scholarly journals GENERIC STRATEGIES AND FINANCIAL PERFORMANCE PERSISTENCE IN THE BANKING SECTOR IN INDONESIA

2018 ◽  
Vol 17 (1) ◽  
pp. 79
Author(s):  
Etikah Karyani ◽  
Hilda R. Rossieta
Keyword(s):  
Banking Sector ◽  
Superior Performance ◽  
Competitive Advantages ◽  
Strategic Positioning ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Generic Strategy ◽  
And Performance ◽  
Generic Strategies

This study investigates the relationship between the bank strategic positioning and performance. A central question in the management literature has been to identify the sources of competitive advantage that allow firms to attain and persistent superior performance over their competitors. Bank can build competitive advantages by following either a cost leadership or a differentiation strategy. Bank adopting a cost leadership strategy principally attain advantages based on operational efficiency, and hence the performance of such firms should more persist over time than other bank adopting differentiation strategy. This study documents an empirical investigation of this premise using a sample of 216 firm-years over the period 2009-2013. This study details the development of constructs using audited financial-level archival data to capture a bank's strategic positioning. These constructs are then used in empirical models that explore the persistence of bank performance. Using confirmatory factor analysis, the results of these models estimation indicate that although both cost leadership and differentiation strategies have a positive effect on contemporaneous performance, only the efficiency strategy allows a bank to achieve and maintain superior performance in the future.   Keywords: Generic strategy, efficiency, differentiation, persistence

scholarly journals Testing The Applicability of Porter's Generic Strategies In The Digital Age: A Study of Korean Cyber Malls

1970 ◽  
Vol 21 (1) ◽  
pp. 19-46
Author(s):  
Eonsoo Kim ◽  
Dae-il Nam ◽  
J. L. Stimpert
Keyword(s):  
Physical Space ◽  
Digital Age ◽  
Superior Performance ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Performance Differences ◽  
Leadership Strategy ◽  
Generic Strategy ◽  
Generic Strategies ◽  
Porter's Generic Strategies

Although traditional strategic management theory evolved in the context ofbrick and mortar firms operating in a physical space, we propose that Porter's(1980) generic strategy framework is still applicable, albeit in need of somemodification, to competition in the digital age. This study tests that assertionin a sample of Korean online shopping malls. In particular, it explores the followingresearch question: Do Porter's (1980) generic strategies explain performancedifferences across business-to-consumer (B2C) firms?Our results suggest that Porter's generic strategies are applicable to e-businessand that they indeed explain performance differences across firms.Contrary to conventional wisdom, but consistent with the logic of business inthe digital realm, the cost leadership strategy exhibited the lowest performance.Firms pursuing a hybrid cost leadership/differentiation strategy exhibited thehighest performance. Interestingly, when a sub-sample of all firms pursuing thehybrid strategy was analyzed for performance differences by firm type (pureplays vs. clicks-and-bricks), pure plays exhibited superior performance. Ourfindings suggest that cost leadership and differentiation can be combined at thesame time, and must be combined to be successful in e-business.

scholarly journals An Empirical Study of Strategic Positioning and Production Efficiency

2015 ◽  
Vol 2015 ◽  
pp. 1-11 ◽  
Author(s):  
Hsihui Chang ◽  
Guy D. Fernando ◽  
Arindam Tripathy
Keyword(s):  
Production Efficiency ◽  
Competitive Advantages ◽  
Strategic Positioning ◽  
Cost Leadership ◽  
Listed Firms ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Brand Development ◽  
The Relationship ◽  
Cost Leadership Strategy

We examine the relationship between strategic positioning of firms and their production efficiency. Firms with competitive advantages based on either cost leadership or differentiation are able to outperform their competitors. Firms pursuing a cost leadership strategy seek to be the lowest cost producer, primarily by minimizing inputs for a given level of output, thus concentrating on increasing the efficiency of their production processes. On the other hand, firms that pursue a differentiation strategy rely on innovation, brand development, marketing, and so forth to achieve competitive advantages; therefore such firms do not place high emphasis on production efficiency. Thus the importance of production efficiency for the success of a firm depends on the strategic positioning of the firm. We apply DEA to an archival data for a large sample of publicly listed firms to investigate the importance of production efficiency for firms based on their strategic positioning. We provide empirical evidence that firms pursuing a cost leadership strategy attribute higher importance to production efficiency, while firms pursuing differentiation strategy attribute less importance to production efficiency.

