Introduction

The changing world economic order, such as international trade

liberalization and the growing integration of the world economic termed
globalization during the last three decades have meant that all countries have had
to focus attention on ensuring that their industries are globally competitive. While
evidences of the long-term from globalization are clear, the process involved in
achieving them can often be complex and difficult to understand. They will in
many cases present challenges that many businesses, communities and groups are
not familiar with.
Globalization describes an on-going process by which regional economics,
societies, and culture have become integrated through a globe- spanning network
of communication and trade. The term is sometimes used to refer specifically to
economic globalization the integration of national economics into the international
economy through trade, foreign direct investment, capital flows, migration and the
spread of technology. However, globalization is usually recognized as being driven
by a combination of economic, technological, socio cultural, political and
biological factors.
As a phenomenon, it implies that a greater independence is happening
among different regions and countries of the world, in terms of finances,
trade and communications.
As a theory of economic development, one of its major assumptions is that a
greater level of integration is taking place among different regions of the
world, and that this integration is having an impact on economic growth and
social indicators.
Daly (1999) observes that globalization processes are qualitatively different from
internationalization processes. They involve not merely the geographical extension
of economic activity across a national boundary that is internationalization, but
also and more importantly, the functional integration of such internationally
dispersed activities. The current process of globalization produces new globalfunctional unity and competitiveness.
Nigeria for the past two decades or more has being grappling with the problems
of modernization so that her enterprises could remain competitive in the global
economy. Various approaches have been used to realize these objectives
mentioned. It is intended that industrial sector would become prime mover of the
economy through the widely diversified investment portfolio of heavy industries

such as pulp and paper project, iron and steel complex, auto assembly plant, freight
and forwarding business, aluminum smelting and petroleum resources refining.
Unfortunately, the much expected accelerated pace of industrial development
through this policy was not realized. Apart from the high cost structure and
geographical concentration of most of these large industries, the local value added
by them to the domestic economy has been relatively low. The employment impact
of these large scale firms was minimal given their high capital co-efficient. It is
also observed that the industrialization process did not integrate other sectors of the
economy. The linkage between agriculture and industry for example was at best
tenuous.
The global recession of the early 1980s and the attendant oil glut exposed the
structural weakness of Nigerians approach to industrialization. The economic
realities of the precipitous decline in oil earnings in the eighties and the failure of
industrialization policy necessitated a policy re-direction aimed at re-aligning
domestic production pattern with the local resources base. Accordingly, the
promotion of Small and Medium Scale Enterprises (SMES) was recognized by the
government as a means of achieving not only rapid industrialization but also to
make them competitive in a global economy. The focus on small and medium scale
enterprises is predicated on their impacts and potential contribution to the broadbased economic development as well as their catalytic effect in achieving macro
objectives such as employment generation, diffusion of economic power and
promotion of indigenous technology. It is also observed that in some newly
industrialized countries of Taiwan, Malaysia, North Korea and Singapore, SMES
have powerful effects not only on industrial production strategies but also on the
export earnings: in fact SMES constitute the production wheels for the large scale
enterprises of these countries, and as pointed out by Adeleke (2002), SMES act as
instruments of accelerated economic growth and development. It is in the
realization of the importance of SMES in the economy, and in order to ensure
balance industrial development that the Federal Government of Nigeria has
decided to promote their development in domestic industrial activities. It is also to
position the sector for export earnings in a global economy.
Efforts at promoting small and medium scale enterprises in Nigeria
A number of new initiatives and measures have been taken at promoting the
growth of SMES in Nigeria. However, before identifying these measures, it is
necessary to define SMES.

Definition of small and medium scale enterprises

In the literature, small and medium scale enterprises are usually determined by
various quantitative parameters.
Such parameters include the number of people employed in the enterprises, the
capital investment outlay, the size of the plant capacity, the sophistication of the
equipment, sales turnover, profit margin and perhaps market share. Oshagbemi
(1983) and Owualah (2000).
In Nigeria, existing official definitions, such as the Federal Ministry of Industries,
Central Bank of Nigeria etc, emphasizes nominal financial outlay as the
operational indices for defining small and medium scale enterprises. The current
national definition of SMES in Nigeria as adopted at the National Council on
Industry (NCI) in 1996 and as cited by the Central Bank of Nigeria (CBN, 1997) is
to classify small scale enterprises as those with total cost, including working
capital but excluding cost of land above N1.0 million, but not exceeding N 40.0
million with a labour size of between 11 and 35 workers. Medium Scale
Enterprises are defined as those with total cost, including capital but excluding cost
of land above N40.0 million but not exceeding N150.0 million with a labour size
of between 36 and 100 workers.
In this study however, the use of qualitative criteria in defining small and medium
scale enterprises is preferred. This definitional preference is based on the
realization of the ever-changing quantitative economic indicators affecting money
both as a unit of account and as a store of value. These indicators include interest
rates, the level of prices and exchange rates. Against this background and
according to Koroma (1992) small and medium scale enterprises may be seen to
exhibit the following characteristics.
In Nigeria, existing official definitions, such as the Federal Ministry of Industries,
Central Bank of Nigeria etc, emphasize nominal financial outlay as the operational
indices for defining small and medium scale enterprises. The current national
definition of SMES in Nigeria as adopted at the National Council on Industry
(NCI) in 1996 and as cited by the Central Bank of Nigeria (CBN, 1997) is to
classify small scale enterprises as those with total cost, including working capital

