Strategic Cost Management and Competitive Advantage in Nigerian Fast-Moving Consumer Goods Firms

This study examines the relationship between strategic cost management practices and competitive advantage in Nigerian fast-moving consumer goods firms. The FMCG sector in Nigeria is intensely competitive, with both multinational giants and homegrown brands vying for market share in a price-sensitive consumer environment characterized by rising input costs and currency depreciation. Strategic cost management tools, including value chain analysis, target costing, and kaizen costing, have been proposed as mechanisms for sustaining competitive advantage through cost leadership and product differentiation. This study adopts a survey design and collects data from 97 cost controllers, operations managers, and finance directors in 15 FMCG firms operating across Lagos, Ogun, and Kano. Strategic cost management adoption levels and competitive performance outcomes are assessed using a structured questionnaire. Data are analyzed using correlation and regression analysis. Results indicate that value chain analysis and target costing are the most widely adopted strategic cost tools in the sampled firms and are significantly associated with cost efficiency and market competitiveness. Kaizen costing adoption remains low, despite its potential for continuous improvement. The study concludes that FMCG firms that systematically integrate strategic cost management into their operational planning demonstrate stronger competitive positioning. It recommends that professional accounting bodies in Nigeria develop industry-specific strategic cost management training programs for FMCG sector practitioners.

Keywords: strategic cost management, FMCG, competitive advantage, value chain analysis, target costing.