scholarly journals Generic Strategies and Performance of Pharmaceutical Manufacturing Companies in Nairobi County, Kenya

2021 ◽  
Vol 3 (1) ◽  
pp. 17-35
Author(s):  
Grace Wanjiru Ngugi ◽  
Esther Gitonga
Keyword(s):  
Pharmaceutical Manufacturing ◽  
Manufacturing Companies ◽  
Differentiation Strategy ◽  
Pharmaceutical Firms ◽  
Leadership Strategy ◽  
And Performance ◽  
The Cost ◽  
Focus Strategy ◽  
Generic Strategies ◽  
Cost Leadership Strategy

Pharmaceutical industry has been facing a lot of competition both from the inside and outside the country (importers of raw materials who also manufacture finished product). A report by the Kenya Pharmaceutical Sector Profile in 2018 indicated that imports have been rising sharply and grew by more than 30% between 2017 and 2018 in other sectors but a decline from the pharmaceutical manufacturing sector which could be attributed to the low-quality pharmaceutical products. The aim of this study was to analyze the generic strategies and performance of pharmaceutical manufacturing companies in Nairobi County, Kenya. The specific objectives were to: assess the effect of cost leadership strategy, differentiation strategy and focus strategy on performance of pharmaceutical companies in Nairobi County, Kenya. The study was informed by Porter’s Five Forces Model and Resource Based View theory. The study used descriptive research design. The population of this study was all the 22 pharmaceutical manufacturing companies in Nairobi County. The target population was the managers in the pharmaceutical manufacturing companies. The study was a census of all pharmaceutical manufacturing companies in Nairobi. A structured questionnaire was used for data collection. The questionnaire was pilot tested to determine its validity and reliability. The study used primary data which was gathered from the managers. Data collected was organized in spreadsheets for the purpose of analysis. It was coded and entered in Statistical Package for Social Sciences (SPSS, Version 22.0) for analysis. Correlation and regression analysis were conducted to find the relationship between the independent and dependent variables. The study found that cost leadership strategy, product differentiation strategy and focus strategy positively and significantly influenced performance of pharmaceutical companies in Nairobi County, Kenya. The study concluded that managing the production expenses enhances business performance because of increased profit value. Also, the study concluded that using technology to automate business operations lowers the cost thus increasing profitability. In addition to that, the study concluded that providing high quality products to customers builds customer loyalty which translates to improved performance. Similarly, the research concluded that lowering prices relative to that of competitors attracts more customers leading to increased sales volume. It was recommended that pharmaceutical firms should always aim at lowering the cost of production to reap optimal profits. However, these products should meet the quality demands in the market. It was also recommended that businesses should conduct customer satisfaction surveys to bridge the niche that may be identified. This way, businesses will be able to offer the relevant products and services and gain customer loyalty which eventually leads to increased profitability. In addition, it was recommended that non price competition strategies such as product packaging should be adopted by pharmaceutical firms to increase profitability. Customers would prefer to buy uniquely packaged products as they appear appealing. Future areas of study should focus on other competitive strategies since the three generic strategies that were identified did not account for 100% of the variation in performance of pharmaceutical firms.

scholarly journals Antecedents of University Performance: Does Strategy Matter?

2021 ◽  
Vol 9 (2) ◽  
pp. 176
Author(s):  
Okechukwu Lawrence Emeagwali
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Differentiation Strategy ◽  
Generic Strategy ◽  
And Performance ◽  
Survey Responses ◽  
The Cost ◽  
University Performance ◽  
Focus Strategy ◽  
Generic Strategies

In a bid to contribute to the increasing body of extant interdisciplinary research within the antecedents of university performance and strategic management domains, this study investigates the role of generic strategies in the perceived performance of universities. Using a case study of eight Nigerian universities and survey responses from 380 academics and administrative staff from these universities, the study tested four succinct hypotheses using the covariance structural equation modeling (CB-SEM) technique. Findings revealed that while there was a limited link between differentiation strategy and performance, there was a substantially strong link between focus strategy and performance according to the findings. Similarly, findings revealed that respondents from public-private universities perceived their institutions as having the strongest generic strategy-performance connection, followed by respondents from the public sector. The cost leadership-performance path demonstrated no significant effect.

