DIFFERENTIATION STRATEGY AND MARKET PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN SOUTH EASTERN NIGERIA

Abstract

This study examined the relationship between differentiation strategy and Market Performance of small and medium scale enterprises (SMEs) in South Eastern Nigeria. The study was carried out to identify the extent differentiation strategy business approach has helped to achieve business goals. The design adopted was survey; and questionnaire was used as an instrument of data collection. The data collected were presented in tables and analysed using mean statistic and tested with Pearson product moment correlation coefficient (at 0.05% level of significance) through SPSS version 21.0. From the results of the test of hypotheses, it was found that differentiation strategy has significance and positive relationship with sales volume, customer acquisition, and market share. It was concluded that the achievement of improved market performance in small and medium scale enterprises (SMEs) depends on the extent of implementation of differentiation strategy. The study recommends that small and medium scale enterprises (SMEs) should try as much as possible to differentiate their products from that of their competitors to achieve more sales. Also, business firms should adopt differentiation strategy as a way to introduce uniqueness to their products to attract and retain more customers.