When analyzing and comparing C&D competition within the Nigerian Market, major differences were distinguished between local and global companies. The local companies that were analyzed were Rokana Industries Plc., Daraju Industries Ltd., Daily Need, Jims Herbal Products, and Classic Soap Industry. The biggest strength that all native Nigerian companies share is their extensive knowledge of the local market and consumer desires. Their knowledge as to how to manipulate and succeed within the limited infrastructure and overcome distribution obstacles gives them an advantage over global companies. These Nigerian companies also have similar weaknesses such as limited financial resources, a negative impact from decreasing …show more content…
Unlike the local companies, International organizations are not reliant on the price of oil and have significant financial resources that enable them to overcome obstacles such as scarce local resources as well as implementing efficient control measures to reduce operating costs. The weaknesses of global companies include their image of social responsibility in regards to product recalls, controversies of the safety of their products, and failures to properly market to target audiences. Weaknesses such as these often impact the perception of the company and deter consumers from purchasing their products. For a company to thrive in a new market, in a new country, learning those strengths and weaknesses can prove to be very beneficial. When entering a new market, acquiring a local manufacturer would assist in gaining a portion of the established market share. Doing this will help to reduce initial operating and setup costs, since the structure of the manufacturing facility will already be in …show more content…
The Nigerian oral care market is complex, encompasses several strong competitors and it is rich in consumers from various demographics to target. Cost leadership strategy dictates the need to keep costs low to attract consumers, “low-cost leader gains competitive advantage by getting its costs of production or distribution lower than those of the other firms in its market” (Generic Competitive Strategies, n.d.). The main advantage of cost leadership strategy is “cost leaders’ emphasis on efficiency making them well positioned to withstand price competition from rivals” (Encyclopedia of Management, 2009).
Traditional cost leaders keep cost low according to the Encyclopedia of Management, “by minimizing advertising, market research, and research and development” (Encyclopedia of Management, 2009). The disadvantage of keeping costs low by not spending money on market research can result in not keeping up with trends in the market (Encyclopedia of Management, 2009). For C&D can overcome these disadvantages by keeping operating costs low by acquiring Rokana, a Nigerian company with existing warehouse, manufacturing operations, production facilities and an established market