The Challenges Finnish Timber Firms Might Encounter when Entering the Nigerian Market
Adejumo, Adeleke; Thompson, Christian; Basnet, Sandhya (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024051713082
https://urn.fi/URN:NBN:fi:amk-2024051713082
Tiivistelmä
The aim of this study was to analyze the challenges Finnish timber firms might encounter when entering the Nigerian market. The aim was to recommend strategies for a successful market entry into the Nigerian timber market.
The main framework of the study was to research the major challenges facing the Nigerian timber industry and the possibility of Finnish timber firms gaining a presence in the market.
The study began by analyzing the different market entry strategies and then proceeded to discuss the practicalities of the Nigerian timber market. The challenges Nigerian timber importers currently face when sourcing timber products from other countries were also discussed. The study made use of both a qualitative approach in the form of interviews with the players in the industry and an analysis of quantitative research.
The findings in the thesis show that corruption, enforcement of regulations and standards, import duties, illegal logging, inflation, exchange rate, and currency devaluation are the major challenges Finnish timber firms might encounter when entering the Nigerian market. However, to hedge these risks, the Finnish timber firms could develop contingency plans to adapt to different political scenarios, build relationships with key political stakeholders, diversify revenue streams, monitor macroeconomic indicators, implement security protocols, build a strong relationship with local stakeholders, leverage support mechanisms such as government support and diplomatic channels, and conduct thorough risk assessments. By proactively tackling these challenges, Finnish timber firms can increase their opportunities of success and create a long-term presence in the Nigerian timber industry.
The main framework of the study was to research the major challenges facing the Nigerian timber industry and the possibility of Finnish timber firms gaining a presence in the market.
The study began by analyzing the different market entry strategies and then proceeded to discuss the practicalities of the Nigerian timber market. The challenges Nigerian timber importers currently face when sourcing timber products from other countries were also discussed. The study made use of both a qualitative approach in the form of interviews with the players in the industry and an analysis of quantitative research.
The findings in the thesis show that corruption, enforcement of regulations and standards, import duties, illegal logging, inflation, exchange rate, and currency devaluation are the major challenges Finnish timber firms might encounter when entering the Nigerian market. However, to hedge these risks, the Finnish timber firms could develop contingency plans to adapt to different political scenarios, build relationships with key political stakeholders, diversify revenue streams, monitor macroeconomic indicators, implement security protocols, build a strong relationship with local stakeholders, leverage support mechanisms such as government support and diplomatic channels, and conduct thorough risk assessments. By proactively tackling these challenges, Finnish timber firms can increase their opportunities of success and create a long-term presence in the Nigerian timber industry.