ANALYSIS OF BUSINESS COMPETITIVENESS IN MANUFACTURING, FOOD AND BEVERAGES, AND ADVERTISING BUSINESSES IN KADUNA METROPOLIS AND ZARIA AREA

ANALYSIS OF BUSINESS COMPETITIVENESS IN MANUFACTURING, FOOD AND BEVERAGES, AND ADVERTISING BUSINESSES IN KADUNA METROPOLIS AND ZARIA AREA

Abstract:

This study evaluated business competitiveness in selected businesses in Kaduna metropolis and Zaria area using the Probit and Tobit regression models, and Pearson Minimum Chi-square. Purposive sampling technique was used to select 40 businesses each from Manufacturing industry, Food and Beverage industry, and Advertising industry located in Kaduna metropolis and Zaria area. The results of the Probit regression model showed that the selected businesses are not competitive in terms of profit maximization, sustained growth rate in profit, quality of products/services, cost of production, growing market share, innovation and technology, pricing policy, and new product development (R&D). The Tobit regression results revealed that unavailability of electricity, weak operating environment, and inefficiency in production, low rate of technological change and application, poor quality of labor employed and poor pricing policy decreased competitiveness in the selected businesses. The Chi-square tests of the Probit and Tobit regression results showed that only profit growth rate, new product development (R&D) and out sourcing of raw materials are marginally indicative of competitiveness in Manufacturing in Kaduna metropolis. Also, only the out sourcing of raw materials variable was indicative of competitiveness in Food and Beverages in Zaria area. This study concluded that the selected businesses have been unable to meet the goals of efficiency in production, growing market share, high quality of products/services, falling cost of production, growing market share, and new product development and therefore, not competitive. The study recommends a synergy of efforts by the government at all levels and the private sector to fast-track completion of on-going Integrated Power Projects (IPP), fix and upgrade existing electricity power facilities in Nigeria in order to increase the amount of electricity generated to significantly drive down business costs. Also, it is recommended that Nigerian businesses should adopt the rapid response approach in the application of modern technology and innovation in order to improve on the quality of their products and services, and compete favorably with imported products and services

ANALYSIS OF BUSINESS COMPETITIVENESS IN MANUFACTURING, FOOD AND BEVERAGES, AND ADVERTISING BUSINESSES IN KADUNA METROPOLIS AND ZARIA AREA