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The Four Models of Competitive Strategy

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Austin Okere, Founder of CWG Plc
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Austin Okere is a known voice in the Nigerian IT industry. In this piece on his LinkedIn page, the Founder of CWG Plc, shares ‘The Four Models of Competitive Strategy’.

About a week ago I had a poser on my social media that drew numerous contending views. It was regarding positioning with the lowest price as the main competitive differentiator, suggesting that it was a race to zero.

I promised to follow up with a full article on competitive strategy to address the questions raised. This is in fulfilment of that promise.

I see four clear and distinct models for competitive strategy as follows:

Technology Leadership
This strategy is mostly adopted by companies who have captured a major leadership advantage on the innovation curve. The leadership position they hold in their niche market is very significant, to the extent that competitors’ chance of replicating or catching up is very distant.
Companies such as Apple, Alphabet, Alibaba, Ant Financial, Jumia across Africa, Space X, Solar City and Tesla among others.
They typically charge a premium for their products and services, enabling them to spend more on further research and investing in the best skills, thereby reinforcing their technology leadership and sustaining their success cycle.

Service Excellence
This strategy is mostly adopted by companies who are not necessarily technology leaders but use their superior delivery and customer support ability as a means of winning customer patronage and sustaining loyalty.
Companies such as REI who will replace your boots even after three years after purchase, Amazon with their top-notch delivery and support service coupled with a wealth of products at competitive prices, Nordstrom with their lax return policy and short check-out lines, Apple with their user friendly devices and seamless in-store customer journey with the help of ‘geniuses’, and where check-out lines literally do not exist.
GTBank in Nigeria making retail banking very easy for customers through their GT World online and mobile Application.

Customer Intimacy
This strategy is mostly used by companies who make you feel like a ‘part of the family’. They cultivate a familiarity with their clientele and tend to be on first name basis with them. They tend to know when your first child has gone away to college, and when there is a new addition to the family.
They typically will be the neighbourhood corner shop. They have provided products and services to your parents and grandparents.
They tend to do grocery shopping and delivery to busy working mothers. Larger companies who use this strategy tend to have long retainer-ships with their customers, which are rarely put out for re-bids. They know and understand their customers and bear their idiosyncrasies, while the customers reciprocate with loyalty

Price Leadership
This strategy is mostly adopted by companies who have had a long early lead on a product development and launch, and have ‘deeply milked’ the gains of their investments. They then use low prices to deter competition from entering the market.
An example would be Coca-Cola. Other companies that may use this strategy are the ones who have copied the intellectual property of more advanced competitors and have not incurred the cost and pain of research.
Having inadvertently benefitted from a product development cost bonanza, are happy to price it relatively low to attract patronage.
More often than not, these copy products are of inferior quality to the original, making the very low prices possible. Companies in this category tend to be in developing markets such as China where the rule of law is not as mature as the developed world.

China and the Lesson of Cost
To be said for China, they have used this strategy to great advantage, and are beginning to develop the local intellectual property as well.
Other companies that may use low prices to attract patronage are the ones who have committed significant investment to establish elaborate infrastructure, such as telecom companies with their network infrastructure.
The infrastructure being considered sunk costs, services running on them such as data and voice are priced with very low and sometimes negative margins because any additional revenue is considered contribution margin.
They will rather take the customer at any cost rather than allow their competitor to benefit from a lost sale.
My company CWG Plc, is working with some of the telecom companies to a have an underlining valuable service such as a mobile based Accounting/Inventory system to customer segments such as SMEs to reduce churn and induce loyalty rather than just dropping prices to less than the competition.
In this regard, Safaricom in Kenya have used the MPESA mobile banking Application to great effect.

Putting All Together
While I do not begrudge any company their dominant competitive strategy, I do have deep reservations about using cheaper pricing as the sole competitive strategy.
The reason for that is not far-fetched; it does not encourage research to improve the product nor additional investment to improve service and scale.
It very quickly degenerates into a rat race because there is always ‘cheaper than cheap’. Ultimately the winner of a rat race is still a rat.

