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Cost Leadership Strategy and Firm Competitiveness in Nigeria

Nwabuatu, Emmanuel Nnajiubah PhD

Abstract

In an increasingly competitive and volatile business environment, Nigerian firms face significant pressures to maintain and enhance their competitive positioning. This paper examines the relationship between cost leadership strategy adoption and competitive performance among Nigerian enterprises. Through an integrated analysis of theoretical frameworks and contextual factors specific to Nigeria's economic landscape, the study identifies how effective cost management, operational efficiency, and strategic pricing contribute to sustained competitive advantage. The paper further explores the particular challenges and opportunities for cost leadership implementation in the Nigerian context, including infrastructure deficiencies, currency fluctuations, and human capital development. The findings suggest that while cost leadership remains a viable strategy for Nigerian firms, its effectiveness is significantly moderated by organizational capabilities, supply chain sophistication, and market positioning. The paper concludes with actionable recommendations for managers and policymakers seeking to enhance firm competitiveness through strategic cost management.

Keywords

Cost leadershipcompetitive advantageNigeriaoperational efficiencybusiness

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