DIFFERENTIATION STRATEGIES AND ITS EFFECTS ON ORGANISATIONAL PERFORMANCE: A STUDY OF SELECTED HEALTHCARE FIRMS IN LAGOS STATE, NIGERIA

Olufemi Olabode OLAYEMI; Patrick Sunday OKONJI; Damilola Omowunmi AKINSANYA; Joseph Monsuru OGUNLEYE

Olufemi Olabode OLAYEMI Department of Business Administration, University of Lagos
Patrick Sunday OKONJI Department of Business Administration, University of Lagos
Damilola Omowunmi AKINSANYA Department of Business Administration, University of Lagos
Joseph Monsuru OGUNLEYE Department of Business Administration, University of Lagos

Keywords: Differentiation, Organisational-performance, Customer-loyalty, Competition, Strategy

Abstract

Effective strategies are more vital than ever in today's rapidly evolving global landscape with heightened competition and demanding clientele. This study examined how differentiation strategies affect the performance of a healthcare firm, making a valuable contribution to the field of strategic development. It focused on differentiation strategies as deployed by health companies. Non-probability purposive sampling was employed, targeting customers of the Healthcare firm who were deemed capable of providing meaningful responses regarding the relationship between adopted differentiation strategies and organisational performance. The findings revealed a low level of consistency among the four key constructs: differentiation strategy (0.797), organisational performance (0.862), customer loyalty (0.836), and customer patronage (0.831). While differentiation strategies strongly impact organisational performance, they do not appear to be the primary driver of customer loyalty and patronage within the Healthcare firm. The study recommends that organisations delve into customer insights to identify the factors that foster customer loyalty and patronage.