Sustaining Competitive Advantage in Prima Sakti

Didirikan pada tahun 1993, Prima Sakti adalah sebuah perusahaan metal stamping dan plastic injection parts. Setelah lebih dari dua dekade, perusahaan ini telah berkembang menjadi sebuah perusahaan yang kompleks dalam hal ukuran, pasar dan produk. Penelitian kualitatif ini dipandu oleh sejumlah teori sebagai landasan dan menggunakan triangulasi data. Hasil dan pembahasan menunjukkan adanya perkembangan perusahaan dari sistem made-to-order menjadi sistem hybrid antara sistem made-to-order dan made-to-stock untuk memaksimalkan kapasitas dalam menerapkan cost leadership. Target pasar juga meluas dalam hal melanjutkan penetrasi pasar, pengembangan pasar dan pengembangan produk. Hasil dan pembahasan juga mengindikasi bahwa untuk mendapatkan keunggulan kompetitif, perusahaan mengintegrasi strategi cost leadership dan differentiation. Sebagai penutup, peneliti mengusulkan sebuah teori-mini yang didasarkan pada sejumlah variabel antara lain reputasi perusahaan, kualitas produk, pelayanan, learning effect, economies of scale, economies of scope dan capacity utilization yang mungkin memengaruhi keunggulan kompetitif untuk diuji secara kuantitatif.

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COST LEADERSHIP STRATEGY, COMPETITIVE ADVANTAGE, AND PERFORMANCE: A CROSS-SECTIONAL STUDY IN THE CONTEXT OF MILK PROCESSING FIRMS IN KENYA

International Journal of Management Innovation & Entrepreneurial Research ◽

10.18510/ijmier.2020.627 ◽

2020 ◽

Vol 6 (2) ◽

pp. 64-76

Author(s):

Paul G. Kimiti ◽

Stephen M. A. Muathe ◽

Elishiba M. Murigi

Keyword(s):

Competitive Advantage ◽

Economies Of Scale ◽

Scale Economies ◽

Economies Of Scope ◽

Cost Leadership ◽

Milk Processing ◽

Leadership Strategy ◽

And Performance ◽

The Relationship ◽

Cost Leadership Strategy

Purpose of the study: Cost leadership strategy is driven by economies of scale, economies of scope, and operational efficiency is a remedy to a performance where firms are facing high costs. This study sought to investigate the influence of cost leadership strategy on the performance of milk processing firms in Kenya through the lens of competitive advantage as a mediator. Methodology: The study adopted descriptive and explanatory non-experimental research designs. It was a census of all 29 milk processing firms registered with Kenya Dairy Board as of June 2019. Sampling was done using proportionate stratified random sampling technique and data was collected using self-administered semi-structured questionnaires. The analysis was done using means, standard deviations, and regression. Main Findings: The findings showed that a cost leadership strategy had a positive and significant effect on the performance of milk processing firms in Kenya with a competitive advantage partially mediating the relationship. The constituent measures of cost leadership strategy namely economies of scale, economies of scope, and operational efficiency accounted for 40.1% of the variation in firm performance. Applications of this study: This study provides suggestions for firms to manage costs and therefore improve performance. This is by increasing the size of operations, expanding into related business areas, and improving operational processes. Novelty/originality of this study: The study examines the influence of cost leadership strategy in a new context of milk processing firms in Kenya. It also incorporates a competitive advantage as a significant variable affecting the relationship between costs and performance.

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Cost Leadership Strategy: A New Game Strategy for Competitive Advantage in Milk Processing Firms in Kenya

European Scientific Journal ESJ ◽

10.19044/esj.2021.v17n23p296 ◽

2021 ◽

Vol 17 (23) ◽

pp. 296

Author(s):

Paul G. Kimiti ◽

Stephen M. A. Muathe ◽

Elishiba M. Murigi

Keyword(s):

Competitive Advantage ◽

Economies Of Scale ◽

Study Data ◽

Superior Performance ◽

Economies Of Scope ◽

Cost Leadership ◽

Milk Processing ◽

Strategic Orientations ◽

Leadership Strategy ◽

Cost Leadership Strategy

Competitive advantage refers to the benefits that firms accrue from unique combination of possessions to outperform competitors. To build competitive advantage as a gateway to superior performance, firms pursue various beneficial strategic orientations. This study sought to establish whether cost leadership strategy gave rise to competitive advantage in milk processing firms in Kenya. The authors utilized the indicators of economies of scale, economies of scope and operational efficiency to operationalize cost leadership strategy while competitive advantage was operationalized through capabilities and knowledge. A census of all the milk processing firms was conducted with 148 respondents participating in the study. Data was collected using semi-structured self-administered questionnaires and subsequently analyzed using descriptive and inferential statistics. The study concluded that cost leadership strategy was a source of competitive advantage for the milk processors. It therefore recommends pursuit of cost leadership strategy as a competitive tool. It further recommends building of relevant capabilities and protection of tacit knowledge by firms as foundational blocks for competitive advantage.