but excluding cost of land above N1.0 million, but not exceeding N40.0 million
with a labour size of between 11 and 35 workers. Medium Scale Enterprises are
defined as those with total cost, including capital but excluding cost of land above
N40.0 million but not exceeding N150.0 million with a labour size of between 36
and 100 workers.
In this study however, the use of qualitative criteria in defining small and medium
scale enterprises is preferred. This definitional preference is based on the
realization of the ever- changing quantitative economic indicators affecting money
both as a unit of account and as a store of value. These indicators include interest
rates, the level of prices and exchange rates.
Against this background and according to Koroma (1992) small and medium
scale enterprises may be seen to exhibit the following characteristics:
i. May have only a relatively small share of the market within the sector;
ii. They are usually managed by the owners with the assistance of either other
members of the family or an establishment of less than one hundred
employees.
iii. They are not subsidiaries of a large parent company
iv. They are not quoted in the stock exchange
v. They normally source for the greater percentage
of their raw material contents locally.
The nature and types of Small and Medium Scale Enterprises are often considered
together because it may be difficult to draw a distinct line of demarcation between
the two. In this vein, SMES may be involved in the production of finished goods
and services, which are readily and directly consumed or utilizable by human
beings. They may engage in the production of raw materials, or semi- finished
product, which will require further processing before consumption or utilization.
The productions of these activities may be used locally or directed to export
markets. A number of new initiatives at promoting the growth of SMES subsector
are identified in Nigeria. These include:
The Establishment of National Economic Reconstruction and Fund
(NERFUND): This fund was established to give loans to small enterprises
that fulfilled certain conditions through the participating commercial,
merchant and development banks. The NERFUND by all intents and

purposes is to plug the finance gap in small scale enterprises development in

Nigeria. There is no doubt that if the programme of NERFUND is carefully
implemented, it is capable of launching Nigeria into the path of selfsustaining industrial growth.
Use of Monetary and Credit Policies: The most significant change in credit
policies in favour of SMES is the directive given to banks that they must
allocate 16% of their loans and advances in favour of SMES and that any
banks that default will be sanctioned. This directive seems to have produced
very encouraging results. Not only have the returns on small scale
enterprises improved significantly, there appears to have been a favourable
shift in the distribution of commercial banks loans and advances with the
ration of actual loans and advances of SMES subsector crossing the 20%
level.
Small Scale Enterprises Loan Facility: The small scale enterprises loan
facility is designed to boost the performance of SMES. Among others the
facility is aimed at providing an alternative and more flexible source of longterm funds for developing new SMES as well as rehabilitating the existing
ones. To qualify, the beneficiaries must contribute a minimum of 25% of the
projects
capital cost in equity or internally generated resources.
Fiscal Incentives: Various fiscal incentives consisting of tax holidays under
the pioneer industries scheme, accelerated depreciation, duty draw back
scheme, duty exemption and tariff protection for the domestic market are
directed essentially at industrial promotion of SMES.
The Role of the Bank of Industry (BOI): The NBCI was established with the
sole aim of assisting the SMES not only in granting them loan facilities but
also in Entrepreneurship Development Programme (EDP). The EDP was
founded on the recognition that mere fiscal policies and financial incentives
alone are not enough to accelerate the development of SMES, the operators
of the enterprises should be exposed to EDP. The objectives of EDP include
the creation of awareness for self development and utilization of skilled
people through the creation of employment generating industries.
Developing existing SMES and strengthening their operations by assisting
Nigerian entrepreneurs in obtaining financial, technical, and management
support so as to enhance the development of their business.
Second-Tier Securities Market (SSM): The second- Tier securities Market
was established as an avenue for SMES to raise long term funds

through equity financing instead of depending on borrowed funds. Certain

conditions are stipulated for SMES to benefits from this gesture.
In spite of all governments effort to nurture the SMES sector as well as to ensure
its growth and survival, the sector has still not been able to find its feet.
Consequently, the country is yet to derive significant benefits from the activities of
SMES due to so many problems while some of these problems are inherent others
are exogenous: The major problems confronting SMES in Nigeria include.
Financial Problems: It is a common knowledge that SMES in Nigeria find it
relatively difficult to obtain institutional credits from financial houses. As
explained by Osoba (1987) Innag and Ukpong (1993), financial institutions
classified applications for loans from small and medium scale enterprises as
high risks. They are accorded low priorities in the lending schemes
especially by the banking sector. The financial institutions also allege that
the owners of these enterprises are most often unable to provide required
collateral securities and are unable to cope with the high interest stipulated
by banks for their loans. Another problem is that government funds are
limited. In the face of competing needs for government resources, sufficient
funds are not always available with which to grant the loan required by small
and medium enterprises.
Lastly, owners of these enterprises are unable to raise funds in the capital
market either because they cannot fulfill the conditions, which to them are
rather costly, or because they are ignorant of the facilities provided by the
market. As a result of the foregoing, SMES in general and the SSEs in particular
find it difficult to expand their business operations.
Deficient Entrepreneurial Capacity: Many SME enterprises lack the required
technical, human and managerial expertise. Because of their limited financial
resources, they are most often unable to compete in hiring the services of highly
skilled personnel who can contribute significantly to their business operations.
In the past in Nigeria, individuals who started a new business often belonged to
social classes already in business and already gifted with sufficient resources
that would enable them to make a smooth start, overcome hurdles in the first
stages of development, and eventually expand. The groups of new entrepreneurs
these days however do not belong to social groups and classes already related to
business; they do not have the cultural and educational orientation to start a
business and they do not possess the pertinent material resources without which

