CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The application of Computers or simply information technology has revolutionalized the way organizations are managed. Further more, they have changed production systems and processes in so many corporate establishments. Over the past ten years for instance, our economy had witnessed phenomenal changes hitherto un-experienced in our history. Business complexity and competition have reached unprecedented heights.
Think of what is happening in the banking sector for instance. When the Central Bank of Nigeria liquidity squeeze on banks became a major threat to survival, banking as a service took new face. Armchair banking gave way to more aggressive banking services. Gone were the days of “tally numbers” These days, bank transactions and operations are being done with dispatch and with the application of information technology and networkings (Banjoko S., 2002).The same can be said of other sectors of the economy. Consequential to the outbreak of information technology and globalize competition, corporate organizations in Nigeria have embraced information technology including the prospects and challenges it offers.
Nigeria with its large population offers very large market for marketing of computer products, especially now that awareness are gradually being created about the immense benefits derivable through the adoption of computerized system. Irrespective of the fact that much awareness is being created especially in recent times, Nigeria is still at the low ebb in adopting computer systems. So many reasons can be adduced to this. This includes the fact that so many Nigerians are still computer illiterate, especially among the older age groups. Furthermore there is increase in poverty level among Nigerian as a result of high level of unemployment and joblessness. So many Nigerians cannot feed themselves not to talk of owning a computer system. Consequently, the benefits that the introduction of computer technology offers to the advanced societies are not fully exploited in Nigeria. So many individuals and organizations are still in the dark about the immense benefits derivable through the adoption of computer system in their work processes. Consequently marketing of computer products are facing much challenges irrespective of the fact that greater awareness in being created about the importance of computers.
It is in the face of these challenges that the researcher saw the need to carry out this study titled “The Problems and Prospects of marketing computer products in Nigeria, - A case study of selected three companies” The companies that are to be used as case studies include Beta Computers, Leo Computers and Omatek Computers all located in Lagos.
BETA COMPUTERS Limited, incorporated in February, 1989, is an Information Technology Solutions Company that is very active, strong and reputable in the following areas:
i. AUTO-ID
ii. POS and ACCOUNTING
iii.ENTERPRISE RESOURCE PLANNING(ERP)
iv. SALES AND LOGISTICS AUTOMATION
v. NETWORKS- WLAN,LAN,WAN, IP & INTERNET ,ETC
vi. IT AND INTERNET SECURITY
vii. VIRTUAL PRIVATE NETWORKs (VPN)
viii. VERY SMALL APERTURE TERMINALS(VSAT)
ix. VIRTUALIZATIONS
x. REMOTE ACCESS CONNECTIVITY
xi. IP TELEPHONY and MESSAGING
xii. INFRASTRUCTURE AND SYSTEMS INTEGRATION
BETA COMPUTERS Limited is Partners to the world's leading brands such as HP, IBM, DELL, ACER, CISCO, INTEL, MICROSOFT and SAGE. They are Original Equipment Manufacturer (OEM) of SPEEDSTAR range of personal computers accredited by the Federal Government of Nigeria for purchase by all her Ministries, Departments and Agencies.
They are Industry Specific IT Solutions provider to varied industries including Industrial, Educational, Distribution, manufacturing and hospitality for all sizes of organizations including Micros and large corporate requiring ERP solutions. They design and implement business critical solutions using Industry leading technologies that deliver efficiency and profitability values to their clients.
They working with their clients provide end-to-end solutions in all the above areas and are adequately equipped to design, supply, install, integrate, implement and support ICT solutions from Industry leading brand names that they have partnered with.
They don't back out after any sale or project. They are committed to superior Continuing Support, Quality and Excellence (CSQE) in our service delivery.
The Company has her Head office in Lagos.
Leo Computers was established in 1993 as a division of Leo Computers Business Brokers, Leo Computers has grown consistently to reach the leadership position it has attained today. Leo Computers is a private limited liability company. Leo Computers Limited enjoys a reputation for professionalism and commitment to its customers
As the leading provider of total Information Solutions in Nigeria, Leo Computers has continuously developed strong business partnerships with leading International Organizations like HP, Compaq, Dell, LG, Mercury, Bluegate, Cisco, D-Link, Apc, etc whose brand of products and services have earned best-of-breed status.
Leo Computers ranges of products comprise industry specific Services and Application Software, Computer Hardware, Intra and Inter-Networking as well as Systems Integration and Environmental Control associated services. These are complemented with required Consultancy, training and maintenance supports to ensure their customers derive maximum returns from their investments.
Omatek Computers originally started as a training outfit and progressed into executive training for bank executives and their counterparts from the Oil and Gas Sector. Omatek is especially known to have had a stint training staff of shell petroleum and the NNPC.
The transformation continued and in 1990 Omatek Ventures Limited as the company was then known became a vendor of some of the world- class computers such as Dell, Compaq, IBM, ACER etc. As a result of the excellent sales performance achieved by Omatek Ventures, the company was appointed as a premium partner of Microsoft. Omatek was selling these products with annual sales revenue of over $1 million dollars. (Omatek Computers website – www.omatekcomputer.com/profile.htm).
In the course of time, Omatek metamorphosed from being a computer selling firm to a computer manufacturer. The need to continue to meet the minimum order quantity requirement of some of the best manufacturers in order to sustain production quality, led to the embrace of the SME scheme in partnership with Zenith Bank and Guaranty Trust Bank to:
manufacture Casings, keyboards and Speakers from Completely Knocked Down (CKD) Components; produce the OMATEK brand of Computers, Notebooks and Servers export computers, casings and speakers within Africa and Generate employment opportunities in the IT Industry for youths.
