A STUDY OF THE IMPACTS OF NEW PRODUCTS STRATEGIES ON THE GROWTH OF FIRMS IN NIGERIA

A STUDY OF THE IMPACTS OF NEW PRODUCTS STRATEGIES ON THE GROWTH OF FIRMS IN NIGERIA

 (A case study of Konga Retail Company, Abuja)

ABSTRACT

This research work is executed to evaluate the impacts of new product strategies on the growth of firms in Nigeria. In other to develop and market new product; correct approach must be used to ensure that new product does not fail in the market, thereby making a new productto go through proper planning,implementation and control. The method of investigation applied was sample survey; the study was executed by using statement of problems from which the research question and hypothesis of the research were formulated. Secondary source of data were collected from related books, journals, newspaper, archival records. The data gathered were segmented according to the problems then analyzed using chi-square test.

CHAPTER ONE: INTRODUCTION

1.0   BACKGROUND OF THE STUDY

Many organizations today are focusing on becoming more competitive by launching strategies that give them an edge over others. Sugar companies are equally facing the same challenge in their choice of strategy given the crisis the subsector is currently experiencing. The challenge of liberalization, increasing competition from cheap sugar imports, poor industry policies and structures in sugar industry forms the basis of this study Institute of Economic affairs (2005). It is worth noting that a major part of the industry’s challenges are emerging from the dynamics of macro environment. According to the Institute of Economic affairs (2005), stakeholders have not been involved in the creation of industry policies which brings into focus the role of corporate social responsibility and the resultant outcome of the choice of strategies.         

According to Raible (2013), industrial theory is key in the influence on the choice of strategy and decision making of company. Ramsey (2001) further articulates that industrial organizational theory is reflected in the structure-conduct-performance model, which claims presence of a link between the structure of a market, the organizational conduct and organizational performance. Porter (1981) pointed out that the central analytical aspect of industrial organization theory can be used to identify strategic choices. Product development strategy is recognized and realized through a process whereby those with the power to make decisions for the organizations interact among themselves with other organizational members and with external parties. This study therefore considers choice of strategy mainly in terms of product development. 

1.1   STATEMENT OF THE PROBLEM        
          Company performance is a function of combination of factors. The concepts

ofenvironment, strategy and performance have been found to have a linkage that derives from the structure conduct-performance (S-C-P) paradigm of the industrial organization economics. Continued existence of house hold product companies necessitates that they continually consider how product development strategy impacts on their performance. How consistent their strategic behaviours are with environmental changes is expected to have implications in their performance. There is empirical evidence of the relationship between choices of strategy on performance of companies. Haeussleret. Al (2012) related development of new products with successful firm performance;Goedhuys&Veugelers (2008) associated product innovations with firm growth while Sharma & Lacey, (2004) found evidence in financial losses to have an implication of product development failures. While different studies have been conducted in different contexts and industries, in the view of the above, this study seeks to address performance implications of product development strategy in terms of development of new products and improvement of existing products in Konga Retail Company, Abuja.         

1.2   OBJECTIVE OF THE STUDY 
The objectives of the study include but not limited to; 
1.    To determine the effect of product development strategy on the performance of an organization. 
2.    To determine the extent to which new product development and improvement of existing products affects performance of an organization. 

1.3     RESEARCH QUESTIONS 

1. Does product development strategy have effect on the performance of an organization?

2. To what extent does new product development and improving existing product affect performance of an organization?

3. Does your competition hinder new product development?

1.4     STATEMENT OF HYPOTHESIS         

H0:Product development strategy has no effect on the performance of an organization.  

H1:  Product development strategy has effect on the performance of an organization.   

1.5   SIGNIFICANCE OF THE STUDY 
The study will be of great benefit to prospective entrepreneur by improving

the performance of the current product line adding new product line. It is noteworthy to maintain that almost in all growth strategies; it follows an up-signing process. This is a management fad used in the context of increasing the size of an organization by mainly hiring more employees. 

1.6     SCOPE OF THE STUDY 
The study is limited to the impact of new product development in an

organization.   
1.7      LIMITATIONS OF THE STUDY 
In the course of carrying out this essay, certain factors militated against the

smooth operation of the work. The exercise was greatly limited due to some of these factors include: 
–       Lack of funds 
–       Time constraints 
–       Inadequate research materials to collect data such as textbooks, journals, magazines 

1.8   OPERATIONAL DEFINITION OF TERMS 

PRODUCT: This is a bundle of physical and psychological satisfaction that a buyer receives from a purchase. It includes not only the tangible object but also such supportive elements as packaging guarantee and other buyer value. Kotler, P. & Keller K.Z. (2006)

NEW PRODUCT: This refers to goods and services that are basically different from those already marketed by a firm. Raphael N.H. & Olson D.Z. (1996)
NEW PRODUCT DEVELOPMENT: Process of developing a new product or service for the market. Ayuba, B. (2009)
ORGANIZATION: Is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.Soroka, (2002)

BUSINESS ENVIRONMENT: This is the attitude consumer or clients display in searching for, buying, using, evaluating and disposing products, services and ideas which they expect will satisfy their needs and wants.Diana Tweda(2005)

TEST RUNNING THE PRODUCT: This refers to putting the new product or services for sale in a limited selection market.Ayuba, B. (2009)

CONSUMERS: Are people who buy product for the purpose of consumption or use.Kotler, P. & Keller K.Z. (2006).