TABLE OF CONTENTS
1.1 Background of the Study
1.2 Statement of Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope and Limitation of the Study
1.8 Definition of Terms
2.2 Meaning of Retailing
2.2.1 Retail Challenges
2. 3 Vertical Retailing
2.3.1 Drivers of Vertical
2.3.2 Transaction Cost Theory of
2.3.3 Empirical Research of
Transaction Cost Theory.
2.3.4 Transaction Cost Motivation
in the Empirical Research
2.3.5 Human Assets.
2.3.6 Brand Name Capital.
2.3.7 Opportunism and Trust.
2.4 Model of Retailing (Theoretical Review)
2.4.1 Matrix Computational Approach
2.4.2 Porter’s Five Forces Analysis.
2.4.3 main Aspects of Porter’s Five Forces Analysis
2.5 Organizational Performance
2.5.1 Theoretical Review of Retailing and
2.6 Challenge Costs and Benefits of Retailing.
2.6.1 Cost of Retailing
2.6.2 Benefits of Retailing.
2.7 Benefits of Strategic Management to
Barriers to Sucessful Implemtnation of
2.9 The Role of Organization in Industries
The Strategic Planner, the Duties and
the Strategic Management Development
2.11 An Overview of the Case Study (Cadbury Nigeria Plc)
3.1 Research Design
3.2. Restatement of Research Questions and Hypothesis.
3.2.1 Research Questions
3.2.2 Research Hypothesis
of the Study Population.
Design and Procedure
of Data Collection Instrument
3.10 Limitation of Methodology
DATA PRESENTATION AND ANALYSIS
4.2 Analysis and Interpretation of Data
4.3 Testing of Hypotheses and Interpretation
4.4 Discussion of Tested Hypotheses
1.1 BACKGROUND OF THE STUDY
is the set of activities that markets products or services to the final
consumers for their personal or household use. Businesses used retailing
strategies to increase market share and profit and thus enhance firm’s
performance. Vertical retailing is very common among larger businesses interested
in growing their event further. Vertical strategy occur when business expand
into new areas connected with its business processes.
strategies exist for each types of retailing designed to increase profits for
the company. Market expansion occurs when businesses attempt to expand into
area that increase their market share but not necessarily in different areas or
even the same products.
strategy is a vertical strategy where businesses either enter industries in the
supply chain ahead of them. In otherword, vertical retailing strategy is a
means of guaranting distribution channels for products and services by building
relationship with or taking control of distribution.
The intense competition in the market and changing customer
preferences has made the retailers’ job difficult and
challenging. It was observed that many retail outlets were opened and some of
them were closed. This scenario has attracted the attention of many researchers
to find solution for the same. During interaction with the organized NLR the
need was identified to understand the retail challenges, and organizational
this paper an attempt has been made to identify the retail challenges and their
effect on organizational performance. The remainder of the paper focuses on
these issues. The first section focuses on literature survey on retail
challenges. The second section focuses on the organizational performance. The
third section focuses on research methodology to design and execute research
for the same. In the last section the paper ends with discussion, limitation
and space for future research. The technique of factor analysis has been
applied to classify factors for retail challenges and technique of structural
equation modeling has been applied to test hypotheses.
save money by selling products they creates and free the supplier from the
threat or influence of major buyer. Firms tend to add new product to their
portfolio as they acquire new knowledge and integrate it with their existing
knowledge base particularly in highly dynamic industries. The new knowledge
often builds upon the existing knowledge, allowing for improvement in existing
products such as high quality and ability to safety consumer’s needs. As a
result, this process of knowledge creation and retailing often improves the success of related
products in the portfolio. The mix of different knowledge stocks enriches the
firm’s capability to offer a greater variety of related products. In so doing,
the firm can better satisfy customers’ needs in a manner superior to
competitor’s product offerings.
the other hand, the manufacturing industry remain one of the most critical
engines for Economics growth and its performance as a catalyst to transform
slow growing and low-value activities to more productive activities that enjoy
greater margins and have higher growth prospects but its potential benefits are
even greater in present time with rapid technological change and for reaching
liberalization and bridge income gap with the industrialized world. (Mike,
vertical retailing implies that fortunes
of a business unit are least partly tied to the ability of its in-house
supplier or customer (who might be its distribution channel) to complete
successfully. Technological changes, changes in product design involving
components strategic failures or managerial problems can create a situation in
which the in-house supplier is providing a high cost, inferior or inappropriate
products and services. Essentially, there are two types of vertical retailing
retailing strategy exists when firms develop its own sources of raw materials.
