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

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

Journal of International Marketing ◽

10.1177/1069031x19866832 ◽

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.

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The Role of Marketing Strategies in Modern Business and Society

Green Economic Structures in Modern Business and Society - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-4666-8219-1.ch015 ◽

2015 ◽

pp. 274-300 ◽

Cited By ~ 5

Author(s):

Kijpokin Kasemsap

Keyword(s):

Organizational Performance ◽

Marketing Strategies ◽

Business And Society ◽

Sustainable Competitive Advantage ◽

Differentiation Strategy ◽

Segmentation Strategy ◽

Leadership Strategy ◽

Modern Business ◽

Focus Strategy

This chapter introduces the role of marketing strategies in modern business and society, thus explaining the theoretical and practical concepts of competitive strategy, market segmentation strategy, differentiation strategy, cost leadership strategy, focus strategy, market orientation, and organizational performance; the significance of marketing strategies in modern business and society; and the impact of marketing strategies on organizational performance. Marketing strategies serve as the valuable foundation of marketing plans designed to fill marketing needs and reach marketing objectives. Marketing strategies include all basic and long-term activities in the field of marketing, thus dealing with the analysis of the strategic situation of an organization and the formulation, evaluation and selection of market-oriented strategies and effectively contribute to the goals of the organization and its marketing objectives. The chapter argues that applying marketing strategies has the potential to increase organizational performance and gain sustainable competitive advantage in the social media age.

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

International Journal of Business Management, Entrepreneurship and Innovation ◽

10.35942/jbmed.v3i1.157 ◽

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.

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Competitive Strategy Analysis from Entrepreneurship Stories

International Conference on Eurasian Economies 2019 ◽

10.36880/c11.02287 ◽

2019 ◽

Author(s):

Şeyma Gün Eroğlu ◽

Ayşe İrmiş

Keyword(s):

Production Process ◽

Local Market ◽

Competitive Strategies ◽

Strategy Analysis ◽

Cost Leadership ◽

Differentiation Strategy ◽

Leadership Strategy ◽

The Cost ◽

Focus Strategy ◽

Cost Leadership Strategy

Organizations apply two basic competitive strategies in general. These are the cost leadership strategy and the differentiation strategy. The application of any of the mentioned strategies by focusing on a smaller field in the market is called a focus strategy. Companies gain value in the eyes of customer with the strategy they choose. The aim of this study is to analyze the competitive strategies applied by the enterprises and the results of these strategies. A semi-configured interview on the entrepreneurs of two firms which open to a wider market from local market in Denizli with their own brands, was conducted. The first enterprise, which has been maintaining its existence for 80 years and has many branches in the different provinces, is a firm producing sugar and sugar products (Firm A). The second, which has been maintaining its existence for 84 years and has branches in close neighbor cities and provinces, is a firm producing soft drinks (Firm B). The common feature of both firms is that they keep their local characteristics and take their competitive power from the local people. In the research, the competitive strategies of entrepreneurs have been defined and analyzed by benefiting from the entrepreneurship stories that have been brought up to the present day. It was concluded that firm A applied differentiation strategy in the product, production process, and market, while firm B differentiated in the production process without any differentiation in the product and used the focus strategy in the market.

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The Role of Marketing Strategies in Modern Business and Society

Organizational Culture and Behavior ◽

10.4018/978-1-5225-1913-3.ch027 ◽

2017 ◽

pp. 549-576

Author(s):

Kijpokin Kasemsap

Keyword(s):

Organizational Performance ◽

Marketing Strategies ◽

Business And Society ◽

Sustainable Competitive Advantage ◽

Differentiation Strategy ◽

Segmentation Strategy ◽

Leadership Strategy ◽

Modern Business ◽

Focus Strategy

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Benchmarking CEO compensation: Developing a model for different business strategies

Corporate Ownership and Control ◽

10.22495/cocv14i1p9 ◽

2016 ◽

Vol 14 (1) ◽

pp. 96-104

Author(s):

