An Evaluation of the Role of Competitive Strategies in the Development of Small and Medium Scale Enterprises in Nigeria (A Case Study of Kaduna State)

Samuel T. Achie, Sule Yahaya Sado


For any business to be successful, the organization must have a good strategic framework, and be aware of the need for all the top management or the policy formulators to be able to think strategically and have a good framework to implement such strategies effectively and efficiently. Strategic management is an important element of organizational services. Strategic success requires a clear identification and understanding of the need of the market and satisfying the customers more effectively and profitably. Real competitive advantage implies that companies are able to satisfy customer’s needs more effectively than their competitors which are only achieved if only real value is given to customer. The study is aimed at proving whether Small and Medium Enterprises that understands their customers can creates competitive advantage and benefit from lower prices and loyalty of customers, since higher capacity utilization can help to reduce cost. The objectives of the study is to appraise the value of competitive strategic management concepts and techniques, as applied to SMEs and to determines the best ways the SMEs can apply the competitive strategic management ideas in a time-saving manner. In Kaduna state, studies and researches has shown that 60% of SMEs failed in the first three years of establishment and in Nigeria at large, the picture is much the same with eighty percent 80% of most startups fail within their first five years. To carry out this research effectively, 45 questionnaires were distributed to randomly selected SMEs in Kaduna State Spread across the southern and Northern part of   Kaduna metropolis. The study revealed that the advantages of competitive strategy surpassed the disadvantages and also revealed that any bad or good strategy by top management affects the organization directly. The researcher was also quick to advice that management of SMEs should always survey the market and the market forces likely to confront them before jumping into a competitive market.

Key words: evaluation, role, competitive, development and strategy

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