Omatek recently (2010 to be precise) exited the SME scheme through a Private Placement which has culminated in its listing on the floor of the Nigerian Stock Exchange-the first ICT Company in Nigeria to be so listed (www.omatekcomputer.com/profile) Today, Omatek has grown into a Group of Companies with the establishment of subsidiaries to strengthen its operations. Omatek Ventures Plc has therefore become the holding company for the subsidiaries namely:
Omatek Computers Ltd
Omatek Computers (Ghana)Ltd
Omatek Ventures (Ghana) Ltd
Omatek Engineering Services Ltd
Omatek Ventures Distribution Ltd
2. STATEMENT OF THE PROBLEM
Before the introduction of computer in Nigeria, most activities were carried out manually. Even until late 1980, computer usage and application were still alien to many Nigerian organizations. Even two decades after the introduction of computer among Nigerian organizations, the applicability of computer system in their various processes is still at its lowest ebb. So many Nigerians still prefer the manual processes instead of the use of computers. So many Nigerians are still computer illiterates. So many are still skeptical about the benefits derivable from the application of information technology in their firms.
To this end, as at the time of carrying of this report, marketing of computer products among Nigerians is still facing great challenges. It is on this backdrop that the researcher saw the need to carry out this study with the aim of investigating the challenges faced by firms in marketing computer products and finding solutions to these challenges. 3. AIMS AND OBJECTIVES OF THE STUDY
The purposes of this study include the following:-
i. To identify the various potentials that marketing of computer products can offer to Nigerian organizations.
ii. To identify some challenges that firms that market computer products in Nigeria are currently facing.
iii. To find ways and means these problems could be reduced.
iv. To highlight some benefits that organizations can enjoy by adopting information technology and computerization.
4. RELEVANT RESEARCH QUESTIONS
The following questions were asked in this study:-
1 What are the potentials that marketing of computer products can offer to Nigerian organizations?
2 What are the challenges that face corporate organizations in marketing of computer products?
3 How can these problems facing firms in marketing computer products in Nigeria be solved?
4 What are the benefits that organizations can enjoy by adopting information technology and computerization?
5. How can organizations improve the marketing of their computer products?
5. RELEVANT RESEARCH HYPOTHESES
Hypotheses that was formulated and that shall be subsequently tested in the course of this study include the following: 1.H0 Low Computer Literacy level among Nigerians does not negatively affect the marketing of computer products in Nigeria H1 Low Computer Literacy level among Nigerians negatively affect the marketing of computer products in Nigeria
2. H0 Lack of awareness about the benefits derivable from computer applications and use among Nigerians is not a major problem affecting marketing of computer products in Nigeria.
H1 Lack of awareness about the benefits derivable from computer applications and use among Nigerians is a major problem affecting marketing of computer products in Nigeria.
3. H0 High rate of poverty and unemployment in Nigeria have no impact on the marketing of computer products in Nigeria. H1 High rate of poverty and unemployment in Nigeria impacts on the marketing of computer products in Nigeria.
6. SCOPE OF THE STUDY
This study was limited to the study of the potentials and challenges of Marketing of computer products in Nigeria. The researcher examined alternative strategies Nigerian Firms use in marketing their computer products both through the annual trade fair and exhibitions, mega marketing using high powered executives and through other sales promotion programmes. The researcher also talked a little about e-marketing which is a new innovation that firms are currently using to market their computer products.
7. SIGNIFICANCE OF STUDY
To survive in the present day globalize business and intense competition, organizations have to be resourceful and should always be ready to embrace change. The impact of information technology on corporate profitability can not be over stated. Infact the impact of technological development on corporate survival and strategies include the following – changed the competitive cost positions within a business, it can create new market and new business segments and it can collapse or merge previously independent businesses by reducing or eliminating their segment cost barriers. Consumers have become more sophisticated. Their tastes and preferences are ever changing towards products that meet their expectations in terms of high quality product and service delivery.
. This study when completed shall offer a reference point for organizations that want to find the best ways to approach the Nigerian marketing in marketing their computer products in the future. It is hoped that the findings of this study shall be made available to organizations by hosting this work on the net and at the library. The society at large shall also benefit from this work in the sense through this study much awareness would have been created on the best way to eradicate high level of computer illiteracy that are still prevalent in our society even till date.
DEFINITION OF TERMS
Capability: The ability, potential or skill to do something.
Computer: An electronic machine that stores and sorts information of various kinds.
Effectiveness: Producing the desired result. The ability to achieve set goals
Efficiency: Ability to do things well, the extent resources are used to achieve set objectives.
Information Technology This is the term which covers the use of electronic technology for the information needs of a business.
Literacy: The ability to read and write in one or more languages
Marketing: This is the anticipation of consumers needs and wants and the provision of goods and services to satisfy those needs and wants at a profit to the organization.
Poverty: State of living without the basic necessities of life, Living below a recognized standard of life, Destitute, lack of material well-being.
Problem: A question to be solved, a matter which is very difficult to deal with. Sales force People that market and sales organizations products
Unemployment: State of living without a job to do, Living without a means of subsistence
REFERENCES
1. www.omatekcomputers.com/profile.htm
2. Banjoko, S. (2002), Human Resources Management, An Expository Approach. Lagos: Saban Publishers. Page 1.
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