Effect of Focus Strategy on the Performance of Small Scale Businesses in Maiduguri Metropolis

Abstract

Adopting one of the three of Porter’s generic strategies will help the organization to achieve favorable position in the market place. The study examines the effect of focus strategy on the performance of small scale businesses in Maiduguri Metropolis. Past studies have observed the effect of focus strategy on the performance of telecomunnication industry in Port Harcourt, however focus strategy in relation to performance of small scale businesses in Maiduguri Metropolis have received little scholarly attention in. A sample of three hundred and twenty (320) was obtained using the Taro Yamane formular from the total population of one thousand five hundred and ninety five (1595). It was found in this study that there is a significant positive effect of niche strategy on business performance which is not a problem inhibiting performance and it was also found that there is a negative significant effect of low cost strategy on business performance which accounts for the major cause of the lack of performance of small scale businesses in Maiduguri Metropolis. The following recommendation were made; That owners of small scale businesses should carve out a particular market niche to target and position their market offerings in the mind of their prospective customers more than the way their competitors do, and owners of small scale businesses should try to achieve low cost i.e produce quality products compared to that of their competitors as it is an essential variable in achieving a favourable position in the market place.