Effect of Differentiation Strategy on the Performance of Bakeries in Yola, Adamawa State Nigeria
Keywords:
Differentiation Strategy, Firm Performance, Competitive Strategy, Porter’s Generic StrategyAbstract
This paper examined the effect of differentiation strategy on the performance of Bakeries in Yola, Adamawa State Nigeria. The study was anchored on Porter’s Generic Strategies. A face-to-face questionnaire with 25 structured questions was used to collect data from 25 bakeries in Yola selected based on the use of modern technology in operation. The study adopted descriptive survey research design, through a cross-sectional study type. Multiple linear regression analysis was used to test the formulated based on the constructs in the study. The study confirms the results of the previous studies on positive relationship between differentiation strategy and firm performance. The study adds new knowledge to the literature on strategies adopted by bakeries in a developing country context. The study concluded that bakeries interested in enhancing their performance and staying ahead of competition should pursue differentiation strategy. The study therefore recommended that manufacturing companies especially food processing companies should pursue differentiation strategy so as to outperform their competitors and increase their profitability.