It occurs when a firm develops into activities which are concerned with the
inputs into its current business. (Oyedijo Ade, 2004).
strategy on the other hand occurs, when a firm is disposing off its own output
by gaining ownership or increase control over distributors or retailers.
number of manufacturers today is pursuing a retailing strategy by establishing web site, distribution outlet
e.t.c. to sell their products directly to consumers. Thus, retailing strategy
is an issue that concern with the company outputs i.e. the firm goes further
retailing in the value chain by creating and providing its own distribution
outlets, transportation system, repairs and servicing.
is argued that increased vertical retailing has resulted in lowering prices of
both the unmerged input suppliers and the vertically integrated firm
(McAfee1999). Theoretically, literature contends that vertical retailing or
coordination will create efficiencies by reducing the transaction costs
associated with market exchange. (William Son, 1974). Other most commonly
argued benefits of vertical retailing
include the reduction of risk, improves supply chain, coordination,
captures upstream and downstream profit margins, the ability of integrated firm
to innovate and differentiate, it enhances steady near capacity production
operation through the creation of ones own dependable channels for pushing
product to the end –users, increased efficiency in the exchanged of information
and organizational structures and improved market positions of the integrated
the main purpose of this study is to empirically examine the effect of vertical
retailing on the performance of integrated firms more specifically; we examine
the impact of retailing strategy on the performance of Cadbury Nigeria Plc.
problems and difficulties are common to all industrial sectors, manufacturing
industrial sectors have no immunity. This research work is carried out with the
objective to provide solution to problems facing manufacturing industries:
problem ranges from inadequacy of vertical retailing planning.
of gaining control over distributors,
availability of qualified and competent distributors
form of machineries that is put in place to implement retailing strategy,
of enough capital and human resources needed to manage the business.
cost of market transactions and administration activities within an
of stable production desire to gain competitive relative
cost advantage over rivals through the use of retailing strategy and the
enhancement of selling prices to the end users in which the organization can
increase the predictability of demand for its outputs through retailing
OF THE STUDY
evaluate the effect of retail strategy on organizational performance
determine how retail strategy affects the attainment of organization goals
examine the extent in which organization’s retail outlets has increase market
evaluate the effect of an organization servicing department on productivity
know the effect of lower selling prices to end users on the profitability of
organization’s retail outlets increases market share?
what extent has servicing department of an organization contributed to
the adoption of retailing strategy helps in the attainment of organization
retailing strategy increase the profitability rate of organizational
organizational control of sales have any effect on organizational
is no significant relationship between organization retail outlets and market
There is significant relationship
between organization retail outlet and market share.
is no relationship between servicing department of an organizational
performance and productivity.
is relationship between servicing department of an organizational performance
is no correlation between retailing strategy and the attainment of organizational
is correlation between retailing strategy and the attainment of organizational
OF THE STUDY
strategy as a general strategy helps to position a company to sustain a
competitive hedge over its rivals. In many industries, independent sales agent,
wholesalers and retailers handled competing brands of the same product having
no allegiance to any one company’s brand they tend to push whatever sells and
earns them the biggest profits a manufacturer can be frustrated in his attempt
to win higher sales and market share or maintain steady, near- capacity
production, if it must distribute its products through distributors and/ or
retailers who are only half heartedly committed to promoting and marketing its
brand as proposed to those of rivals. In such cases, it is advantageous to a
manufacturer to integrate retailing into wholesaling or retailing via company
own distributorship or chain of retail stores.
important relevance of retailing is franking, where the franchisor grants to
its franchises the right to use the franchisors name, reputation and business
skills at a particular location or area. This helps to lessen the financial
burden of swift expansion and so permit rapid growth of the company and help
reap the advantages of large scale advertising as well as economics of scale,
management and distribution. Business can expand rapidly by franchising because
costs and opportunities are spread among many individuals.
AND LIMITATION OF THE STUDY
scope of this research work shall be restricted to Cadbury Nigeria Plc. The
research work focus on retailing strategy as a tool to achieving lower selling
prices to the end users. However, the study was limited by the following:
This is refers to as the ideas, plans that firm employed to compete
successfully against rivals.
This is the transformation of raw materials into finished goods.
It is refers to the end result of activity.
This is the process of combining two or more things in order to work together.
This is the money someone made in business after paying the costs involved.
Is the rate at which a worker or company produces goods and amount produced,
compared with how much time and money is needed to produce them.
A person or organization that compete against others especially in business.
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