June 2025 Edition

COMPETITIVE STRATEGY AND PERFORMANCE OF AVIATION AIRLINE IN NIGERIA: A STUDY OF DANA DOMESTIC AIRLINE

IWUOZOR, Odili Markanthony Ph.D, Ayasal, Anthony Auya Ph.D &Ekaette, Glory Edem Ph.D.

Abstract

This study examined competitive strategy and performance of domestic airlines in Nigeria: a study of Dana Airline. Utilizing a survey research design, the population of the study consists of 580 staff of Dana Airline; data were collected through structured questionnaires distributed to 237 employees, with 223 valid responses, yielding a 94.1% response rate. Descriptive statistics summarized respondents' demographics, while multiple regression analysis was employed to test the study’s hypotheses. The results revealed a strong positive relationship between the three strategic dimensions and organizational performance, with an R value of 0.734 and R² of 0.539, indicating that 53.9% of the variance in performance is explained by the combined effect of the strategies. All predictors: cost leadership differentiation and market focus were statistically significant, confirming their positive contributions. The study rejected all null hypotheses, affirming that each strategy has a significant effect on Dana Airline’s performance. Cost leadership emerged as the most influential strategy, suggesting that minimizing operational costs enhances efficiency and competitiveness. Differentiation and market focus strategies also proved vital in fostering innovation, customer loyalty, and responsiveness to niche markets. The study recommends continued investment in cost-efficient practices, technological innovation, and market segmentation to bolster competitive advantage and organizational growth within the Nigerian airline industry.

Keywords

Competitive Strategies, Cost Leadership, Differentiation, Market Focus, Organizational Performance

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