no business can begin. The development and expansion of their business are
thus hampered considerable because:
G The new entrants have not been in contact before with the life and way of
thinking and mentality.
G The prospective owners have not been exposed to scientific ways of
organizing things.
G The budding entrepreneurs have not inherited technological skills and ways
of solving technical problem.
G People are generally being trained at schools and training centers to be
employed at a later, not to become self-employed entrepreneurs.

Inadequate Infrastructural Facilities: SMEs often are confronted with the

problem of inadequate infrastructural facilities. In Nigeria, there is irregular and
erratic electricity power supply and telephone services; inadequate supply of
pipe borne water, and poor health care delivery system. These problems are
compounded by absence of efficient public means of transportation. All these
lead to high cost of business operation, and constitute obstacle to the efficient
performance of SMEs.
High Cost of Machinery Equipment and Other Resources: SMEs also face the
problem of high
cost of machineries, equipment, materials and other resources. This results
from the fact that most of the facilities and materials being used in business
operations are usually imported at exorbitant costs far beyond the capability
of the small entrepreneurs. Most of them therefore have to make use of
inferior or second hand machineries, equipment and materials. Evidently, all
these conditions do hamper their operational efficiency.
Access to Research Facilities and Institutions: There is also lack of access to
research facilities and institutions that can assist them to fashion out modern
equipment, technology and more efficient ways of doing things.
High Mortality Rate: According to Oshagbemi (1983) a large number of
newly registered small-scale enterprises in Nigeria hardly survive the first
few years of operation .Thus apart from the problem of under capitalization,
high cost of materials and poor infrastructural facilities, there is the high rate

of business failure among small-scale entrepreneurs in Nigeria. This has

been ascribed to such factors as poor knowledge of project conceptualization
and implementation given the dearth of management and technical skills
among this group of people.
Advertising and Promotion: Most operators of SMES in Nigeria treat
advertising and promotion with levity and often ignore them as having
nothing to do with their business growth. As observed by Adeleke (2003),
SMES hardly realize that effective advertising and promotion make
prospective customers to develop strong opinions about and taste for their
products and services in particular and the firms in general. Promotion
enables a customer to have a repeat
purchase which leads to business.
Against the backdrop of those problems firms in Nigeria are unable to perform
significant role comparable to their counterparts of OECD countries (see table 1).
In countries like Ireland, Switzerland Portugal and Denmark for example, SMEs
provide almost 80 percent of the total employment, and contribute significantly to
the GDP of those countries.
Unfortunately an objectives assessment of the roles of companies in the Nigerian
economy, and in the global economy suffers from the quality of adequate
information to accurately do justice to the job. In any case, being beset by such
complex problems, there is no way the SMEs in Nigeria can be competitive in a
global market.

Concept and strategy of positioning

Generally, positioning is the act of designing an organizations offerings and image
so that they occupy a
meaningful and distinct competitive position in the target customers minds. Ries
and Trout (1982) observed that positioning takes place in prospects mind;
positioning is what one does to the mind of the prospect. The basic idea of
positioning is that the product occupies places in the minds of target customers to
the extent that the product is patronized any time the customer intends to make
purchases. Positioning include a superlative of some kind which will describe what
level the market places on the particular product and specifies also what group of

people have perspective for the product. Positioning has to do with the
determination of which market segment an organization intends to serve. Kotler
(1997) identities four roles of positioning strategies.
i. To search for and grab a new unoccupied position that is value by enough
customers.
ii. To strengthen the current position of the organizations products in the target
market.
iii. To reposition the organizations products in relation to the competitors
products.
iv. To develop a niche for the organizations products that will create customer
loyalty.
According to Ries and Trout (1982), in a competitive market various strategies
can be used to position a product these include:
Broad positioning: This is to determine whether the product should fall into a
niche, be a low- cost leader, or a product differentiation
Specific position: This could be based on certain quality or benefit that the
product confers on the user or consumer. These include ease of use, durability,
reliability, safety, convenience etc. For example Volvo car emphasizes safety
and durability. These are specific positioning strategy.
Value position: The value position basically the products perceived ranking of
high quality, high cost average quality, average cost high cost or low cost.
Psychological positioning: This is to use any element that will occupy a place in
the mind of the people. It could be cost, quality or an esthetic value terms.
Real positioning: This can include the specific product features, such as
quality/durability, safety etc. It can be by benefits, problems, and solutions
needed. It can be by specific usage benefit, or by user category.

