COMPETITIVE BUSINESS ENVIRONMENT

ABSTRACT

Competition has become the norm of the day in modern economy. The world has become a global village, with modern technology and sophistication business competition has blossom in our present age. Modern business organization does not only compete with local industries but also foreign industries. While on one hand, it has given room to increase varieties of goods available to consumers and improved quality of the products, on the other hand, strive competition has led to the failure of many business enterprises.  Thus, business survival and growth in the midst of competition has become the pivot goal at the management of every organisation. Necessary information we obtained through structured questionnaire administered on the direct clients and advertising agents of the company.  A special questionnaire was also designed for Karrington staff.  The survey involved 55 clients and staff.  The corporate survival and growth strategies of the company and their limiting factors were identified.  The result indicates that the growth of the company can be hinged on the quality control and modern technology.  This has given the company a competitive edge over its competitors.  This had also helped the company to secure customers loyalty over a long period of time.

TABLE OF CONTENTS

Title page: =       =       =       =       =       =       =       =       =       i

Certification:       =       =       =       =       =       =       =       =       ii

Dedication:         =       =       =       =       =       =       =       =       =       iii

Acknowledgement:      =       =       =       =       =       =       =       iv

Abstract:              =       =       =       =       =       =       =       =       v

Table content:    =       =       =       =       =       =       =       =       vi

CHAPTER ONE:         INTRODUCTION

1.1    Background of the study:     =       =       =       =       =       1

1.2    Statement of the Problem:            =       =       =       =       5

1.3    Objective of the Study:         =       =       =       =       =       =       7

1.4    Research Question:              =       =       =       =       =       8

1.5    Hypothesis of the Study:      =       =       =       =       =       9

1.6    Scope of the Research:                 =       =       =       =       10

1.7    Significance of the Study:    =       =       =       =       =       10

1.8    Plan of the Study:                 =       =       =       =       =       11    

          References:                 =       =       =       =       =       =       13

CHAPTER TWO:  LITERATURE REVIEW:

2.1    Introduction:                 =       =       =       =       =       =       14

2.2    The Criticality of Strategic Management:        =       =       =       15

2.3    Strategy Development and Implementation:  =       =       19

2.4    Approach to Formulating Corporate Competitive Strategy:       23

2.5    Types of Market Competition:       =       =       =       =       26

2.6    Method of Measurement of Market        Competitive: =   =       28

2.7    Profitable and Sustainable Growth Strategies

in a Competitive Market:                =       =       =       =       28

2.8    The Survival Strategies Option in a Competitive Market: 40

          References:                 =       =       =       =       =       =       43

CHAPTER THREE:  RESEARCH METHODOLOGY

3.1    Research Design:       =       =       =       =       =       =       45

3.2    Population:         =       =       =       =       =       =       =       =       45

3.3    Sample Size Determination: =       =       =       =       =       45

3.4    Sampling Techniques:         =       =       =       =       =       =       46

3.5    The Study Area: =       =       =       =       =       =       =       46

3.6    Nature and Sources of Data:        =       =       =       =       =       48

3.7    Techniques of Data Analysis                  =       =       =       =       49

3.8    Instrument for Data Collection:      =       =       =       =       49

3.9    Reliability of the Instrument: =       =       =       =       =       50

3.10  Validity of the Instrument:     =       =       =       =       =       50

CHAPTER FOUR:  EMPIRICAL ANALYSIS OF DATA

4.1    Presentation and Interpretation of Data:         =       =       =       51

4.2    Analysis of Responses:       =       =       =       =       =       51

4.3    Testing of Hypothesis:         =       =       =       =       =       =       56

CHAPTER FIVE:         SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION

5.1 Summary of Findings:             =       =       =       =       =       68

5.2  Recommendation:         =       =       =       =       =       =       =       71

5.3  Conclusion:           =       =       =       =       =       =       =       72

       Bibliography:         =       =       =       =       =       =       =       =       73

       Appendix:    =       =       =       =       =       =       =       =       75

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

       Business firms operate in a society to satisfy individual and social needs through the production of goods and services.  Their decisions influence and are influenced by what is happening in the society.  The social economic and political institutions that make up a society constitute in a broad sense the environment of business enterprises and the way they work, affects the operations and fortunes of every business unit.