Merwe Oberholzer

Keyword(s):

Best Practices ◽

Best Practice ◽

Ceo Compensation ◽

Business Strategies ◽

Data Envelopment ◽

Cost Leadership ◽

Differentiation Strategy ◽

Leadership Strategy ◽

Two Stages ◽

The Cost

Porter’s generic business strategies of cost leadership and differentiation were adjusted to make them applicable to CEO compensation strategies. The cost leadership strategy equates to a firm that attempts to signal that their CEO is not over paid, not reaping off much of the profits, but is compensated according to best practices. The differentiation strategy relates to a firm that believes it is important to signal that their CEO is above average and therefore should earn an above average compensation. The purpose of the study was to develop a data envelopment analysis (DEA) model with two stages. The first provides a best practice frontier to benchmark segments of CEO compensation against determiners thereof, including firm-, CEO- and governance characteristics. Firms with different strategies will then position themselves differently to the best practice frontier. Irrespective of the strategy chosen at the first stage, the second stage estimates how efficient firms are to convert the above-mentioned determiners into multiple performance measures. The contribution of the study is that employing such a model may change the philosophy of how firms look at CEO compensation, for example firms whose CEOs are at the bottom half are not necessarily below average or underpaid, but signal that their CEOs are compensated according to best practices.

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PENGARUH PEMILIHAN STRATEGI DEFERENSIASI TERHADAP KINERJA KEUANGAN1 (Studi Empiris Pada Perusahaan Manufaktur Food & Beverages terdaftar di BEI)

Jurnal Akuntansi ◽

10.24912/ja.v20i1.78 ◽

2017 ◽

Vol 20 (1) ◽

pp. 104

Author(s):

Antonius Singgih Setiawan

Keyword(s):

Financial Performance ◽

Stock Exchange ◽

Manufacturing Companies ◽

Cost Leadership ◽

Differentiation Strategy ◽

Leadership Strategy ◽

The Cost ◽

Cost Leadership Strategy

Penelitian ini bertujuan menguji apakah strategi deferensiasi akan memberikan kinerja keuangan yang lebih baik dari pada strategi cost leadership. Menggunakan 85 sampel pengamatan dari 17 perusahaan manufaktur Food & Beverages terdaftar di BEI 2009–2013, hipotesis penelitian diuji menggunakan analisis regreasi. Hasil penelitian menunjukkan bahwa perusahaan yang memilih strategi defensiasi akan menghasilkan kinerja keuangan yang lebih baik dari pada perusahaan yang menerapkan strategi cost leadership.This study aims to test whether differentiation strategy will deliver a better financial performance than cost leadership strategy. Using a sample of 85 observations of 17 Food & Beverages manufacturing companies listed on the Indonesian Stock Exchange from 2009 to 2013, research hypotheses are tested using regresion analysis. The result shows that companies that choose differentiation strategy will produce better financial performance than companies that implement the cost leadership strategy.

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Open innovation in the context of organisational strategy

Engineering Management in Production and Services ◽

10.2478/emj-2019-0023 ◽

2019 ◽

Vol 11 (3) ◽

pp. 86-95 ◽

Cited By ~ 2

Author(s):

Katarzyna Walecka-Jankowska ◽

Joanna Zimmer

Keyword(s):

Open Innovation ◽

Corporate Strategy ◽

Cost Leadership ◽

Differentiation Strategy ◽

Leadership Strategy ◽

The Cost ◽

Operational Range ◽

The Relationship ◽

Cost Leadership Strategy ◽

Innovation Processes

Abstract The paper aims to analyse the relationship between different types of corporate strategy and open innovation in the contexts of the age, size and the operational range of enterprises. The research targeted companies in Poland that were surveyed from January to April, using traditional and electronic forms of a questionnaire. The questionnaire was developed based on a 5-point Likert scale. The level of “openness” of innovation processes in an enterprise was determined according to a 3-point scale, namely, a closed innovator, a hybrid or semi-open innovator, and an open innovator. The strategy implemented by an enterprise was classed into main three types used to achieve a competitive advantage, i.e. cost leadership, differentiation or diversification. There is a strong correlation between open innovations, the cost leadership strategy and the differentiation strategy (negative correlation). The relationship between the age, size and the range of a company and the opening of innovative processes was also observed. The research aims to fill the knowledge gap existing in the literature regarding the links between a particular type of strategy and the opening of innovation processes.

