Impact of Product Differentiation on Organizational Profitability: Lessons From 7UP Bottling Company Kaduna, Nigeria
Keywords:
Product differentiation, Organizational profitability, 7Up Bottling CompanyAbstract
This study examined the impact of product differentiation on organizational profitability using an ex-post facto descriptive survey research design with specific reference to Seven-Up Bottling Company, Kaduna, Nigeria. Three research questions were developed to guide the research. Product Differentiation impact on Organizational Profitability Questionnaire ‘(PDIOPQ) was used to collect data after it was tested and its content reliability coefficient calculated at 0.86, using Cronbach Alpha. Furthermore, its face validity was ascertained. Eighty-nine questionnaires were distributed to the respondents, but only eighty (80) or 90 percent were returned. Statistical analysis was conducted using both descriptive and inferential statistical methods. The study shows that product differentiation, product attributes and unique selling proposition had a significant impact on 7UP Bottling Company Kaduna. It recommends that, 7UP Bottling Company should embrace strategic change and the latest knowledge technologies to learn, unlearn and relearn newer innovative ways of doing business that will allow them to realize greater benefits.
Downloads
References
Abu Aliquah, K.M. (2012). Differentiation and organizational performance; Empirical Evidence from Jordanian Companies. Journal of Economics, Vol.3.no 1.
Acquaah M, Yasai-Ardekani, M. (2008). Does the implementation of a combination competitive strategy yield incremental performance benefits? A new perspective from a transition economy in Sub-Saharan Africa. Journal of Business Research, 61: 346-354.
Adegbite, I .O, Osnowo A, Omisore, A.O and Ayinde, A (2019). The impact of service differentiation on creating competitive advantage; catreg regression perspective. Journal of pure and Applied science,15 (190,142-155
Allen, R., & Helms, M. (2006). Linking Strategic Practices and Organizational Performance to Porter's Generic Strategies. Business Process Management, 12(4), 433-454
Amar, M.Y. (2016). The influence of product differentiation strategy on operational performance at small and medium enterprises in south Sulawesi, Indonesia, Journal of economics Business and Accountancy Ventura,18 (3),343-350.
Amoako-Gyampah, K and Acquaah, M. (2008). Manufacturing strategy, competitive dstrategy and firm performance: An Empirical Study in a developing economy environment. International Journal of Production Economics, Vol.111
Anderson S., Simon P. P., De Palma A., and Thisse J-F. (1992). Discrete Choice Theory of Product Differentiation. US: MIT Press Massachusetts.
Anekwe, R; Onudugu, V; Okolo, N; and Akaegbobi (2021). Differentiation Strategy and Organizational Growth of Manufacturing Firm in Ebonyi State, Nigeria European Journal of Social Sciences ISSN 1450-2267 Vol. 61 No 3 March, pp. 175-181 http://www.europeanjournalofsocialsciences.com/
Bagshaw, K. B. (2017). Process and Product design: Production efficiency of manufacturing firms in rivers State, Nigeria. Engineering management Research; Vol. 6. No. 1.ISSN 1927-7318. E-ISSN 1927-7326. Published by Canadian center of science and Education. URL;htp;//doi.org/10.5539/emr.v6n1p.49 online published March 20
Barney, J. and Arikan, A.M. (2001). The resource based view; origins and implications. Handbook of strategic management. Oxford: Blackwell publishers.
Barney, J.b. (2007). Gaining and sustainable competitive advantage (3rd ed), Upper Saddle River, NJ: Pearson Education.
Barney, J.B. (2001). Is the resource-based view a useful perspective for strategic management research? Yes. Academy of management review, 26,41-56
Bategeka, L. and Okumu, I.J. (2010). Banking sector liberalisation in Uganda: Process, results and policy options a. Amsterdam: Centre for research on multinational corporations.
Baines, A. and Langfield-Smith, K. (2003). "Antecedents to management accounting change: a structural equation approach", Accounting, Organizations and Society, 28: 675-98.
Baum, J. R., Locke, E. A., & Smith, K. G. (2001). A multidimensional model of venture growth. Academy of Management Journal, 44(2), 292-303.
