Effects of Differentiation and Cost Leadership Strategies on Organizational Performance: Evidence from Spirits and Wine Manufacturers in Ogun State, Nigeria

This study investigates the impact of differentiation and cost leadership strategies on the organizational performance of spirits and wine manufacturing firms in Ogun State, Nigeria. Drawing on Porter’s generic strategies framework, the research aims to evaluate how the adoption of these competitive strategies influences firm performance in a rapidly evolving and competitive local market. A cross-sectional survey design was employed, and data were collected from 60 senior managers and chief executive officers using structured questionnaires, with a final valid response rate of 90% (54 responses). The analysis revealed that both differentiation and cost leadership strategies have a significant positive effect on organizational performance. However, differentiation strategy showed a stronger predictive influence on performance outcomes compared to cost leadership. These findings align with previous studies suggesting that firms that prioritize unique value creation are better positioned for superior performance. The study contributes to strategic management literature by providing context-specific insights into how competitive strategies drive performance in the Nigerian manufacturing sector. Limitations include reliance on subjective performance measures and geographical scope limited to Ogun State. Future research is recommended to include focus strategy and extend the geographical coverage to enhance generalizability.