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ASSESSMENT OF DIVERSIFICATION AS A SURVIVAL AND GROWTH STRATEGY: A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC

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ASSESSMENT OF DIVERSIFICATION AS A SURVIVAL AND GROWTH STRATEGY: A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC

 

ABSTRACT

 

The competitive nature of the economy, cause many products and services to lose their distinctiveness, the competitors’ offering of lower prices, and the deteriorating public perception of the business organizations have called for the strategies,  and public relations in the marketing of consumer goods. The concept of Diversification strategy is that, the organization’s eggs are kept in different basket so that the risk of becoming bankruptcy will be reduced.   This research examined the significant impact of Diversification to the Nigerian Bottling Company.  The objectives of the study were to assess the success of Diversification strategy to the organization and to also assess those problems associated with Diversification strategy. The methodology included Survey Design to gather primary data from the 60 questionnaires for the study, Percentage used in presenting and analyzing the gathered data, and Chi-Square used in testing the null hypotheses. The major findings of the study were that; Diversification strategy has a significant impact on the survival and growth of the Nigerian Bottling Company, Diversification adopted by the organization is said to be effective and efficient but has not attained it optimal point due to low attention being given to some element of Diversification such as; horizontal and vertical integration.  Some recommendations proffered were that; the management of the Company should improve more on their core competencies so as to vibrant competitive strength , the company should carry out the review of performance of its various sales of new product at different point in time in other to detect weakness with a view to take corrective measures, the company should embark on comprehensive public relations  to build a good public image, and should be socially responsible to have the support of its environment.

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