Best, F. (2009). Understanding Business (8th Edition). London; Macmillan Publishers Boggs, Robert L. (2004) Honored Feathers of Wisdom: Attributes for Personal and organizational growth. Universe,
Bordes, J. (2009). Building and Sustaining Competitive Advantage. Honolulu, Hawaii: Atlantic International University.
Byron, S. and John, D. (2001). What is Differentiation and How Does it Work? Journal of Marketing Management 17(7):739-759.
Cascio, W. F. (2003). Managing Human Resources Productivity, Quality of Work Life, Profits. New York: McGraw-Hill.
Christensen CM (1997). The innovators dilemma; when New technologies cause great firms fail. Boston; Harvard business school press.
Chiguvi, D., Nyoni, S., and Guruwo, P. T. (2017). The Impact of employee satisfaction on service technical quality at chicken express outlets in Gaborone, Botswana. International Journal of Innovative Research and Development, 6(4), 212–224. https://doi.org/10.24940/ijird/2017/v6/i4/FEB17011
Chikwe, J. E. (2018).Corporate social responsibility and conducive operating environment of oil and gas companies in Nigeria. Nigerian journal of oil and Gas technology, 3 (2),80-95. March.
Chikwe, J.E. (2018). Business Policy and Strategic Management Dynamics, Text and cases;
Chikwe, J.E. and Biriowu .C.S. (2018). Strategic planning and firm’s sustainability in turbulent business operating Environment: Lessons from selected oil and Gas industry in Nigeria. International Journal of Business and General Management (IJBGM). ISSN (P); 2319-2267; ISSN€:2319-2275. Vol.7, Issue 6, Oct- Nov.5-16. IASET
Cohen, M. A., and Uday, M.A. (2008) cited in Bagshaw, K. (2017). Process and Product design: Production efficiency of manufacturing firms in rivers state, Nigeria. Engineering management Research; Vol. 6. No. 1. ISSN 1927-7318. E-ISSN 1927-7326. Published by Canadian center of science and Education. URL;htp;//doi.org/10.5539/emr.v6n1p.49 online published March 20.
Corporate Finance Institute (CFI), (2021). Product differentiation: The Introduction of unique, Distinctive Characteristics or Features to a product.
Christina, G. (2019). Product differentiation: What Every Product Manager Needs to Know. Retrieved from: https://medium.com/agileinsider/what-every-pm-should-know-about- differentiation-6e658b777bda
Carol, M.K. (2021). Business-Marketing Essentials: Product Differentiation. Retrieved from: https://www.investopedia.com/terms/p/product_differentiation.asp
David, M.L. (2017). Price Gouging is fine but Humans Are better, Econlib, November. The library of Economics and liberty. Online Library
Demba, R. N., Ogal, V. O., and Muli, J. (2018). Effect of differentiation strategy on performance of selected car rental businesses: A case study of Nairobi City County, Kenya. The Strategic Journal of Business Management, 5(4), 1880 – 1895.
Deephouse, D. L. (1999). To be different or to be the same? It’s a question (and theory) of strategic balance. Strategic Management Journal, 20, 147-146
Dirisu, I., Oluwole, I., and Ibidunni, O. S. (2013). Product differentiation: A tool of competitive Advantage and Optimal Organizational Performance (A Study of Unilever Nigeria Plc. European Scientific Journal, 9 (34).
Editorial Team (2021). What Is Product Differentiation? Types and Examples
https://www.indeed.com/career-advice/career-development/product-differentiation. Retrieved online September 15
Faud, M. Hanafiah, H. and Wibowo, G.A. (2019). The role of product attributes in forming consumers perception of local packed drinking water brand in Lanfgsa city Cited. Annual conference of science and technology. Journal of physics; conference series. 1375. Doi;10;1088/1742-6596/1375/1/012059.
Ghaharoudi, M. R .and Sagheb,S. (2018). The impact of differentiation strategieson the Performance of women’s fashion clothing industry. Journal of Economics and Business, 1 94), 381-400.
