Managing During the Challenging Time: Does Intensive Strategy Dictate Corporate Growth of Downturn Firms in the Fast Moving Consumer Goods Sector?

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Anthony O. Ude, Charity A. Ezenwakwelu, Chuka U. Ifediora, Edith O. Onyeanu, Dennis O. Amadi

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During trying times such as when there is declining sale or corporate ineffectiveness, firms face several dilemmas on the best strategic decisions that could guarantee sustainable growth. In this study, the relationship between intensive strategy and corporate growth of firms during a downturn situation was investigated. The paper specifically investigates if market penetration strategy affects firms’ survivability and as well evaluates the impact of market development strategy on turnover level of FMCGs. Survey design was adopted and data was collected through a structured self-administered questionnaire designed on 5-point Likert scale. The main source of data was primary collection and the target population consists of management staff of three selected FMCGs in Southeastern Nigeria, in addition to the randomly selected customers that patronized the selected firms. A sample size of 422 comprising of 77 staff and 345 customers was drawn from the study population. The formulated hypothesis wastested with correlation analysis at 0.05 level of significant. The study found that market penetration strategy positively affects the continued survival of FMCGs. The study further discovered that market development strategy enhanced the sales turnover. It is recommended that commercial enterprises should continue to exploit intensive growth strategy to its full potential so as to revitalize the firm from the long existing downturn. Furthermore, there should be an increased personalization of services to such an extent that their existing customers will remain locked in and newcustomers continue to beattracted.

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