Abstract
M.Com. (Business Management)
South Africa has for a long time been considered as the gateway into Africa. With the
potential Nigeria is showing, it appears that the privilege of this opportunity may soon be
diminishing.
Nigeria is considered an exciting emerging market because it provides investors with a
ready and established market not only because of the huge population size, but also
because oil and other natural resources in Nigeria remain critical resources that are a
compelling drawcard for foreign investors. It is no coincidence that Nigeria has attracted
the most foreign direct investment in Africa, amounting to US$8.9 billion (Ernst & Young,
2012).
In undertaking global strategies for global expansion, multinational organisations need to
have a firm understanding of the macro, market and micro environment in which they will
be entering and operating. These multinationals also need to plan how they will adapt
their home country strategy to their host country strategy. Market challenges and
positioning the firm in an emerging market are key aspects that need to be investigated,
understood and to a certain extent, perfected.
The research question posed in this paper addressed the inherent challenges posed to
multinational service firms, in particular Ernst & Young (EY), when conducting business
operations in Nigeria. The research adopted a qualitative research methodology which
allowed the collection of the opinions of senior executives in EY, both in South Africa and
in Nigeria, as well as clients of EY in Nigeria. The data collection method employed
included digital-recorded in-depth interviews after which the data was analysed through
content analysis and from which codes and categories were extracted.
The research results pointed to pertinent macro, market and micro challenges facing a
professional services firm such as, but not limited to infrastructure support, bureaucracy
and the importance of relationships.
This case study research provides key information about potential challenges and
opportunities facing a professional services firm and links these challenges and
opportunities of Nigeria’s macro, market and micro environment with strategic marketing
concepts, in particular positioning strategies that an organisation can implement when
attempting to position the business for market growth.