Market Share, Cost Leadership Strategy, and Threat of New Entrants in the Consumer Products Industry in Nigeria

OLADIPO Jacob Olubukola¹* & SANGODOYIN Oluranti Olukemi^2
1Marketing Department. Ladoke Akintola University of Technology
P.M.B 4000. Ogbomoso. Oyo State. Nigeria
2Faculty of Management Studies Academic
First Technical University Ibadan. P.M.B 5015, Oyo State. Nigeria
*For correspondence, email: jooladipo31@lautech.edu.ng

Abstract
This study examined the relationship between market share (MSH), cost leadership strategy (CLS), and the threat of new entrants (TNE) in Nigeria’s consumer products industry. Using purposive sampling, four companies manufacturing consumer goods for homes were selected based on their market capitalization and relevance to the study‘s focus. Multivariate regression analysis, confirmatory factor analysis (CFA), and structural equation modeling (SEM) were employed to analyze primary data collected via a questionnaire. The findings demonstrate that a decrease in market share correlates with an increase in the threat of new competitors, highlighting the necessity for companies in the consumer products industry to establish robust defenses against these threats. Furthermore, while pursuing cost leadership can be successful, significant gains in market share require it to be paired with additional strategies. The study corroborates previous research findings.

Keywords: Consumer goods sector, Cost leadership strategy, Customers, Market share, Threat of new entrants.

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