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STRATEGI KOMPETITIF MELALUI PROGRAM PAHLAWAN EKONOMI DALAM PEMBERDAYAAN UMKM PASCA PANDEMI COVID-19 (Studi padaPemerintah Kota Surabaya)

Publika ◽

10.26740/publika.v9n2.p137-148 ◽

2021 ◽

pp. 137-148

Author(s):

Ayu Aldania ◽

Fitrotun Niswah

Keyword(s):

Competitive Strategy ◽

Global Economy ◽

Economic Activities ◽

Competitive Strategies ◽

Cost Leadership ◽

Differentiation Strategy ◽

Leadership Strategy ◽

Analysis Technique ◽

Collection Data ◽

The Cost

Pandemi COVID-19 berdampak pada ekonomi global dan menyebabkan resesi. Ketidakstabilan ekonomi yang disebabkan resesi mempengaruhi keberadaan UMKM. Pahlawan Ekonomi yang memberikan pelatihan dan pendampingan pada pemberdayaan UMKM dapat menjadi salah satu langkah untuk mendorong aktivitas ekonomi negara. Tujuan penelitian ini adalah untuk menggambarkan strategi kompetitif melalui Pahlawan Ekonomi dalam pemberdayaan UMKM pasca pandemic COVID-19. Metode penelitian yang digunakan adalah kualitatif dengan pendekatan deskriptif. Berfokus pada Strategi Kompetitif Generik yang dibagi menjadi tiga strategi yaitu kepemimpinan biaya, diferensiasi, dan fokus. Teknik analisis data menggunakan interaktif kualitatif, yaitu pengambilan data, reduksi data, penyajian data, serta penarikan kesimpulan. Pengumpulan data pada penelitian ini menggunakan wawancara, pengamatan, dan dokumentasi. Hasil penelitian menunjukkan bahwa strategi kepemimpinan biaya dan strategi diferensiasi efektif untuk diterapkan di Pahlawan Ekonomi dimasa pandemic COVID-19. Karena tidak hanya mempertahankan UMKM dari resesi, tetapi juga meningkatkan penjualan. Salah satu saran yang dapat diajukan adalah memberikan pelatihan yang berjenjang sesuai kondisi masing-masing UMKM. Kata Kunci: Strategi Kompetitif Generik, Pahlawan Ekonomi, COVID-19. The COVID-19 pandemic is impacting the global economy and causing a recession. Economic instability caused by recession affects the existence of MSMEs. Pahlawan Ekonomi provides training and assistance on empowering MSMEs to be one of the steps to encourage the country's economic activities. The purpose of this study is to describe a competitive strategy through Economic Heroes in empowering MSMEs after the COVID-19 pandemic. The research method used is qualitative with a descriptive approach. Focusing on Generic Competitive Strategies which are divided into three strategies namely cost leadership, differentiation, and focus. The data analysis technique used interactive qualitative, namely data collection, data reduction, data presentation, and drawing conclusions. Collecting data in this study using interviews, observations, and documentation. The results showed that the cost leadership strategy and differentiation strategy were effective to be implemented in Pahlawan Ekonomi during the COVID-19 pandemic. Because it not only defends MSMEs from recession, but also increase sales. One suggestion that can be put forward is to provide tiered training according to the conditions of each UMKM. Keywords:Generic Competitive Strategy, Economic Hero Program, COVID-19

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

Management and Accounting Review (MAR) ◽

10.24191/mar.v17i1.672 ◽

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

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