₦airaland Forum

As an entrepreneur who wants to start orange juice manufacturing company in Nigeria. I have been pondering on which is more important to choose between nearness to Market (e.g Lagos) and nearness to Raw materials ( Benue state) when siting the orange juice factory for production.

edoman2016:
As an entrepreneur who wants to start orange juice manufacturing company in Nigeria. I have been pondering on which is more important to choose between nearness to Market (e.g Lagos) and nearness to Raw materials ( Benue state) when siting the orange juice factory for production.

I understand you very well, in fact I often visit Benue state and I know how the oranges flow like water...
Both nearness to raw materials and/or market are very important...
But it's even more important to consider which of the two will be a major determinant in the final price of the finished goods...
Remember, while launching a new product, you must consider the already established brands and how to penetrate their strong holds...
Price reduction is usually a very popular entrance mechanism, as long as the said price is favourable enough to sustain the business at the initial stage...