Figure 1: Elements of Competitive Advantage. Sources: Day George and Robin

Wensley (1988)
Generally, positioning tend to answer the question of which market segment
company want to be known as the leader. This will require acquisition of
knowledge of the operation of the target market. Market knowledge involves an
identification of what customer want, what is the nature of competition in the
market and which market offers the best opportunities.
Effective positioning also requires self-knowledge, knowledge of the companys
capabilities, strength and weakness. Consequently the market knowledge and self
knowledge can be leveraged to achieve success in strategies product positioning.
Competitiveness in the context of this paper can be defined as the degree of which
a country can, under free and fair market conditions, produce goods and services
which meet the test of international market, while simultaneously maintaining and
expanding the real incomes of its people over the long term.
Aaker (1998) observed that competition is a struggle for the segment in a market
to satisfy the same or similar customer needs. A player in the segment can be
considered as competitors. A competitor outsells others by constantly monitoring
the changes in customer needs and attempt to meet those needs better than other

competitors. Thus for Nigerian SMEs products to be competitive in the global

market, those products must meet customer needs better than other competitors.
Elements of competitive advantages
The figure 1 amply shows that how to compete is not the only way to achieve
competitive advantage. The other three factors- basis of competition; where you
compete: whom you compete against- together form corpus for a sustainable
competitive advantage. The competitive challenge is to know the product- market
domain, the competitors, the organizations capabilities and the marketing strategy.
Day and Wensley (1988) while agreeing that there is no common meaning for the
term competitive advantage, pointed out a sequential determinism of the sourceposition- performance framework, as seen in figure 1.
The authors identify skills and resources as basis for positional advantage which
will lead to positive outcomes resulting in customer satisfaction, increased market
share and profitability.
The World Economic Forum (1995) identified the following factors and
conditions among others that can influence global competitiveness.
Development in the domestic economy: The domestic economy has to be
competitive. The more competition in the domestic economy, the more
productive the economy. The more productive the economy, the more
capability it will have to compete at the global market.
The openness of the economy: Openness to global markets and the
internationalization of economics play an increasing role in productivity and
competitiveness enhancement. The more open the economy to external
contribution the more competitive enhancement it will have.
Limited government intervention and control: competitiveness requires little
or no government intervention and control in the operation of the economy.
For effectiveness the determination of productive activities is based on the
market forces and the interplay of demand and supply. A well developed
internationally integrated financial sector in a country also enhances
international competitiveness.
Managerial capability: A skilled labour force, managerial ability, a level of
entrepreneurship and skill for integration and different business activities,
the technical ability, of labour, the quality of management and efficiency in
the use of labour all contribute to competitive enhancement in the global
market.

The discussion above suggests that to pursue a competitive strategy at the global
level, many coordinated activities have to take place. Nigerian firms and
government have a lot to learn from these activities.

Strategy for Global Market Positioning of Nigerian Firms

Globalization is a worldwide phenomenon, which is becoming increasingly
popular. However, it means different things to different people and different things
to the same people across time and space- globalization is about increasing
interconnectedness and interdependencies among the worlds regions, nations,
governments and of course business. It is the process through which an
increasingly free flow of ideas, people goods, services and capital leads to the
integration of economics and societies.
In its simplest form, globalization refers to the degree to which a companys
competitive position within that industry in one country is interdependent with that
in another country. And at the level of a specific country, globalization refers to the
extent of inter linkages between a countrys economy and the rest of the world. In
these industries, firms do not opera with a collection of individual markets, but a
series of linked market in which rivals compete against each other across the
markets.
What is the current position of Nigerian firms' products in the global market? In
defining global competitiveness, it is necessary to note that success in domestic
market does not automatically translate to success in international markets: success
in international markets requires adequate preparation at the domestic level, and
knowledge of the operation and situation at the international market. It is necessary
to mention that the Nigerian SMEs are yet to make significant impact in the global
marketing compared with their counterparts in the South Eastern Asian Countries.
The basic tenet of this paper is to provide some guideline for the Nigerian SMEs to
benefit from international market through re-positioning strategy.

Knowledge of the target market

Perhaps the most important strategy that can be used in re-positioning SMEs in
Nigeria is for them to identify the type of products they want to offer to the
international market. This means a determination of the type of products in which
they have distinctive competence to produce. This will require an analysis of the
strength and weakness of the enterprises. Having identified the type of products to
produce then the SMEs will determine what is required to produce them.

