TARKETT GROUP EXPANSION STRATEGIES IN NIGERIA AND SENEGAL: DUNNING'S OLI APPROACH

Abstract

Any business hoping to succeed must first expand internationally and must also tradeoff between the benefits and potential pitfalls that may be associated with such strategies. Consequently, this research did a comparative analysis on the expansion plan of Tarkett group to invest in either Nigeria or Senegal. Accordingly, the research began by providing an overview of the Tarkett Group, including its history, products and services, and current operations using the archival retrieval approach. The study anchored on the Dunning's Oli theory. This case study undertake a comprehensive analysis of two potential markets (Nigeria and Senegal) by evaluating cultural, administrative, geographic, and economic factors to identify the most favourable market for expansion. Data with regards to the gross domestic products of both target countries were sourced from World Bank Data Base, 2022 from 2007 to 2021. Data for three (3) macroeconomic variables (inflation rate, exchange rate and unemployment rates) were also sourced from the World Bank data base, 2022. The data was interpreted using descriptive statistics and trend analysis. The research confirmed that, the target company's entry mode is built on the Dunning's Oli theory and is willing to undertake foreign direct investment to overcome barriers encountered in Australia. Also, Tarkett Company's international business expansion plan is more likely to succeed in Nigeria than in Senegal, despite the challenges posed by Nigeria's macroeconomic turbulence, currency depreciation, and low ease of doing business. Hence, the study submits that, for Tarkett to succeed in Nigeria, the company should opt for foreign direct investment (FDI) rather than exporting its products