COMPETITIVE STRATEGIES AND PERFORMANCE OF FOOD, BEVERAGES AND TOBACCO MANUFACTURING FIRMS IN SOUTH EAST, NIGERIA

Abstract

The study evaluated competitive strategies and performance of food, beverages and tobacco manufacturing firms in South East, Nigeria. The specific objectives were to: determine the effect of cost leadership strategy on profit and evaluate the effect of product differentiation strategy on return on assets of food, beverages and tobacco manufacturing firms in South East, Nigeria. Two research questions were formulated based on the objectives of the study while corresponding hypotheses were stated and tested in the study. The design of the study was descriptive survey design. The area of the study was food, beverages and tobacco manufacturing firms in South East, Nigeria. The population of the study was four thousand, nine hundred and eighteen (4,918) employees. The sample size of three hundred and sixty (360) respondents was drawn from the population using Freund and William’s statistic formula at 5 percent error margin. Instrument used for data collection was the questionnaire in a five point rating scale made up of two sections containing 30 items. Three hundred and two (302) copies of questionnaire were returned. Z-test was used to test the null hypotheses with the aid of statistical package for social Sciences (SPSS). The findings indicated that cost leadership strategy had significant positive effect on profit (Z(95, n = 302) 7.337 < 8.833, P < 0.05) and product differentiation strategy had significant positive effect on return on assets (Z(95,n=302) 6.761 < 8.085, P < 0.05) of food, beverages and tobacco manufacturing firms in South East, Nigeria. The study concluded that cost leadership strategy and product differentiation strategy and had significant positive effect on profit and return on assets of food, beverages and tobacco manufacturing firms in South East, Nigeria. The study recommended among others that the management of food, beverages and tobacco manufacturing firms should improve on cost leadership strategy by lowering price of products, and brand items, cut costs during operations and increase distribution channels