Technology acquisition and development

The role of technology as one of the prime moving forces of development has long
been recognized Schumpeter (1949) and Johnson (1971). In fact, acquisition of
technology constitutes to economic development, and the well positioning of
Nigerian SMEs. Technology acquisition means the whole body of the most
efficient technical and organizational knowledge and information available for the
production of goods and services together with the tools for achieving production.
This implies ready access to a technical knowledge for the production of goods and
services and control over such technical knowledge. With these capabilities, the
SMEs would be able to respond creatively through product design changes to
changes in market conditions using the acquired technology. Further development
of the technology would make transplantation and adaptation for use in diverse
fields of production possible. These stages, often referred to as domestication,
indigenization and diffusion stages will ensure that after the acquisition of the
technology, the country has control over the supply of the product or service. This
is the heart of economic development and re-positioning for global
competitiveness. For the SMEs, the concept of technology is therefore an
extremely dynamic one the ultimate goal being the offer of products according to
the market demand and in competitive conditions.
Various technological acquisition policies have been proposed in the literature.
The possession of technological capability with a local base is most often
identified as the secret behind industrial growth and development. SMEs could be
encouraged to acquire simple technology from various research institutes that
abound in the country.
CONCLUSION

The reality of global competition is a key factor in every business everywhere.

Clearly the challenge today for business enterprises is to formulate strategies that
will enable them survive in the new market forces created by the spread of global
competition. Faced with these challenges, it is necessary for Nigerian firms to
brace up for globalization move which has opened up international trade
liberalization. Nigerian firms should get over the marriage of problems confronting
the sector so as to ensure that their products remain competitive in the world
market. This calls for repositioning strategy, to develop new technology and obtain
the pertinent information about the operations of the international markets. A
strategic sector of the economy such as the Nigerian firms need to remain
competitive to justify its relevance in the economic development process of
Nigeria. This can only be achieved by confronting the challenges and realities of
contemporary globalization process.

Conclusion
Specifically, the paper exposes the most problematic factors for doing business in Nigeria; indeed
Sub-Sahara Africa, and reveals that access to financing, corruption, and inadequate infrastructure are seen
to be significant hindrances to doing business in Nigeria. We must continue to restructure and diversify
the Nigerian economy towards Agriculture, Solid minerals, Tourism, Music/Entertainment, & other
Services with a view to improving their value chain. It is important to develop a robust framework of
policies and institutions that will enable the private sector drive the economy. Nigeria also need to invest
massively in infrastructure, health, and education: especially science/ technical and vocational education.
Let the Nigerian government evolve a national communication mechanism/strategy to change the
negative perception about Nigeria to the outside world, encourage creativity by protecting intellectual
property rights, and deal with growing insecurity in the land. Above all, effective leadership will also be
required for us to drive through this new process. That way, we may be positioning Nigeria to play big
in the global economy this 21st century.

Recommendations
Competitiveness policy is very broad in scope and relates to almost every aspect of a nation's economic
life. It is therefore necessary that issues of economic growth and development be addressed at the
national level with the involvement of all the key stakeholders. With this in mind, the following policy
options are recommended:

Integrated Development Policy

An interactive industrial development strategy involving the full participation of the government, the
private sector, in consultation with other key stakeholders, should be adopted to drive Nigerias
economic development.

Public-Private Mechanisms
Public-private sector consultation in Nigeria is weak. In countries where there are sustainable national
public-private consultative mechanisms, such mechanisms have proved extremely useful in
improving the efficacy of public policy and investment decisions.

Macroeconomic Stability
Monetary, fiscal, investment and trade policies should be periodically assessed to ensure that they are
in line with the countrys development aspirations. The countrys monetary policy should ensure that
inflation is kept under control. The low value of the Naira against major international currencies
threatens not only the performance of industries, but the ability of existing enterprises (SMEs) to
compete. Exchange rate policy should be flexible enough to accommodate the needs of the industrial
sector at specific times. CBN should go beyond price stability, and pursue an effective and realistic
interest rate policy based on monetary conditions and certain targeted level of economic activities.

Finance And Credit Policy

Finance is a major constraint on economic development. It limits industrys ability to expand, acquire
new technologies, restructure and modify production processes and compete. The financial market in
Nigeria is getting stronger with the reforms in that sector. However, the success of the financial sector
reform should trickle down to the real sector and agriculture in particular.
Commercial banks and other financial institutions should be encouraged to grant soft (low interest)
loans to SMEs, especially those involved in the production of intermediate goods, spare parts and
components.

Fiscal Policy ( A National Tax Policy )

Transparency and consistency in fiscal policy would provide an environment in which industries can
organize production, plan future expansion without substantial losses in profits as a result of high
levels of taxation or double taxation.
It is simply uneconomic and unsustainable to run any economy outside of tax revenue. A national tax
policy is therefore urgent and necessary in Nigeria to reduce over-reliance on oil revenue for
development. The segment of our population (economy) in the informal sector is huge, and the aim of
this policy would be to bring all taxable citizens (both corporate and individuals) into the tax net. The
general tax contribution to the Rebased nominal GDP is 12%, and has dropped to 4% since after
rebasing. And this is the lowest in the world (NBS, 2013).

