EFFECT OF MARKET DEVELOPMENT AND PRODUCT DIVERSIFACTION STRATEGIES ON PERFORMANCE OF MEDIUM ENTERPRISES IN NORTH CENTRAL NIGERIA

Abstract

This study examined the impact of market expansion and product diversification on the performance of medium-sized businesses in North Central Nigeria. The study utilised primary data from a sample of three hundred eighty four (384) respondents from the selected medium enterprises who are managers or proprietors. The collected data were analyzed using multiple linear regression. Using the probability value of regression estimates, the study hypotheses were examined.. The result of the study shows that Market development (MDVP) has a positive impact on the performance of Medium Enterprises (PFRM) in North Central Nigeria, and the effect is statistically significant (p<0.05) and consistent with a priori expectations. Product diversification (PDIV) has a negative effect on the performance of Medium Enterprises (PFRM) in North Central Nigeria and the effect is not statistically significant (p>0.05) and also not in line with a priori expectation. It was concluded that developing new markets and expanding product lines are two of the most prevalent company expansion tactics that organisations employ. It was recommended among others that before embarking on product diversification, thorough market research is essential. This involves analyzing customer needs, preferences, and purchasing behaviors in the target market segments.