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).

EFFECT OF POPULATION GROWTH ON THE DEVELOPMENT OF RESIDENTIAL PROPERTY IN WUSE ABUJA

EFFECT OF POPULATION GROWTH ON THE DEVELOPMENT OF RESIDENTIAL PROPERTY IN WUSE ABUJA

CHAPTER ONE

1.0       Introduction

1.1       Background of the study

The impact of rapid population growth on housing development in a developing economy is usually a consequence of the push of the rural areas and the pull of the town. There is always an upsurge and conglomeration of people in city centres with the resultant effects on housing growth arising from acute unemployment. This growth and physical expansion of cities have been accompanied by unplanned urban sprawl, environmental pollution, deterioration, deficiencies in modern basic facilities, and general urban decay (Akpakpan, 2017).

As increased poverty and urbanization exert more pressures on urban facilities, most Nigerian cities tend to have lost their original dignity, social cohesion and administrative efficiency. The relationship between population and housing is two-sided. On the one hand, population change leads to a changing demand for housing. Population growth, and particularly a growth in the number of households, leads to a growth in housing demand. Population decline might lead to a decrease in housing demand. This will, however, only happen in the long run, after not only the number of people but also the number of households has started to decline (Eric, 2015).

Residential property refers to building that is developed for people to live or undeveloped land that is designated for residential use. Residential properties could be a consumption goods, or investment goods (Sratton, 2008). As a consumption goods, it is acquired for owners occupation while as investment goods it is acquired for the purpose of deriving optimum return from outright sale or letting of the property. If this is the case, the price or rent of the residential property becomes very important to the seller and buyer or landlord and the tenant. Hence investment in this type of property is regarded as a considerable source of wealth for many investors.

Property development comprises a significant component of total Nigeria economic output. The property development process involves the continual combination of significant factors of production (land, labour, capital and enterprise). In addition, property development has been characterised by some significant cyclical influences as the process involves significant risk. It is in the interests of capital markets, market participants and the public sector that property development processes are better understood so as to ensure efficient allocation of physical resources, human resources and capital to meet the needs of the ever growing of population of Nigeria (Cadman, 2014).

The impact of rapid population growth on property development and conditions is far more than merely a demographic or quantitative one. Whereas the population growth and urbanization process in the developed countries was the result of rapid industrialization, the growth in Nigeria like most other developing nations is a consequence of the “push” of the rural areas and the “pull” of the town (Kehinde, 2010). The majority of African urban centres developed and continues to develop as commercial-administrative and servicing entities. In Nigeria like in most other developing countries, the growth of the tertiary sector is often a symptom of poverty and stagnation rather than economic development. Consequently, population growth in most of the African countries is characterized by a growing gap between employment opportunities and demand, and an ever increasing shortage of urban services and facilities which are accessible to a diminishing share of urban population. The implication is this deplorable and alarming situation which aggravates the already acute housing problem. It is against this background that this study seek to examine the effect of population growth on the development of residential properties in Wuse Abuja.

1.2       Statement of research problem

World population has risen to over 6.3 billion people and by 2030 over 60 percent of the world’s population is expected to be living in cities. There are now over 400 cities with a population of over a million people (UN-Habitat, 2015).  As population growth is an underlying factor for the demand of housing, without new supply of dwellings, it pushes up the prices for both renting and purchasing dwellings. The problem is further compounded in many of the large cities with a change in living preferences that has resulted in a fall in household rates, particularly in the western world. Hence, population movement to the city and fewer people per household means the supply of more housing is needed. The growth of the population in Abuja Municipal Area Council has assumed a geometrical proportion, the provision of urban infrastructure and housing to meet this demand is, not at commensurate level. This has resulted in acute shortage of housing / residential properties to the teeming population with. The extent of the housing shortage in Abuja is enormous. The inadequacies are far-reaching and the deficit is both quantitative and qualitative; even those households with shelter are often subjected to inhabiting woefully deficient structures as demonstrated in the existence of slums and shanties in and around the city of Abuja. They reside in the slums and squatter settlements scattered around the city and are predominantly engaged in informal economic activities which encompass a wide range of small-scale, largely self-employment activities. This problem can only be brought under control through urban consolidation and/ or development of properties in the urban center. One major effect of this is the cost of infrastructure required, as either new infrastructure has to be put in place or upgrading and extending the existing infrastructure. It is on this note that this study seek to examine the effect of population growth on the development of residential property in Wuse Abuja.

