LINKING DIVERSIFICATION STRATEGY AND PERFORMANCE OF SELECTED FAST MOVING CONSUMER GOODS (FMCGs) IN NIGERIA

Abstract

This study investigated linking diversification strategies and performance of selected Fast Moving Consumer Goods (FMCGs) in Nigeria. Specifically, it assessed how related, unrelated, and mixed diversification strategies impact performance of selected FMCGs in FCT-Abuja, Nigeria. Primary data were gathered through well-structured questionnaires, complemented by secondary data sourced from published annual reports. The research employed convenience sampling, selecting 125 participants from ten (10) selected FMCGs. Both descriptive and inferential statistical tools were utilized to analyse the questionnaire responses and test the formulated hypotheses, revealing a significant positive relationship between diversification strategy and organizational performance. The result also showed that related, unrelated, and mixed diversification showed a significant positive relationship with FMCGs performance in Nigeria. The study recommends continuous monitoring and evaluation of financial metrics and industry trends to identify opportunities. It emphasizes the importance of adapting to changes in the dynamic business environment and suggests that companies should strategically balance related, unrelated, and hybrid diversification strategies according to their capabilities to achieve enhanced performance.