Human Resource Development Policy

To achieve the goal of a healthy labour force to drive the economy, we must invest in the health needs
of our people. Human resources development is important if competitiveness is to be achieved. The
focus should be on future industry- specific needs for each of the sectors/sub-sectors, but more
specifically for industries with the ability to compete in the global market. The government and the
private sector should promote and develop university-industry linkage for research and development,
skills development and innovation. In particular, the government should invest heavily on science and
technology education (including ICT and digital technologies) and other knowledge-based resources
for development and improved competitiveness.

Infrastructure Development Policy

The contribution of the deplorable state of infrastructure to the poor competitiveness status of the
Nigerian economy is widely acknowledged.

Electricity supply and cost are critical for competitiveness. The billions of cubic metres of gas we
flare annually can be channelled to meet our energy needs if properly harnessed. Effective energy
management measures should be introduced to ensure continuous electricity supply at lower cost. The
private sector should also promote the development and effective utilization of alternative sources of
energy for industrial use, e.g. solar, wind, nuclear to complement existing hydroelectric power
stations Anti-trust and Consumer Protection Policy
Theres need for anti-trust laws that guarantee fair competition in the economy. This is necessary to
promote healthy rivalry among firms in an industry, ensure continuous improvements in product
service and quality, as well as protect intellectual property and consumer rights.

Agricultural Development Policy (The GBB Scheme)

The present government has taken the initiative of moving agriculture towards the development
model beyond subsistent farming. The emphasis is now on modern commercial farming and
improving the value chain. As a part of this model, we need to establish agro-processing industries in
order to improve the value chain. Government should also institute a Government Buy-Back scheme
of agricultural products for preservation. This will help to stabilise the price of agricultural products,
encourage farmers to engage in year-round production, ensure food security and reduce waste of
agricultural produce every season.

References

Atkinson, R.D. (2013). What really is competitiveness Information Technology and

Innovation Journal, September, Vol. 6, No. 20, pp. 50 59.

Bakan, I. and Dogan, I.F. (2012). An Empirical Study on Competitiveness of Industries in

Kahramanmaras.
Journal of Management, KSU, Arsar.

Barney, S. (2007). The World Economy: Resources, Location, Trade and Development (5th ed.).
Upper Saddle River: Pearson Education Ltd.

Cohen, S.S. (1994). Speaking freely, Foreign Affairs Journal, Vol. 73. No. 4, pp. 194-197.

Dunn, M.H. (1994). Do Nations Compete Economically? Framework: Intereconomics,

Nov/Dec.

Ebong, F. and Udo, E. (2009), Industrial Development and Competitiveness in Nigeria: Patterns and Policies.

Journal of Economics, IMSU Owerri, pp. 47 57.

Ekpo, A.H., Ndebbio, J.E.U., Akpankpan, E.B. and Nyong, M.O. (2003), Macroeconomic Model
of the Nigerian Economy. Vantage Press, Ibadan.

Hollensen, S. (2007), Global Marketing; 4rd Ed. Harlow England: Pearson Education Limited.

Johansson, J.K.(2003), Global Marketing; 3rd Ed. Boston: McGrawHill-Irwin.

Krugman, P. (1979). Increasing Returns, Monopolistic Competition, and International Trade,

Journal of International Economics, Vol. 9, pp. 496 479.

---------------(1994). Competitiveness: A Dangerous Obsession Foreign Affairs Journal,

Mar/Apr. Vol 73, No. 2, pp. 28 64.

Li, F. (2012). Research on National Competitiveness through Brands Industry Distribution .

Journal of Economic Management, Chongquing Georges University, Chongquing.

Morgenstern, O. (1972). Critical points in Economic theory. Journal of Economic Literature,

Vol. 10, pp. 1163 1189.
Olaloku, F.A., Fajana, F.O., Tomori, S., and Ukpong, I.I. (1984); Structure of the Nigerian Economy;
London: Macmillan Press Ltd.
Onyemenam, C.E. (2004). Firm Level Competitiveness in Nigeria, Paper presented to ODINESG
Seminar,
City University, Northampton Square London. June 15 16.

Porter, M.E. (1985), Competitiveness Advantage of Nations, the Free Press Macmillan Inc.

---------------(1990), The Competitive Advantage of Nations; London: Macmillan Press Ltd.

Sinkiene, J. (2009). Empirical Study on City Competitiveness of Lithuania. Journal of

Management, Kaunas University of Technology, Kaunas.

Sun, H., Fan, Z., Zhou, Y., Shi, Y., (2010). Empirical Research on Competitiveness Factors Analysis of Real
Estate Industry of Beijing and Tianjin, Engineering, Construction and Architectural Management, 17(3), Ss.

240-251.

Thompson, E. R. (2004). National competitiveness: A question of cost conditions or institutional

circumstances? British Journal of Management, 15(3): 197218.

Tyson, L.D.A (1994). Trade conflicts in Hi-Tech Industries (Washington) Journal, Nov. / Dec. Vol.
22, No.
6, pp. 15 22.

UNIDO (2001), Tanzania: Sustainable Industrial Development and Competitiveness, UNIDO,

Vienna, August, 2001.

