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Article

Open Access

Competition in Marketing: Survival Yardstick for Small and Medium Enterprises (SMEs) in Nigeria

Author(s)

Olanrewaju Samson Ibidunni, Ogundeji J. K. Ogundele

Full-Text PDF Download XML 506 Views

DOI:10.17265/1537-1506/2013.11.005

Affiliation(s)

Olanrewaju Samson Ibidunni, Ph.D., Department of Business Management, Covenant University.
Ogundeji J. K. Ogundele, Ph.D., Department of Business Administration and Management Technology, Lagos State University.

ABSTRACT

The topic investigated competition in marketing as a survival yardstick for small and medium enterprises (SMEs) in Nigeria. The objectives addressed by this study were: (1) identifying different types and intensity of competition that SMEs are exposed to along the life-cycle portfolio in Nigeria; (2) quantifying the strength of SMEs vis-à-vis some foreign enterprises in terms of market competition; and (3) proffering solutions on how best they could match competitively these foreign enterprises. Relevant models and theories were employed in literature to evolve detailed analysis of issues relating to the variables used in terms of competition in marketing and survival of juice-producing SMEs. Two hypotheses were investigated through the survey of 20 prominent Ikeja based SMEs using Cluster sampling, 5-points Likert summated rating scale was adopted, while Yard’s formula with 95% confidence level and 5% error tolerance was used. Alternative form validity of the instrument was measured at 0.63 while its reliability was measured at Cronbach’s alpha of 0.70. Pearson’s product-moment correlation was used in testing hypothesis 1 while standard multiple regressions were used to test hypothesis 2. Findings revealed that there was strong relationship between survival of juice-producing SMEs with forms of competition on a firm’s life-cycle; while competition had positive effects on survival components for the enterprises. It was concluded that since competition subsists in any firm’s life-cycle, strategies to support operations for survival must be adopted. It was recommended that operators of SMEs have to monitor and manage competition as it affects their businesses positively and/or negatively.

KEYWORDS

competition, firms’ life-cycle, survival of enterprises, strategies to support operations, operators of small and medium enterprises (SMEs), monitor and manage competition

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