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Economies of Scale, Economies of Scope and Financial Holding Companies Appropriate/Moderate Scale Management

Geo-Informatics in Resource Management and Sustainable Ecosystem - Communications in Computer and Information Science ◽

10.1007/978-3-662-45737-5_1 ◽

2015 ◽

pp. 1-13 ◽

Cited By ~ 1

Author(s):

Li Zeng

Keyword(s):

Economies Of Scale ◽

Scale Economies ◽

Economies Of Scope ◽

Holding Companies ◽

Financial Holding ◽

Moderate Scale ◽

Financial Holding Companies ◽

Scale Management

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EVALUATION OF BANK MERGER IN INDONESIA: Lessons from Parametric Cost Function

Buletin Ekonomi Moneter dan Perbankan ◽

10.21098/bemp.v8i1.130 ◽

2007 ◽

Vol 8 (1) ◽

Author(s):

Eugenia Mardanugraha ◽

Muliaman D. Hadad

Keyword(s):

Cost Function ◽

Technical Progress ◽

Economies Of Scale ◽

Scale Economies ◽

Seemingly Unrelated Regression ◽

Economies Of Scope ◽

Bank Merger ◽

Unrelated Regression

Merger dan akuisisi telah menjadi pilihan utama dalam pelaksanaan konsolidasi perbankan yang direkomendasikan dalam rangka penguatan industri perbankan di Indonesia. Proses merger dan konsolidasi ini membutuhkan biaya besar dan mengandung resiko, dua factor yang menyebabkan penurunan tingkat efisiensi bank yang telah melakukan merger.Penelitian ini menunjukkan bahwa proses merger menurunkan efisiensi bank, meski berdampak positif terhadap stabilitas dari efisiensi bank tersebut. Ini menunjukkan manajemen bank yang lebih baik setelah merger dan peningkatan economies of scale. Sebelum merger, bank harus meningkatkan efisiensi terlebih dahulu, misalnya dengan meningkatkan produktivitas tenaga kerja dan peningkatan utilisasi teknologi. Paper ini menunjukkan, jika skor DFA 0,7, bank dapat meraih keuntungan economies of scale, economies of scope dan technical progress yang dapat meningkatkan efisiensi.Beberapa rekomendasi yang diusulkan, pertama, Bank Indonesia seharusnya mengarahkan manajemen perbankan dalam hal pengalokasian biaya operasional secara optimal. Kedua, harus ada upaya untuk mengembalikan tingkat efisiensi bank pada level efisiensi semula. Ketiga, Bank Indonesia, harus mengarahkan perbankan untuk mengabsorpsi teknologi sejauh mungkin. Keempat, efisiensi internal merupakan aspek penting yang harus diraih sebelum proses merger dilakukan.JEL: C29, C39, D23, G21Keywords : X-efficiency, Merger, Seemingly Unrelated Regression, Cost function, Economies of scale, Bank.

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Incentive and Restrictive Mechanism of Knowledge Sharing in Basic Education Groups

International Journal of Emerging Technologies in Learning (iJET) ◽

10.3991/ijet.v16i03.20467 ◽

2021 ◽

Vol 16 (03) ◽

pp. 57

Author(s):

Yafei Wang

Keyword(s):

Knowledge Sharing ◽

Strategic Alliance ◽

Economies Of Scale ◽

Basic Education ◽

Scale Economies ◽

Education Quality ◽

Economies Of Scope ◽

Tangible Assets ◽

Group Members ◽

Education Groups

As a kind of strategic alliance, basic education groups rely on the knowledge sharing and coordination among group members, in addition to the sharing of tangible assets, to promote education fairness and improve education quality. This paper aims to incentivize and restrict the knowledge sharing among group members. Firstly, the authors analyzed the economies of scale, economies of scope, and the economies of connection brought by the knowledge sharing among group members, and summarized the problems and challenges faced by knowledge sharing. Then, the evolution mechanism of the knowledge sharing among group members was studied from the perspective of game theory, and the suggestions were proposed to improve the incentive and restrictive mechanism of the knowledge sharing among group members. The research results shed a new light on the knowledge sharing in basic education groups.

