Abstract The influence of globalization in telecommunication companies has greatly increased the level of competition in the industry and they are forced to be competitive to survive. Different types of strategies are put in place in order to be profitable and competitive. All these strategies are directed to attract, retain and maintain customers for continuous profitability. However, majority of them hardly measure the impact of their strategic innovation on their customers. The paper seeks to explore the influence of competitive strategies embarked upon by selected telecommunication companies in Nigeria on their performance. The paper also examines how competitive strategies could be implemented for improved customer satisfaction, retention and loyalty. Three null hypotheses were postulated to test the relationship between lower prices and customer satisfaction, uninterrupted trunk services and customer loyalty, and customer complaint handling and retention. Only customers using telephone service were selected as respondents from Lagos State. The state was stratified in to 20 local government council area and questionnaires were distributed to 125 respondents in each of them. The completion rate of the questionnaire in each of them is between 103 and 110. Survey research design was adopted to carry out the study. A structured questionnaire was designed and validated through the construct validity and tested for confirmation using the KMO measure of sampling adequacy. It was also made reliable using Cronbach’s Alpha test. From the study, findings revealed relationship between competitive strategies and customer satisfaction, retention and loyalty. The findings revealed that there is a relationship between competitive strategies, its constituents and performance of telecommunication companies. It is recommended that universal mobile telecommunication services (UMTS) operators should adopt the culture of competitive strategies since it can impact on their performance for achieving competitive advantage.
Keywords: competitive strategy, performance, lower pricing, customer satisfaction.