KOGI STATE

Faculty of Management Sciences

Journal of MANAGEMENT

ISSN: 3212 - 3122

Boniface, M. O. & Meruo, Emmanuel Okeoma

Abstract

This work determined the effect of low cost strategy on the market advantage of selected Small and Medium Scale Enterprises (SMEs) in Abia and Imo States, Nigeria. The study adopted a causal survey research design. Primary data was used which was sourced through five-point Likert scale questionnaire administered to the respondents. Simple regression model was used to test the hypothesis designed for the study. The low cost strategies adopted by the SMEs in the study area were out-sourcing, supply chain management, subcontracting, and collaboration strategies. The study revealed that these strategies significantly and positively affected the market advantage of the SMEs that were studied. The study therefore recommended the adoption of these cost leadership competitive strategies by selected SMEs in the study area.

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Keywords

Cost leadership, Penetration pricing, Out-Sourcing and Market Advantage

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