Austin Okere is the Founder of CWG Plc & Entrepreneur in Residence at CBS, New York. Austin also serves on the World Economic Forum Global Agenda Council on Innovation and Intrapreneurship and on the Advisory Board of the Global Business School Network based in Washington DC.

 

 


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Study Reveals 83% of Employees Stay Connected to Work During Time Off, Fuelling Digital Anxiety

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A new Kaspersky survey undertaken in the Middle East, Turkiye and Africa (META) region reveals that digital anxiety is becoming a defining feature of modern work culture, as employees don’t disconnect even during their free time and vacations.

According to the findings, 83% of respondents keep an eye on work tasks outside working hours. An overwhelming 85% reply to all work-related messages in instant messaging apps, while the same share (85%) check work emails during their time off – and 81% admit they are responding to work emails while on vacation or in their personal time.

The pressure to remain constantly available is contributing to heightened stress levels in the workplace. Other sources of stress include work issues, for example, 43% experience anxiety after accidentally sending a random message to a work chat.

Interestingly, not all digital mishaps are perceived equally: 40% report that they take it calmly when they send an unfinished email, proving that some mistakes are considered less damaging than others.

Blurred boundaries between professional and personal life, combined with instant communication tools, are intensifying feelings of constant monitoring and fear of making digital errors.

More than a third (36%) of respondents say they feel extremely uncomfortable or even scared if their boss notices them scrolling through social media at work instead of working. The “always-on” culture may undermine employee well-being, increase burnout risks, and reduce overall productivity in the long term.

“Digital anxiety doesn’t just affect employee well-being – it can also increase cybersecurity risks for organisations. When people feel constant pressure to respond immediately to messages and emails, they are more likely to act impulsively, without carefully verifying links, attachments, or sender identities.

This urgency can make employees more vulnerable to phishing, and other scams using social engineering techniques,” comments Brandon Muller, Technical Expert at Kaspersky.

Kaspersky recommends employees to follow the below tips to avoid digital anxiety and associated cyber risks:

  • Slow down before clicking or replying. Digital anxiety can trigger automatic reactions. A short pause to check sender details, URLs, or attachments can prevent security breaches.
  • Treat urgency as a red flag. Cybercriminals often exploit pressure and fear. Always verify unexpected or urgent requests before responding.
  • Avoid handling sensitive information on unsecured networks. Public Wi-Fi, often used when working outside regular hours, increases exposure to cyber threats. Mobile network and VPN should be applied in such cases.
  • Use technologies that will help reduce risks. For example, Kaspersky Premium offers AI-powered anti-phishing features designed to help warn of potential threats.

Businesses can reduce cybersecurity risks related to employees’ digital anxiety by providing regular cybersecurity training that helps staff recognise threats and respond correctly even under stress.

At the same time, organisations should use robust cybersecurity solutions to minimise the impact of human error. Kaspersky Next’s adaptable and robust cloud-native protection, underpinned by an unequalled cybersecurity track record, is one of such products.

Protection solutions for mail servers, such as Kaspersky Security for Mail Server, with anti-phishing capabilities, help to additionally decrease the chance of infection through a phishing email.


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FG Approves Electric Buses for Civil Servants, Pushes Local Auto Growth

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Federal Government of Nigeria has approved the acquisition of electric buses for civil servants as part of efforts to promote cleaner transportation and boost local vehicle manufacturing.

FG Approves Electric Buses for Civil Servants, Pushes Local Auto Growth

The development was disclosed in Abuja by Joseph Osanipin, Director-General of the National Automotive Design and Development Council (NADDC). Osanipin said the buses would be sourced from local assemblers to strengthen domestic production and stimulate growth in Nigeria’s automotive sector.

He stated: “The initiative is aimed at encouraging the transition to cleaner mobility while creating opportunities for local manufacturers.” According to him, the government has also procured charging infrastructure that will be deployed across parts of the country to support the adoption of electric vehicles.