       The motivating factor for the entrepreneur to go or venture into businesses is to make profit.  The objective of a business firm however goes beyond profitability only; it includes growth in size, increase in market share, innovation and social objectives. The realization of these objectives will be determined largely by the happenings in the environment. Specifically, the environment of a business comprises those activities that can hinder or facilitate the achievement of its objectives.  They include population, technology, social infrastructure, economic system and competitors.  Our focus in this study therefore is on the impact of the activities of the competitors on a business firm. Customers have a choice to go elsewhere if a particular firm’s products or services do not meet their needs.  They can go to the competitor who may claim they can do better or better still who satisfies their needs. This means that the activities of competitor in the same industrial sector as a company also affect a firm’s prospects and operations.  The type and quality of products that competitor offer, the price they charge for their products or services, their sizes locations, reputation, distribution channels and usual stock level maintained, are some of the things about competitors which shape the operations of a business. No business firm can ignore the actions and decisions of its competitors in a modern economy characterized by competitions.

       Fierce Business Competition in Modern Economy: 

We operate an open market economy where competitions thrive.  Increased competition is being driven by many factors, including the emergences of a global market place, the increase number of firms, new technology that makes it easier for firms to enter new markets and ever-increasing pressure from securities market to raise shareholder value.  In particular the frenetic atmosphere of mergers and acquisitions, coupled with the increased number of large institutional investors, has meant that firms that do not cut costs and improve financial performance face swift action in equity markets.  This competition has meant that companies are less able to insulate workers or invest in public goods such as research or employee training.  For instance, in U.S.A in 1992, three fourth of 531 corporations surveyed identified economic pressure firm competitors as one of the primary factor motivating their restructuring efforts (Nation Policy Association, 1997). In 1965 IBM faced 2,500 competitors for all its markets.  By 1992, it faced 50,000. And IBM is not alone in feeling outside pressure. While industries that were sheltered from significant competition such as telecommunication now faced growing competition, for  instance NITEL now have an array of competitors in Nigeria Telecommunication Market such MTN, ZAIN, GLOBACOM, STAR-COMM, VODAPHONE etc.  Stable industries have become dynamic. For example insurance was once a stale industry in Nigeria with a distribution system of local insurance agents, now its undergoing significant change, with competition emerging from foreign companies, banks selling insurance etc.

       Adesina (2003) notes that competition ensures that we change our ways of doing things.  It ensures that we raise our quality bar to international standard. Again, it can also be said that fairs and equitable competition helps achieve appropriate pricing level.

       As a result of fierce business competition in the market, the number of firms being born and dying every year has grown.  As less innovative and efficient companies die or contracts more innovation, efficient companies take their place. While firms can grow fast, they can go out of business or downsize just as quickly.

       Moreover, fierce business competition has meant that companies are constantly developing new products and services in order to gain new market, consumers’ benefits because their needs are more specifically addressed and met.

       Advertising and sales promotion play major role in competition in Nigeria, it can determine the fortune of any company. A company that fails to advertise will remain in obscurity and find it difficult to grow and expand.  This account for the reason why many multinationals will as indigenous companies which are regarded as market leaders such as Coca-cola, Guinness (Nig) Plc, Nigerian Breweries Plc, Nigeria Bottling Company Plc, MTN Communications, West African Milk Company Plc, First Bank of Nigeria Plc, etc., budget millions of naira annually on advertising and sales promotion, many advertising companies and agencies have spring up recently in Nigeria to meet the challenges in the Market.  This has also brought competition to advertising industry itself. 

       Researching therefore into the strategies adopted by the lending advertising companies in Nigeria to survive and grow is crucial considering the strategic roles played by advertising and sales promotion in the survival of any company in modern economy.     

 STATEMENT OF THE PROBLEM