scholarly journals Competitive Strategy, Market Entry Mode and International Performance: The Case of Construction Firms in China

2017 ◽  
Vol 3 (3) ◽  
pp. 1 ◽  
Author(s):  
Shigang Yan ◽  
Guozhi Liu
Keyword(s):  
Competitive Strategy ◽  
Market Entry ◽  
Entry Mode ◽  
Superior Performance ◽  
International Performance ◽  
Construction Firms ◽  
Differentiation Strategy ◽  
International Construction ◽  
Leadership Strategy ◽  
And Performance

As an important participant in the international construction market, Chinese construction firms (CCFs) are confronted with the tasks of keeping themselves competitive. To help CCFs maintain and improve their competitiveness, this research builds a conceptual model to investigate the relationship between competitive strategy, market entry mode and performance within CCFs. Based on data collected from CCFs, this research has confirmed the importance of cost leadership strategy, differentiation strategy and business scope diversification, to achieve their superior performance. Moreover, there are positive relationships among entry mode strategies with CCFs’ international performance.

Intentional Cannibalization, Radical Innovation, and Performance: A Comparison of Chinese and Western Enterprises in China

2019 ◽  
Vol 28 (2) ◽  
pp. 40-58
Author(s):  
Saeed Samiee ◽  
Maria Sääksjärvi ◽  
Nükhet Harmancioǧlu ◽  
Erik Jan Hultink
Keyword(s):  
Radical Innovation ◽  
Marketing Strategies ◽  
Chinese Firms ◽  
Chinese Enterprises ◽  
Cost Leadership ◽  
Subsequent Performance ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
And Performance ◽  
Cost Leadership Strategy

Research contrasting the marketing strategies of foreign and domestic firms within local markets is scarce but is of critical importance to both types of firms. This research examines how intentional cannibalization (IC) functions in Western and Chinese enterprises operating in China and evaluates IC’s impact on radical innovation and subsequent performance while accounting for the moderating effects of cost leadership and differentiation strategies. The investigation uncovers important marketing strategy concerns for firms competing in emerging markets such as China. The results demonstrate that IC on its own correlates with radical innovation for Western firms, but not for Chinese firms. For Chinese firms, the link between IC and radical innovation becomes significant only in combination with a cost leadership strategy. For Western firms, the link between IC and radical innovation is strengthened when these firms pursue a differentiation strategy and, in contrast to Chinese firms, radical innovation mediates the effect between IC and performance. Thus, the way IC and radical innovation affect performance varies across Western and Chinese enterprises. These findings bolster and extend research regarding strategies of local and nonlocal firms in home markets.

Insights Between Environmental Scanning Activities and Porter's Generic Strategies: An Empirical Analysis

1992 ◽  
Vol 18 (4) ◽  
pp. 791-803 ◽  
Author(s):  
Daniel F. Jennings ◽  
James R. Lumpkin
Keyword(s):  
Environmental Scanning ◽  
Chief Executives ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Different Types ◽  
Customer Attitudes ◽  
Generic Strategies ◽  
Porter's Generic Strategies ◽  
Cost Leadership Strategy

This study explored the relationships between the environmental scanning activities of chief executives from a single industry and their organizations' strategies, on the premise that executives employing different types of Porter's generic business-level strategies would use different scanning activities. There were differences in the strategy-scanning linkages. Specifically there are indications that firms with a differentiation strategy tend to employ a scanning activity that places more importance on evaluating opportunities and customer attitudes. Firms with a cost leadership strategy tend to use a scanning activity that evaluates competitive threats and tracks the policies and tactics of competitors.

Does a differentiation strategy lead to more sustainable financial performance than a cost leadership strategy?