World Economic Forum, The Global Competitiveness Report 20092010, p.3

World Economic Forum (2012), Africas Competitiveness Report, World Economic Forum.

http://en.wikipedia.org/wiki/Competitiveness

http://www.weforum.org/issues/competitiveness

http://www.weforum.org/reports/global-competitiveness-report-2013-2014

http://www.theglobalist.com/really-competitiveness

http://www.worldbank.org/en/country/nigeria/overview

http://www.researchgate.net/publication/235251956_Empirical_research_on_competitiveness_factors_Analys
is_of_real_estate_industry_of_Beijing_and_Tianjin

www.nispa.org/files/conferences/2009/.../200904201457480.Sinkiene.d...

Link.springer.com/.../10.1007%2F978-3-...
www.emeralinsight.com/journals.htm?

REFERENCES

Aaker D (1998). Developing Business Strategies. New York, John Wiley sons Inc.
Adeleke A (2002). Investment Opportunities and Partnership. Development
Projects in the oil and Gas Industry of Nigeria. In Montanherio L. Berger and
Skomsay (ed) public and private sector partnerships exploring co operation
Sheffield. Shu Press.
Adeleke A (2003). Strengthening Small Scale Entrepreneurship through
Collaborative partnering projects in Nigeria. Int. J. Publicprivate partnership
Sheffield University. Central Bank of Nigeria. Annual Report and Statement of
Accounts Various Issues
Day GS, Wensley R (1988). Assessing Advantage: A Framework for Diagnosing
Competitive Superiority. J. Market. 52: 1 20.
Inang EE, Ukpong EE (1993). A Review of Small-Scale Enterprises Credit
Delivery Strategies in Nigeria Central Bank of Nigeria Occassional Paper 5,
Research Department March. Johnson HG (1971). Technology and Economic
Interdependence. London The Macmillian Press Ltd.
Koroma JS (1992). Types and Sources of SME Financing in Nigeria paper presented
at the First National Consultation on Strategies for Finnacing Small and Medium
Scale Enterprises in Nigeria. Sheraton Hotels and Towers, Abuja. 17-19 June.
Kotler P (1997). Marketing Management Analysis, Planning, Implementation and
Control. New Jersey Prentice Hall International Inc.
Oshagbemi TA (1983). Small Business Management in Nigeria London Longman.
Owualah S (2000). Entrepreneurship in small Business. Ikeja GMAG Investment
Ltd. Educational Publishers.
Ries A, Trout J (1982). Positioning: The Battle for your Mind. New York Warner
Books.
Schumpeter J (1949). Theory of Economic Development Cambridge Mass Harvard
University Press.

World Economic Forum (1995). The World Competitiveness Report Geneva.

Global Marketing Performance
Thanks to accelerating globalization trends, intensifying competition and
increasing market integration, global marketing has become one of the fastestgrowing areas of world economic activity. Global marketing is the first step in a
firms internationalization process and as such, it requires fewer resources,
involves less risk and has greater flexibility compared with other more advanced
foreign market entry modes, such as wholly owned foreign production.
Although it offers numerous benefits to the firm, including capacity utilization,
wider market scope and growth opportunities, the continuation or abandonment of
export business operations largely depends on how satisfactory its performance is
in international markets. This has given rise to a growing body of research that
focuses on understanding the drivers, moderators and outcomes of the firms
strategic export behavior and its ultimate impact on export performance. These
issues provide the central theme for a collection of five articles published in the
Journal of International Marketing over the last three years.
In National Export Promotion Programs as Drivers of Organizational Resources
and Capabilities: Effects on Strategy, Competitive Advantage, and Performance,
published in 2011, Daydanda Palihawadana, Marios Theodosiou and I stress the
role of possessing specific resourcesmanagerial, production/R&D or intellectual,
for exampleand specific capabilities, such as business identification, relationship
building or innovation, when building a sound export marketing strategy, paying
particular attention to product, price, distribution and promotion. Our research also
underscores the instrumental role of government assistance programs, particularly
those relating to export information and trade mobility, in providing an external
boost to each of a firms export-related resources and capabilities. In fact, this
boost becomes stronger in the case of smaller firms, which have limited resources
and skills, as well as among exporters with limited experience in international
activities (thus little foreign market knowledge and few business contacts). In
addition, we demonstrate that the proper implementation of a firms export
marketing strategy leads to multiple competitive advantages, hinging on product
differentiation, cost reduction and service quality dimensions, which have
favorable effects on both the firms market performance and its financial
performance in foreign markets. Inevitably, firms with high export market
performance are destined to enjoy enhanced export financial performance
outcomes.

