Abstract

This study investigates the connection between innovation, generic strategy, and Porter's five forces in Nigeria's consumer products industry. Inspired by the fierce rivalry noted by Wilburn and Wilburn (2018), the study seeks to ascertain if these factors significantly influence innovation in the sector. Of the twenty-five consumer goods companies listed on the Nigeria Exchange Group (NGX) in 2024, four were chosen with a deliberate selection process based on double-digit market equity. Subsequently, 442 employees were surveyed about these companies. Amos software and confirmatory factor analysis (CFA) were used to evaluate the data. The study revealed that the following factors do not significantly affect innovation: cost leadership, buyer bargaining power, threat of substitutes, competitive rivalry, and differentiation techniques. However, there are notable correlations between innovation and supplier negotiating strength and the danger of new competitors. The report provides insightful information for the industry's strategic decision-making by highlighting the significance of managing supplier relationships and addressing new entrants to stimulate innovation.