Every organization aims to be profitable, which paradigm works best.
There are two paradigms to consider to understand, the warfare paradigm and the service paradigm.
The warfare paradigm: this paradigm focuses on the interest of the business person, his objective is to make money off his customer with little regard to how profitable the customer is, his only objective is to get everything, they charge above their market price, give a false narrative about products to their customer. The business owner treats his customer well, they act like they value their customers but it is the other case, it all has to do with using his wits to his advantage over the customer.
The service paradigm: this paradigm focuses on the interest of the customer, his objective is to provide satisfaction and utility for them but also make what they are owed, they do not charge above their market price, they make products available to the customer, the products they need and the right products that solve problems for the customer. Businessmen who follow the service paradigm do so out of moral principles and not out of selfish reasons for profit.
Meeting of objective is crucial for business and that is the biggest part of owning a business in Nigeria, choosing the warfare paradigms helps you report to shareholders through financial statements that the business is profitable, encourages them to buy more shares in the organization, shareholders are only concerned with the profitability and not about how the organization operates, the organization also have a responsibility to their employees, they have to pay salaries and bills of the organization, they have to buy inventories and pay creditors, suppliers, while also releasing dividends. Basically, it improves the business by boosting the sales and profitability of the organization. Warfare paradigm is the main paradigm used in Nigeria, organizations are only focused on making a profit than quality, maintaining competitive advantages and growth comes into play.
Although the warfare paradigm does a lot but is the customer fulfilled with the products they get from the business owners, what are the effects of this paradigm on businesses:
Loss of customer: an intelligent customer will pay for the products the business owner is selling because they need it but will that same customer come back for the product, in economics, there is a view that explains that some customers like the expensive product, the more expensive the product, the more the customer will believe its original, this view focuses on the capability of the customer to buy, if there is no capability, he/ she goes elsewhere for the product, getting the product at a cheaper rate.
Loss of brand value: word of mouth advertisement works faster and more believable than advertisements done on television or radio, people want to know how the products works if it is safe for usage, a customer that feels scammed by the business owner has nothing good to say about the products to others, the brand loses value in the face of others thereby or sometimes leads to a reduction in sales.
Reduction in sales: when sales drop drastically, business owners tend to not know where the problem is from, what are they doing wrong, all the negative implications of using the warfare paradigm lead to the reduction of profit.
There are several advantages to using the service paradigm.
Competitive advantage: gaining the trust of customers by providing product solutions helps gain competitive advantage, getting customers to patronize the business which improves sales and productivity. Customers rely on the products sold and believe the supplier has his interest in mind, it also helps with word-of-mouth advertisement.
Using the warfare paradigm helps more, the business owner is earning the profit he is meant to earn, selling at the right price, he is still making profit regardless of how he puts the customer’s interest before his own.