2014 ◽  
Vol 52 (5) ◽  
pp. 872-896 ◽  
Author(s):  
Rajiv D. Banker ◽  
Raj Mashruwala ◽  
Arindam Tripathy
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Positive Impact ◽  
Strategic Positioning ◽  
Content Type ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Trade Offs ◽  
Cost Leadership Strategy

Purpose – The purpose of this paper is to investigate the relationship between the strategic positioning of firms and the sustainability of firm performance. The paper argues that pursuing a differentiation strategy leads to more sustainable financial performance compared to following a cost leadership strategy. However, a differentiation strategy may also be associated with greater risk. Design/methodology/approach – To investigate the research questions, the authors utilize publicly available archival data consisting of 12,849 firm-year observations for the period 1989-2003. In the first stage of the analysis, factor analysis is used to determine firms’ strategic positioning. The resulting factor scores are subsequently used in regression analysis to investigate the sustainability of performance based on the strategic positioning of firms. Findings – The results indicate that both cost leadership and differentiation strategies have a positive impact on contemporaneous performance. However, the differentiation strategy allows a firm to sustain its current performance in the future to a greater extent than a cost leadership strategy. The differentiation strategy, though, is also associated with greater systematic risk and more unstable performance. Originality/value – Sustainability of performance refers to how much a firm's current profitability can be sustained in future periods. The main contribution of this study is the comparison of generic strategies based on the sustainability of firm performance. This aspect of the strategy-performance link has not been considered in prior work. Another contribution of the study is that it considers multiple dimensions of firm performance in order to evaluate the trade-offs involved with pursuing different strategies. In particular, the authors contribute to the literature by documenting that while differentiation leads to more sustainable earnings, it also leads to riskier and more unstable earnings.

scholarly journals Analisis SWOT terhadap Strategi Penjualan Smartphone Xiaomi dan Vivo

2020 ◽  
Vol 3 (1) ◽  
pp. 50-63
Author(s):  
Eriana Afnan ◽  
Sam'un Jaja Raharja
Keyword(s):  
Swot Analysis ◽  
Descriptive Analysis ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Generic Strategy ◽  
Market Needs ◽  
Focus Strategy ◽  
Cost Leadership Strategy ◽  
Sales Strategies

The growth of smartphone users every year continues to grow and is a necessity for its users. Every smartphone company competes for generous consumers and competes to provide the technology and features needed by its users. This research was conducted to see a SWOT analysis of sales strategies on Xiaomi smartphones and Vivo smartphones in terms of differentiation strategy, focus strategy, cost leadership strategy. This study uses a digital use database to find articles relevant to the SWOT analysis of sales strategies on Xiaomi smartphones and Vivo smartphones. This type of research used in this research is descriptive analysis with a qualitative approach. The analysis method used is the SWOT analysis and Porter's Generic Strategy. The results showed that in total, this smartphone company had implemented the generic porter strategy well. However, the Vivo company's focus strategy is only applied so that the Vivo company can focus on marketing efforts on one or two market segments and create a marketing mix that is specific to that market so that the company can find better market needs.

scholarly journals Marketing Strategies of SMEs and Performance: Empirical Evidence from Pharmaceutical Sector of Khyber Pakhtunkhwa

2019 ◽  
Vol IV (II) ◽  
pp. 151-157
Author(s):  
Mian Daud Nazim ◽  
Saima Batool ◽  
Saima Urooge
Keyword(s):  
Marketing Strategies ◽  
Cost Leadership ◽  
Industrial Estates ◽  
Differentiation Strategy ◽  
Segmentation Strategy ◽  
Industrial Sectors ◽  
Industrial Estate ◽  
Leadership Strategy ◽  
And Performance ◽  
The Cost

The study finds the effects of marketing strategies on the SME performance. Further, it explores the marketing strategies adopted by the pharmaceutical companies in various industrial sectors of KP. The Industrial Estate Hayatabad, Industrial Estate Hattar and Industrial Estate Gadoon were taken as sample areas for the selection of firms. Data was collected from 300 pharmaceutical firms in these Industrial Estates. Closedended questionnaire was used to collect data. The segmentation strategy, differentiation strategy, cost leadership strategy i.e. porter generic strategies were analyzed. The study used the correlation and regression model. Results reveal the cost leadership, differentiation strategy, segmentation have positive relationship with the firm performance. The findings also show that the cost leadership and differentiation strategy have significant effect while the segmentation strategy has insignificant effect on the performance of a firm.

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