As part of broader efforts to develop the sector, the council is establishing the Nnewi Automotive Development Park in Anambra State. Osanipin explained: “We are developing the Nnewi Automotive Development Park where we will provide the necessary infrastructure so that users of the park can share facilities.”

He added that the shared infrastructure model would enable investors and manufacturers to operate without bearing the full cost of setting up independent facilities. The council is also seeking additional investment to accelerate the development of the park and attract more industry participants.

Osanipin urged Nigerians to support locally assembled vehicles, noting that increased patronage would help create jobs and drive economic growth. He said the council is providing training to manufacturers and stakeholders to enhance local production of vehicle components such as batteries and tyres.

“The move will reduce import dependence, create employment opportunities, and contribute to the country’s Gross Domestic Product,” he said. The NADDC is also working with the Bank of Industry Nigeria to facilitate the disbursement of the National Automotive Development Fund to qualified stakeholders.


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Jumia Reaffirms Commitment to Consumer Trust on World Consumer Rights Day

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As the global community commemorates World Consumer Rights Day, Jumia Nigeria joined industry leaders, regulators, and consumer advocates at the Lagos Marriott Hotel, Ikeja, for a high-level panel session hosted by the Lagos State Consumer Protection Agency (LASCOPA) on Tuesday, March 17, 2026.

Speaking during the session, Peters Afebuame, Group Head of Content and Production at Jumia, highlighted Jumia’s comprehensive approach to protecting consumers from counterfeit or adulterated products on its marketplace, noting that the company has implemented structured checks and technology-driven systems across the entire product lifecycle, from seller onboarding to post-listing monitoring, to safeguard product authenticity.

“Ensuring product authenticity on our platform requires a combination of technology, policy enforcement, and continuous seller engagement,” he stated.

“At Jumia Nigeria, we have implemented a multi-layered process that begins with rigorous seller onboarding and policy agreements, followed by catalogue configuration controls, AI-driven product attribute verification, and the use of global product identification standards. These systems are reinforced by ongoing quality moderation, brand protection mechanisms, and strict enforcement actions, including product and seller delisting, ensuring that customers can shop on our platform with confidence.”

Central to Jumia’s consumer protection framework is a rigorous seller verification process designed to ensure marketplace integrity. Vendors are required to provide proof of legal and regulatory compliance before gaining access to the platform. This vetting process is reinforced by a strict quality control system that monitors products listed on the platform, backed by a zero-tolerance policy toward counterfeit or substandard goods. Non-compliant sellers face penalties and permanent delisting from the marketplace.

Transparency also remains a core priority in helping customers make informed purchasing decisions. Product listings across the platform feature clear specifications, verified descriptions, and detailed images, enabling shoppers to understand exactly what they are purchasing before completing a transaction.

Recognising that digital literacy plays a critical role in online safety, Jumia continues to invest in consumer education initiatives through instructional “how-to” videos, platform guides, and social media campaigns that equip Nigerian shoppers with practical knowledge to navigate online shopping securely and confidently.

To further strengthen transaction security, Jumia leverages its proprietary payment solution, JumiaPay, which provides a secure and encrypted payment infrastructure designed to protect customer financial data. The company also adheres to internationally recognised data protection standards such as the General Data Protection Regulation (GDPR) and local regulatory frameworks established by the Nigeria Data Protection Commission (NDPC), ensuring responsible handling and protection of user information.

Beyond the point of purchase, Jumia reinforces consumer protection through a customer-centric return and refund policy designed to ensure seamless resolution when issues arise. A dedicated customer service team also provides support through multiple channels, including phone and social media, enabling swift response to consumer inquiries and complaints.

As e-commerce continues to expand across Nigeria, Jumia reaffirmed its commitment to building a marketplace that prioritises fairness, transparency, and consumer safety. Through continuous investment in technology, strong policy enforcement, and ongoing consumer engagement, the company aims to strengthen trust and confidence in Nigeria’s growing digital commerce ecosystem.


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