Griffin R.W. (2005). Management. Eight Edition. Houghton Mifflin Company China.
Hayes, R.h., Piano, G.P.,David, M., Upton, S. and Wheelwright,C..(2012). Restoring our competitive edge. London: John Wiley.
Hayes, R. H., and Schmenner, R. W. (2008). How Should You Organize Manufacturing? Harvard Business Review, 56(1), 105-118.
Hart, M. (209). Product differentiation and what it means for your brand.blog.hubspot.com.online publication. May 2.
Helfat, C. and Peteraf, M. (2009). Understanding dynamic capabilities; Progress along a developmental path; Sage publications U.K, England.
Hine, R.C. and Greenaway, D. (2016). Intra-industry trade; Singaporean Journal of Business Economics and Management studies, vol2, no.11,2. NO.11,.
Iheanachor, N. and Olayinka David-West, O. (2021). The role of product development practices on new product performance: Evidence from Nigeria’s financial services providers. Journal of Technological forecasting and Social change. Vol 164, March. https;//doi.org/10.1016/j.techfore.2020.120470.
Indermun, V. (2014). Importance of human resource management practices and the impact companies face in relation to competitive challenges Singaporean Journal of Business Economics and Management Studies. Vol.2, NO.11, 2014. Pp.1-11.
Kabuoh, M.Alagbe,A; Ubabudu,ary, and Ibe-Moses K. (2017). Strategic Entrepreneurial Resource Management and Competitive Advantage of SMEs in Nigeria. International Journal of Entrepreneurial Development, Education and Science Research. IssN online 2360-9028. Volume 4, Number 2. August. Pp.91-100.
Kavale, S., Mugambi, F. and Namusonge, G. (2016). The effects of product differentiation strategy on corporate growth in selected micro finance institutions in Kenya. International Journal for research in business, management and accounting, 2(6), 13-28.
Khaligh, A. B.; Haghighi, M; and Nazari, M. (2020). An exploratory model of competitive advantage through dynamic capabilities and differentiation. Approach for Knowledge based competencies. PDF. Doi; 10.21203/rs.3.rs-426/41v1.
Kharub, M.Patle, B. K. and Sharma, G. (2015). The relationship between differentiation strategy and firm performance; A mediating role of quality management. Journal of mechanical and civil engineering, 66-71.
Kiama, M.P. and Kagiri, W.K. (2016). Effects of product differentiation Strategies on organizational competitiveness; A case of EABL, Kenya. European Journal of Business and strategic Management. ISSN xxxx-xxxx (Paper). ISSN-265X (online). Vol.1.Issue 1. No.1. Pp.117-133.
Kotler, P. T. and Armstrong G. 92013). Principles of Marketing. New jersey; pearson prentice Hall Malik S.U. (2012). Customer Satisfaction. Perceived Service Quality and Mediating role of perceived Value. International. Journal of marketing studies, 4.68-76.
Kotha, S. and Orne, D. (1989). Generic manufacturing strategies: A conceptual synthesis Strategic. Management Journal (1986-1989). 10.3: 211.
Kotler, P., and Andreasen, A. R. (2006). Strategic marketing for non-profit Organizations (5th ed.). Upper Saddle River, New Jersey: Pearson Education/Prentice-Hall.
Kotler P. and Keller K. (2014). Marketing Management. (14thedition). India: Prentice.Krugman, P. (2021). Law of demand; Definition and Examples. Master class oct 29 Li, D. Y., & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China. Journal of Business Research, 67(1), 2793–2799. doi:10.1016/j.jbusres.2012.08.007 [Crossref], [Web of Science ®], [Google Scholar] Education.
Kumar, B. (2021). What a unique selling proposition is (And is not) Plus 10 examples to inspire you.
Lee,K. and Yoo, J. (2019). How does open innovation lead competitive advantage? A dynamic capability view perspective. PLoS ONE 14 (11): e0223405.https//doi.org/10.1371/journal, pone.0223405.