Among strategic resources, the lack of innovativeness has been regarded as a

serious obstacle in a firms export development process because engaging in export
activities per se often has been described as an innovative process. This issue was
the focus of attention in Firm Innovativeness and Export Performance:
Environmental, Networking, and Structural Contingencies, published in 2013.
Authors Nathaniel Boso, Vicky M. Story, John W. Cadogan, Milean Micevski and
Selma Kadi-Maglajli examine the moderating role of both environmental and
organizational factors to demonstrate that the relationship between innovativeness
and export performance is not linear. The authors suggest that intense competition
and dynamic forces (and, thus, uncertain customer needs and preferences) in
foreign marketplaces require relatively high levels of innovativeness by the firm to
achieve superior export performance. From an internal organization perspective,
the positive effect of innovativeness on export performance is amplified when the
exporting firm has, (a.) a stronger capability in building personal connections, ties
and networks with various parties in the foreign market, such as suppliers, buyers
and competitors; and, (b.) an export organization characterized by an informal,
decentralized, organic structure, as opposed to a mechanistic, more centralized,
more formal structure.
An important, but often neglected, strategic area of exporting is pricing in foreign
markets. As demonstrated in Competitive Global Market Pricing: The Influence
of the Information Context, by Calude Obadia and published in 2013, the
manipulation of export prices is greatly influenced by the level of competitive
intensity. Under conditions of foreign market ambiguity, where the quality of
information received is deficient, exporters tend to manipulate various price
dimensions, such as volume discounts, credit terms and special prices for new
products, because operating in unfamiliar and complex foreign business
environments initiates a sense-making process that pushes a firm to change its
current behavior. However, under conditions of high information asymmetry,
where the exporter lacks information regarding the activities of his or her import
customers, such manipulations of price can seriously damage export performance
because the possession of limited information will impede the firms sense-making
process and make export pricing policies relatively ineffective.
Another critical, but debatable, dimension of global marketing is promotion
strategy adaptation (or standardization) in foreign markets. Using a strategic fit
approach, authors Magnus Hultman, Constantine S. Katsikeas and Matthew
Robson demonstrate that an adapted perspective on export promotional activities
positively affects performance only in the case of firms with low international
experience in terms of both duration and intensity. In Export Promotion Strategy

and Performance: The Role of International Experience, published in 2011, the

authors indicate that, on one hand, as a firm gains more experience over time, it is
in a better position to understand local customer preferences and appreciate the
aspects of a promotional program that can be standardized in a more cost-efficient
way. On the other hand, greater intensity in export operations implies a wider,
more in-depth knowledge of foreign markets, which encourages formalization
through the adoption of more standardized promotional efforts. Notably, another
dimension of international experience, the scope of exporting, was not found to
have any moderating effect on the promotion/adaptation performance link.
However, feedback from managers indicates that the wider the scope of exporting,
the higher the possibility of becoming experienced and familiar with customer
preferences in culturally distant countries, which, in turn, may facilitate export
promotion standardization.
Finally, in Antecedents and Consequences of an Eco-friendly Export Marketing
Strategy: The Moderating Role of Foreign Public Concern and Competitive
Intensity, published in 2013, Constantine S. Katsikeas, Thomas A. Fotiadis, Paul
Christodoulides highlights a contemporary, but often underestimated, strategic
exporting issue: acting in an eco-friendly way in international markets. This is
particularly important nowadays where there is a growing concern regarding
ecological issues in many parts of the world, not only by governments, but also by
many business organizations, eco-conscious consumer segments and the general
public. Our research shows that being environmentally sensitive in all elements of
an export marketing program is essential to harnessing the exporting firms
financial performance, particularly in foreign markets characterized by high
competitive intensity and strong environmental concerns. Adopting an eco-friendly
marketing strategy seems to be of greater necessity when selling industrial goods
rather than consumer goods, or when operating in developed rather than
developing countries. Designing and implementing such a strategy is not an easy
task. It needs to be continuously supported and sustained by adequate physical,
financial and experiential resources, as well as by appropriate organizational
capabilities, such as the existence of a shared vision among company employees,
effective cross-functional coordination and the use of relevant technologies.
A number of observations can be made regarding the content of this collection of
articles:
1. A firms global marketing performance is affected, directly or indirectly, by
numerous strategic factors, ranging from the firms organizational resources,

capabilities and marketing mix elements to more specialized factors such as

innovativeness and eco-friendliness.
2. Global marketing performance is a multidimensional concept, expressed in
many different ways, that needs to be carefully conceived, operationalized and
measured to yield accurate results.
3. The relationship between global marketing performance and its antecedents is
not straightforward. Instead, it is contingent on various external forces, such as
foreign competitive intensity, and internal forces, such as organizational structure.
4. The various phenomena relating to global marketing performance can be
explained from different, but complementary, theoretical perspectives, such as a
resource-based view, industrial organization theory or contingency theory, which
have significantly enriched knowledge of the process and dynamic aspects of firm
performance in foreign markets.
5. To achieve superior performance in international markets, both corporate and
public policymakers need to take more drastic action toward rethinking their export
policies and strategies based on fresh insights derived from recent academic
research.

Valarie Zeithaml picked up where Kotler left off stressing the value in
understanding the history of marketing and not just the research from the last ten
years. She recounted teaching a marketing theory course and sharing seminal
works with PhD students. In some cases new research is being repeated not to test
long-standng theory, but because emerging scholars are not aware that the theories
have already been developed. David Reibstein offered some forward thinking
insights as to how marketing may be studied and the practical implications of great
research, but a highlight of his presentation was a video of Wharton faculty sharing
why they found marketing to be so fascinating.