1.3       Aim and objectives of the study

            Aim:

The aim of this project is to examine the effect of population growth on the development of residential property in Wuse Abuja.

Objectives:

The specific objectives of this study include:

1. To determine the cause of population growth in Wuse Abuja and Nigeria at large.
2. To evaluate the state of residential properties in Wuse Abuja
3. To determine the effect of population growth on the development of residential property in the study area
4. To identify other factors affecting residential property development Wuse Abuja
5. Assess the impact of population growth on the demand for residential properties in the study area

1.4       Research Questions

1. What are the causes of population growth in Wuse Abuja and Nigeria at large?
2. What is the state of residential properties development in Wuse Abuja?
3. What are the effects of population growth on the development of residential property in the study area?
4. What are the other factors affecting residential property development in Wuse Abuja
5. What is the impact of population growth on the demand for residential properties in the study area?

1.5       Significance of the study

The importance of the research is to be appreciated by all since concepts of population growth and its effect of residential properties development affects everybody irrespective of class, status or occupation.

However, the study will be importance to the following categories of persons.

1. Government (policy makers): The government will benefit from the study since it will provide the basics for making policy changes and formulating future policies. It helps the economy in planning for development especially in real estate development.
2. Students: The study is important to students since it will reveal more details and provide more information for those who are interested in finding out population trends in Nigeria and its consequences to development of residential properties in Nigeria and also for further studies.
3. Research: This study will provide more information for further research about the population growth and residential property development in Nigeria.
4. Investors in Real Estate: Real estate investors will benefit from the findings of this study as it enlighten on the effects of population growth on development of residential properties, it will put them in better position to make inform decision on how to invest their money.

1.6       Scope and limitations of the study

The scope of this study covers only the effect of population growth on the development of residential property in Wuse Abuja. Other properties such as commercial properties, industrial or educational properties will not be included in this research. Geographically, the study is limited to Wuse in Abuja the Federal Capital Territory.

Limitations

The researcher faced various problems when carrying out this field study. Some of these challenges included:

1. Some respondents were unwilling to fill the questionnaires since they were suspicious about the study. Many perceived it as sharing very vital information which they were not ready to furnish the researcher with.
2. Delays were experienced from the respondents who took very long to complete the questionnaires and constant postponement of the picking date proved to be very frustrating to the researcher.
3. At times some of the respondents did not fill in the questionnaires adequately and ignored certain sections that required the giving of opinions which made it difficult for the researcher to make adequate conclusions.

1.       Operational definition of terms

Population Growth: Population growth is the increase in the number of people that reside within a state or country.

Property development: Property development, is a business process, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of developed land or parcels to others (Wikipedia, 2017).

Property: This is the embodiment of tangible ownership right or bundles of right in real estate. It could also be described as a concept of right which can be held separately (Babatunde, 2003).

Rental Value: This is the worth or value of property in an open market. It is also the value arising out of the lease or renting out of a property on a periodic basis usually yearly.

Residential Property: it is a building that is used or suitable for dwelling purpose. They are dwelling house such as bungalows, duplex, detached houses, semi-detached houses, etc. (LBTT 4010)

1.8       The study area

Wuse is one of the district in Federal Capital Territory Abuja. Wuse District is the north western part of the city, with the Maitama District to its north and the Central District to its south. The District is numbered Zones 1-8.  Wuse Market is Abuja’s most popular market (Zone 5). The second most important Post Office in the city is located here.

This district also houses the Sheraton Hotel and Towers (Zone 4), Ibro International hotel, Rockview Hotel, the Nigerian Customs Services Headquarters, the Foreign Affairs Ministry Headquarters (Zone 1) and Federal Road Safety Commission (FRSC). National Agency for Food and Drugs Administration (NAFDAC) (Zone 7), Wuse General Hospital, and the Nigerian Tourism Development Corporation.