SURVIVAL STRATEGIES ADOPTED BY SMALL –SCALE RETAIL OUTLETS IN NIGERIA (A CASE STUDY OF EASTERN SHOP OGUI ROAD ENUGU)
1. BACKGROUND OF THE STUDY
Strategies are an integrated programme, which an organization employs in order to achieve her objectives or the overall response of a local organization to the demand of her environment. Every organization must as a matter of necessity have a strategy either consciously or unconsciously formulated.
There are a good number of strategies a small –scale business can choose. The first is market retention, which involve maintaining and extending their activities in established market, through product line and adoption. There is bound to be balancing strategy when the organisation attempted to balance cost and revenue.
The third is market development strategy, which occurs when a firm concentrated on market development tailored to the need of need of new market while at the same time attempting to expand business in existing market.
However, the risks involved are greater then for the first two strategies described above. But well managed companies with good track records will usually be adopting this strategy in the fulfillment of corporate objectives for growth and improvement in business standard as well as encouragement of improved profitability in the entire enterprise.
These components provide us with the idea of the opportunity set a company and how the company can perform her activities in the environment in order to achieve his objectives.
1.1 GENERAL BACKGROUND TO THE SUBJECT MATTER
In 1986, the federal Government of Nigeria introduced the structural adjustment programme (SAP) since then, the Nigerian business environment has experienced a drastic change. Many small-scale industries have emerged and closed up as a result of the pursuit of structural adjustment programme objective.
However, it is a well known fact that measures of security enjoyed by government departments does not extend to private centers operating under(SAP) face products also affects some retail outlets, since the production of similar products are not possible may be due to lack of capital to import the needed machinery most of the people who are used to the product now diverts to other available ones while most retail outlets may not recognized the shift due to lack of knowledge of marketing research. The marketing research on the market environment is the cause of failure of most store owners. Within the Enugu urban the story is not different except for some well established supermarkets. They survive through the application of some sales and marketing strategies such as discount, gift, product line etc.
1.2 OBJECTIVES OF THE STUDY
This study seeks to generate empirical knowledge about the survival strategies adopted by small scale retail outlets in Enugu. Specifically, the study is aimed at identifying the following.
1, the major problems that pose a threat to the survival of small scale firms in Nigeria.
2. The growth vector of small scale retail outlets.
3. The effects type of location and relocation of stores.
4. To identify the type of incentive adopted by these outlets.
5. To initiate the owner of small scale business outlets to the use of discounts, product line and diversification
1.3 PROBLEMS THAT THE STUDY WILL BE CONCERNED WITH.
The scope of this research is mainly on some of the retail shops within Enugu urban these shops are selected from ogui road (Eastern shop Enugu) the study of these shops also covers other communities in Enugu urban for it seems to be a well and special are aim Enugu where greater outlet are located. In the course of undertaking the study, the researcher observed certain limitations to the study, such as lack finance, lack of business knowledge interest pursuance and time factor among other problems associated with growth and development of small scale retail outlets in Nigeria.
1.4 THE IMPORTANCE OF STUDYING THE AREA.
Considering the service of small scale outlets to their consumers, it becomes important and virtually imperative for the survival strategies to be clearly spelt for the existing and in tending owners. It is the need for the study to make a viable and purposeful rectification, so as to clearly identify the impact of survival strategies for small scale firms that should be in decision relating to establishment.
This study is targeted at mapping out effective strategies for the up lifted of small scale outlets through consumers satisfaction. There is also the need for the study to arouse consciousness to the benefit of professional markets in our business organizations. The resultant finding and recommendation will contribute and lead to a more effective decision making by owners/managers of small- scale shopping centers toward continued existence and successful operation. It can equally provide a useful guide for prospective owners of small scale outlets who may wish to choose self –employment as a career, particularly in a depressed economy like ours (Nigeria) Nigeria as a nation is blessed with so many industries and academic institutions whose service to the nation would forever remain invaluable. These industries are charged with the responsibilities of producing good of high qualities and standards at a very reduced and affordable cost for the citizenry. Goods in this respect become so vital that no result could be achieved without a good distribution network. At this instant, the retail outlets must have a cleat set of strategies to satisfy the consumers and achieve its set goal of survival. The researcher is faced with the problems of investigating how small scale retail outlets use discount, location and relocation, product line, cool structure margin and diversification to accommodate market changes and as a means of survival.
1.5 DEFINITION OF IMPORTANT TERMS.
Strategies provide a business organisation the concept its business activities hence, what is on business? The logic of the importance of strategies well formulated is that every business has strategies either conscious or unconsciously formulated. This is why stoner (1982) defined organization over its overall response of a business organization over its environment. Objectives tell us how to get there. According to Ausoff (1965-p 73) goods strategy has four major components. There are:
1. Competitive advantage: An organisation is said to have competitive advantage over business. When it has workable strategies, which aid the upliftment of business activities in the midst of its competitors.
Iii product market strategy: this is principle aim of any business organisation in the effective and efficient market of a particular product. This strategy is aimed at improving the sale of the production question many business entities adopt different product market strategies depending on the environment they do carryout their business activities as well as the nature of their competitors.
iv. Synopsis: this represents other advantages got from a good business strategy. A part from the advantages of good business strategy well carried out elucidated in the first chapter of this write up, there are other advantages, which were not written too numerous to mention. The proper understanding of business strategies by business managers goes a very long way to achieving the proper, effective and efficient to achieving the proper, effective and efficient upliftment of business organization in question.
Other programmes of the federal government which have been of immense aid to the entire populace are:
FEP: which means free education programme the federal government and some state government have adopted this measure to curb the rate at which illiteracy. This rising in the country. Since the inception of the programme, many people who would have not had the opportunity to attain qualitative education have taken the advantage of FEP to get themselves free from the bondage of illiteracy. This programme has equally the growth of business activities to a greater degree since the money people have spent in education is greatly enhanced.
At the other hand the family and poverty all aviation programme. To be candid, since the inception many poverty programme in the country many poverty alleviation programme in the country many poverty ravaged citizens have been up small scale business organisation to a very great and has equally improved the living standard of out inhabit.