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Nexus between Cost Leadership Strategy and Performance: Fact or Fallacy in Milk Processing Firms in Kenya

International Business Research ◽

10.5539/ibr.v13n10p1 ◽

2020 ◽

Vol 13 (10) ◽

pp. 1

Author(s):

Paul G. Kimiti ◽

Stephen M.A. Muathe ◽

Elishiba M. Murigi

Keyword(s):

Balanced Scorecard ◽

Economies Of Scale ◽

Economies Of Scope ◽

Cost Leadership ◽

The Balanced Scorecard ◽

Milk Processing ◽

Leadership Strategy ◽

Food Processing Sector ◽

The Government ◽

Cost Leadership Strategy

Milk processing firms as a constituent of the food processing sector play a crucial function both economically and nutritionally. However, performance in the industry continues to be impended by high costs leading to low profitability margins, decline in output and collapse of some firms while others show stunted growth. It is hypothesized that this situation can be remedied by pursuing cost leadership strategy through economies of scale, economies of scope and operational efficiency. Extant literature however is scanty on how this strategy is employed by milk processing firms in Kenya with studies done failing to focus on how the firms manage costs as a driver for better performance. This has made it difficult to determine whether the hypothesized effect is a fact or fallacy. This study thus was an investigation of the effect of cost leadership strategy on performance of milk processing firms in Kenya. It was anchored on the balanced scorecard model complemented by the resource based view and capability based view theories. The study empirically examined the relationship using data from milk processing firms in Kenya obtained from a sample of 168 key respondents. The findings showed that cost leadership strategy had a positive and significant effect on performance of milk processing firms in Kenya. The study recommends that milk processors improve their performance by cutting costs through measures to increase their scale of operations, expand into related business areas and improve operational processes. The government and other the regulatory bodies should implement corresponding supportive policies and reforms.

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Innovation of DAISO - Focused in Economies of Scale, Economies of Scope, Diversification -

The SIJ Transactions on Industrial, Financial & Business Management ◽

10.9756/sijifbm/v4i2/04030090102 ◽

2016 ◽

Vol 04 (02) ◽

pp. 01-03

Author(s):

Jae-Soo Do ◽

Kyoung-Seok Kim

Keyword(s):

Economies Of Scale ◽

Scale Economies ◽

Economies Of Scope

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Evaluasi Merger Perbankan di Indonesia Ditinjau melalui Fungsi Biaya Parametrik

Jurnal Ekonomi dan Pembangunan Indonesia ◽

10.21002/jepi.v6i1.105 ◽

2005 ◽

Vol 6 (1) ◽

pp. 1-15 ◽

Cited By ~ 1

Author(s):

Eugenia Mardanugraha

Keyword(s):

Economies Of Scale ◽

Scale Economies ◽

Economies Of Scope ◽

Bank Merger

Konsolidasi perbankan yang dilakukan untuk memperkuat industri perbankan di Indonesia, membuat merger dan akuisisi menjadi pilihan utama dalam pelaksanaan konsolidasi tersebut. Adanya resiko yang harus ditanggung oleh bank hasil merger dan proses konsolidasi yang membutuhkan biaya tinggi, antara lain merupakan penyebab dan menurunnya tingkat efisiensi bank hasil merger. Dalam paper ini ditunjukkan bahwa proses merger menurunkan efisiensi tetapi meningkatkan stabililas dan keefisienan bank merger. Kestabitan ini menunjukkan terbentuknya manajemen yang lebih baik dari bank hasil merger. Skala ekonomi bank setelah merger mengalami peningkatan.Sebelum melakukan merger, bank secara internal harus terlebih dahulu meningkatkan efisiensinya, yang dapat dilakukan misalnya dengan meningkatkan produktivitas dari karyawan dan peningkatan penggunaan teknologi. Dalam paper ini ditunjukkan bahwa apabila skor efisiensi DFA-nya sudah mencapai 0,7, maka bank baru merasakan manfaat dan economies of scale, economies of scope dan kemajuan teknis unuk meningkatkan efisiensinya.Tulisan ini memberikan beberapa rekomendasi: pertama, Bank Indonesia harus mengupayakan agar manajemen dari bank tetap baik, sehingga bank dapat menggunakan dan mengalokasikan biaya-biaya operasionalnya secara optimal. Kedua, harus adanya upaya untuk mempercepat pulihnya efisiensi bank setelah merger, sehingga tingkat efisiensinya kembali ke level semula. Ketiga, Bank Indonesia harus mendorong perbankan untuk dapat memanfaatkan teknologi dengan sebaik mungkin. Keempat, efisiensi internal dari sebuah bank penting dilakukan sebelum bank melakukan merger.

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