Lei, D and Slocum J. 2009). The tipping points of Business Strategy: The rise and decline of competitiveness. Organisational Dynamics. Vol.38. No.2. Pp. 131-147. Available online at www, sciencedirect.com. ISSN 0090-b 2616.doi;10; 1016/j.orgdyn. 2009. 3.001pdfresearch gate.
Mateus, M.B. (2017). How to achieve competitive advantage through operations. Available online. https;//www.linkedin.com/pulse/how.achievecompetitive-advantage-through operations-manual-mateus.
Mbugua, J. W. and Kinyua, G. M. (2019). Personnel differentiation and organization Performance: An Empirical Analysis of Deposit Taking Micro-Finance Institutions in Nairobi City County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(7), 485-495.McCracken, M. and Wallance, M. (2000). Towards a Redefinition of Strategic HRD. Journal of European Industrial Training, 24(5), 281-290.
McNamee, H. (2020). List of 15 product attribute examples and types. Published at https;//thecommmanager.com. July 10,
Melissa, H. (2021). The Difference between Profitability and Profit. Retrieved from: https://www.investopedia.com/ask/answers/012715/what-difference-between- profitability-and-profit.asp
Miles, R. E., & Snow, C.C. (2011). Organizational strategy, structure and process. New York, NY: McGraw-Hill.
Mosey, D. (2009). Early contractor involvement in building procurement; Contractors, partnering and project management. Chicester. Wiley Blackwell.
Mooney,a. (2007).core competence, distinctive competence, and competitive advantage: what is the difference? Journal of Education Business, Vol 83 Issue 2
Myllyla, J. (2016). Strategic planning and business strategy consulting blog. How to achieve competitive
Nord, W. & Tucker,S. (1987). Implementing routine and radical innovations. San Francisco; New Lexington press
OpenStax, (2019). Principles of Management. Texas USA
Osuala, E.C. (1988). Fundamentals of Nigerian Marketing, Onitsha:cape Publishers Intl. Ltd Reeves, R. (1961).Reality in advertising. New York; Alfred A. Knopf
Parajogo, D.I. (2007). The relationship between competitive strategies and product. Quality industrial management and data systems. Vol.107
Palmer, J. (2020). What are the different types of profit measures and which is the most reliable. Retrieved from:
Pondeville, S., Swaen, V., & de Rongé, Y. (2013). Environmental management control systems: The Role of contextual and strategic Factors. Manag. Acc. Res., 24, 317-332.
Porter M.E. (1990). The competitive advantage of Nations; Free press: New York, NY, USA, 1990. Google scholar.
Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance Free Press, New York.
Porter, M. E (1980) Competitive strategy: techniques for analyzing industries and competitors. Free Press, New York. USA. Free Press
Porter, M. E. (2008). The Five Competitive Forces that Shape Strategy. Harvard Business Review, 86-104.
Porter, M. E. (2009). Global Business. South-Western Cengage Learning.
Prahalad, C.K. & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review, 68, 3. 82
Pullman, M.E. & William, L.M. (2011). Optimal service design; Integrating marketing and operations perspectives. International Journal of Service, industry management, 10 (2). 239-260. https;/doi.org/10.1108/01443570910953577.
Raduan, C. R., Jegak, U., Haslinda, A., & Alimin, I. I. (2009). Management, Strategic Management Theories and the Linkage with Organizational Competitive Advantage From the Resource-based Perspective. European Journal of Social Sciences, 11(3), 402-418.
Rahman, H., Berawi, M. A., Berwai, A. R., Mohamed, O., Othman, M., &Yahya, I. A. (2011).
Delay Mitigation in the Malaysian Construction Industry. Journal of Construction Engineering and Management, 132 (2), 125-33.
Rasouli, G., M. & Sepideh, S. (2018). The Impact of Differentiation Strategy on the women Clothing performance. Journal of Economics and Business, 1, (4), 381-400. Doi:10.31014/aior.1992.01.04.33
Robbins, P; DeCenzo, D & Coulter, M. (2013). Fundamentals of Management. Essential Concepts and Applications. Eighth Edition. Pearson Education Limited. USA.
Sandlberg, W. R. (2010). New Venture Performance: The Role of Strategy and Industry Structure. Massachusetts: Lexington Books.
