THE ROLE OF EXPANSION STRATEGIES IN THE GROWTH OF MTN NIGERIA, A CASE STUDY OF MTN NIGERIA, DAMATURU BRANCH, YOBE STATE
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Abstract
Although the mainstream of the investigations that study expansion strategies focus on expansion strategies from the standpoint of theoretical formulation and growth as per external and internal, little attention has been paid to the growth from perspective of the point of implementing organizational strategies formulated especially within the telecommunication industry like MTN. Therefore, this research aims to examine the extent at which expansion strategies affects the growth of MTN; ascertain the challenges faced in the implementation of the expansion strategies by MTN and examine the relationship between expansion strategies and the growth of MTN. This is achieved by using descriptive research design in order to generalize the findings to a larger population and it is more precise and accurate since it involves description of events in a carefully planned way. A stratified random sampling is used in the study as 123 staff of MTN in Damaturu, Yobe state across four MTN offices collected questionnaires, while 120 was retrieved. The study finds with strong evidence that expansion strategies has a positive effect on the growth of MTN. Regression Analysis of Variance (ANOVA) table showed F-value of 4.196 and P<0.05, and it implies that the regression is significant statistically, the extent at which Growth is dependent on Expansion Strategies is significant. Also, the study finds that the relationship between concentration strategies, integration strategies and diversification; and growth of mtn is significant with 0.82, 0.78 and 0.87 (p<0.05). The study also finds that the inability to understand the peculiarities of a new market, such as the demographic, cultural, and economic factors that may affect the success of the expansion, funding and financial allocation, and setting up subsidiary and legal compliance could be very challenging in the course of strategizing for growth. The study recommends that MTN should develop their products to meet the needs of the target market, allocate finances appropriately for priorities and also intimate staff on legal compliance and deliberate implementation of strategies for sustainable growth of the organization.
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