STRATEGIC ADVANTAGE OF SERVICE DIFFERENTIATION ON THE COMPETITIVE SUSTAINABILITY OF TELECOM FIRMS IN NIGERIA

Ayansola A. Ayankola, Bamidele S. Adeleke

Abstract


This study examined the strategic advantage of service-differentiation on the competitive sustainability of firms in the Nigerian telecommunication sector. The specific aims was to ascertain the effect of excellent service-quality on the market share of telecom firms in Nigeria; and as well assess the effect of service differentiation on the Nigeria’s telecommunication firms’ public perceived image. Survey design was utilized and data was gathered through a closed-end structured questionnaire designed on 5-point Likert Scale. The main source of data was primary source and the target population consisted of staff of four main GSM telecomm firms (MTN, GLO, 9Mobile, and AIRTEL) in South west part of Nigeria. A sample size of 207 was drawn from the study population of 488. The formulated hypotheses were tested through Z-test statistics and Simple Linear Regression Coefficient at 0.05 significance level. The findings revealed that excellent service-quality impacted positively (i.e. increased) on the market share of telecommunication firms in Nigeria. The study further shows that service differentiation positively affected (i.e. enhanced) on the Nigeria’s telecommunication firms’ perceived image. It was concluded that there is a strategic advantage of service-differentiation on competitive edge and sustainability of Nigeria telecom firms. The study recommends that the Nigerian telecom organizations should concentrate on providing customers with a lifetime delivery value in order to continue to enjoy survival and effective operations in the sector.

 

JEL: L80, L90, L96

 

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telephone services; service differentiation; competitive edge; market dominancy

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