Schermerhorn, J.R. (jr) (2008). Management 9e. John Wley & Sons, Inc. USA.
Shafiwu, A. B; Mohammed, A. (2013). The effect of product differentiation on profitability in the petroleum industry of Ghana. European Journal of Business and Innovation Research Vol.1, No.4, pp.49-65, December. Published by European Centre for Research Training and Development UK (www.ea-journals.org)
Shammot, M. M. (2011). Quality Management practices and their Impact on organizational performance, and customer behavior. European Journal of Economics, Finance and Administrative Sciences, Issue 34
Slater, S., & Olson, E., (2001). Marketing’s contribution to implementing of business strategy: an empirical analysis. Strategic management Journal 22 (1), 1055-1068
Smallbusinessdecisions.com, (2021). Increasing profits by focusing on your differentiation strategy.
Smith, M. (2007). Fundaments of Management. Published by McGraw Hill Education. (UK) Simon, R. (2014).
Spanos, Y. E., & Lioukas S. (2001). An examination into the causal logic of rent generation: contrasting porter’s competitive strategy framework and the resource-based perspective. Strategic management Journal, 22 (10), 907-934.
Steinberg, S. (2021). Edge Out Competitors with a Product Differentiation Strategy. Futurist and Keynote Speaker, AKeynote Speaker.com. May 5
Teece, D.J. (2018). Business Models and dynamic capabilites. Long Range Planning, Vol. 51 pp, 40- 49. https;//doi.org/1016/j.irp.2017.06.007
Teece, D.J. Pisano G, Shuen, A. (1997).A dynamic capabilities and strategic management. “Strategic Management Journal. 18 (7); 509-533.
Teece, D. J. (2007). Explicating dynamic capabilities. The nature and micro foundations of sustainable enterprise performance. Strategic Management Journal, 28 (130.1319-1350.
Thread Strategy (2019). The Nigerian soft drinks market-what you need to know. The thread group. https;//thethreadgroup.com. Nov.29
Violinda, Q. Dirgantara, M. and Sufian, S. (2016).Differentiation Strategy and organizational culture; Case study of Semarang State University, International Journal of Economics behavior and organization, 4 (2),8-17.
Vonderembse. M. A. and White, G.P. (2021). Operations management; concepts, methods and strategies. Danvers, MA; John wiley and sons. Reference for business. com
Wambaka, K and Adegbuyi, A (2021). Product Differentiation Strategy and Perceived Financial Performance of Commercial Banks in Uganda. International Journal of Business and Management Invention (IJBMI) ISSN (Online): 2319-8028, ISSN (Print):2319-801X www.ijbmi.org||Volume 10 Issue 7 Ser. II||July 2021||PP 52-60. Journal DOI- 10.35629/8028
Wang Y. & Lo. H. (2003). Customer-focused performance and the dynamic model for Competence building and leveraging; A resource-based view. Journal of management development. Vol.22pp.483-526
Wu Ly, Oketen, D (2007) Transforming resources to improve performance of technology-based firms: A Taiwanese Empirical study. Journal of Engineering and Technology Management 24 (3), 251-261.
Wheeler, A. 2009. Designing brand identity. New Jersey; John Wiley and sons, inc
Wheelwright, S.C. (1978). Reflecting Corporate Strategy in Manufacturing Decisions. Business Horizons, 21(1), 57-65. Weihrich, H; Cannice, M.; & Koonz, H. (2011). Management. A Global and Entrepreneurial Perspective. 13th Edition. Tata McGraw Hill, New Delhi.
White, C. (2004). Strategic Management. Hampshire, England: Palgrave Macmillan.
Wu, L. Y and Wang, C. J. (2007). Transforming resources to improve performance of technology-based firms; A Taiwannese Empirical Study. Journal of Engineering and Technology Management. 24 (3); 251-261.
Wu, Ly and Oketen, D (2007) Transforming resources to improve performance of technology- based firms: A Taiwanese Empirical study. Journal of Engineering and Technology Management 24 (3), 251-261.
