The lack of infrastructure, which mainly includes power supply, communication, road networks and security, has been worsening. These problems have been compounding since many years and have forced the manufacturers and businessmen to either close down their businesses or relocate in foreign countries (Ayodele Samuel, Lagos, 2010).
The weak distribution infrastructure gap and transportation has kept the costs of starting the business or producing the services high in the country. Thus, locals and foreign investors find it as an obstacle to their productivity and competitiveness.
Nigeria has one of the biggest problems which hinders in its productivity and competitiveness and that problem is the lack of financial resources. The entrepreneurs or businessmen in the country do not possess enough capital to start the business or sufficient funds to keep it running. Even, the government is not able to lend money in the form of loans to every individual living in the country. Though, the financial sector has now progressed a lot, still it has to work more in order to maintain the country’s stability.
In 2007, the price hike of oil gave the country’s economy great support in the form of quick inflows of money into country’s economy. That was the year when the GDP of Nigeria rose and the living standards in aggregate economy got better.
There are some harmful weaknesses that the Nigerian country may face while going global. In order to globalize its business, the Nigerian company will have to integrate itself by embarking upon harnessing new and advanced technology. To achieve this integration, the country must have a strong scientific and technology base which it lacks at present.
It must gain good access to Information Technology, uninterrupted power supply and industrial mechanization which is nearly inadequate in Nigeria (Solomon O. Akinboye, n. d. ). The country mainly relies on the production and exports of oil and gas which dropped the earnings of the country due to economic boom-and-bust situation in previous years. The Nigerian government needs to diversify its economy and export base so that it doesn’t concentrate the sufferings and thus losses in one sector only.
Moreover, Nigeria and its neighboring African countries are deficient in their economies and therefore’ require foreign assistance and investments to improve and enhance their managerial and capital base. Inadequate internal resources are a big weakness that hampers its productivity and thus, competitiveness locally and on global platform (Mahe Shehu Ahmed, 2005).
Weaknesses Lack of power supply, roads network, security setups and other infrastructure Lack of finance and capital resources Lack of Information System, new Technology and Scientific base
Inability to diversify its markets Inadequate internal resources and lack of managerial capabilities and leadership skills in business environment
In SWOT Analysis, the element of opportunities signifies the externally available resources or chances of expansion or improvement that a business organization can respond to.
Local Environment Nigeria is a place where there are extensive business opportunities. The country is deficient in many areas and thus, needs improvement and more investment.
Having a high population density, the demand for products and services is high and supply is likely to be low due to bad environmental conditions. Since, Nigeria is undergoing an economic, political and social transformation and improvements with each passing day, thus, there are more chances that opportunities for new businesses may arise. The Federal Government of Nigeria has, in many publications and papers, provided opportunities to locals and foreigners in its business sectors. These sectors include manufacturing, agriculture, mining, banking and finance, remittances, etc. (Nigeria High Commission, 2009-2010). Petroleum industry contributes 90% of foreign exchange earnings to the country and thus provides a warm welcome to the local investors and employment to laborers and workers. Moreover, there are ample opportunities in investing and working in the courier business in Nigeria. The presence of large population, growing economy, effective networking and sound financial sector of the country creates attractive business environment and opportunities to take up any business in the country (Issac O. , n. d. )