scholarly journals INFLUENCE OF COST LEADERSHIP STRATEGY ON PERFORMANCE OF THE INSURANCE COMPANIES IN KENYA

2021 ◽  
Vol 6 (3) ◽  
pp. 44-56
Author(s):  
Edwin Kubai ◽  
Patrick Karanja ◽  
Allan Kihara
Keyword(s):  
Design Method ◽  
Insurance Companies ◽  
Primary Data ◽  
Unique Contribution ◽  
Market Segment ◽  
Cost Leadership ◽  
Leadership Strategy ◽  
Maturity Period ◽  
The Cost ◽  
Cost Leadership Strategy

Purpose: The study sought to determine the influence of cost leadership strategy on performance of the insurance companies in Kenya. Specifically, the study aimed at establishing the influence of price of premiums, maturity period, market segment and nature of products. Methodology: The study adopted the descriptive research design method to ascertain and describe the characteristics of the variables. A sample size of 55 insurance companies was reached, and a semi-structured questionnaire was used to collect primary data from the respondents. Data was analyzed using the SPSS software, from which appropriate findings were presented. Findings: The study findings showed that the cost leadership strategy was largely applied in the insurance companies in Kenya, and most of them have realized great performance. Nonetheless, the study found that most insurance companies’ distribution channels for products are moderately entrenched and hence firms may not have been perfectly efficient in reducing associated costs. Unique Contribution to Theory, Practice and Policy: The study recommends that insurance firms should devote more resources to execution of cost leadership programs, adoption of effective premium pricing, and enhanced use of proprietary technology in enhancing the products’ quality. The study as well recommends that insurance forms should come up with effective strategies that will help them to gain a large market segment in Kenya in order to enhance their performance, as this will effectively help them in overcoming competition in their industry.

scholarly journals The Effects of Government Regulation and Distinctive Capability on the Cost Leadership Strategy to Drive the Business Performance of Minimarket Chain

2021 ◽  
Vol 2 (1) ◽  
pp. 40-47
Author(s):  
Hans Harischandra Tanuraharjo
Keyword(s):  
Business Performance ◽  
Government Regulation ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Cost Leadership ◽  
Leadership Strategy ◽  
Analysis Design ◽  
The Cost ◽  
Cost Leadership Strategy

The minimarket competition in Indonesia is very tight and dominated by the two largest minimarket chain, Indomaret and Alfamart. This study aims to examine the effects of government regulation and distinctive capability on the cost leadership strategy and its implications for the business performance of minimarket chain in Indonesia. It is based on empirical gap, not based on theoretical gap. The variables of distinctive capability and cost leadership strategy are relevant to the competitive advantage and sustainability. The method is explanatory survey, and the data is analyzed quantitatively on primary data. The unit of analysis is a minimarket chain in Indonesia. Time horizon is a cross section (one shoot). The populations are all minimarket chain companies in Indonesia which has the same set of characteristics amounted to 20. The analysis design used in this study is Partial Least Square. The coverage of samples under 100 respondents is very valid to use PLS. The results showed that cost leadership strategy dominantly was influenced by ownership of distinctive capability and was supported by government regulation. Cost leadership strategy has the most influence in directly increasing business performance. Government regulation and distinctive strategy can directly improve business performance, but the effect is smaller when compared to indirect effects through the cost leadership strategy. The findings of this study have implications for the management that efforts to improve business performance rely on the development of a cost leadership strategy, which is built on ownership of distinctive capability and adaptation of government regulation. Cost leadership strategy is suitable to be applied in this industry because of its hypercompetitive market structure. In addition, government regulations have a significant impact on the retail industry's strategy in Indonesia

scholarly journals Competitive Strategy Analysis from Entrepreneurship Stories

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.

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

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.

scholarly journals Open innovation in the context of organisational strategy

2019 ◽  
Vol 11 (3) ◽  
pp. 86-95 ◽  
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.

What generic strategies do private fitness centres implement and what are their impacts on financial performance?

2020 ◽  
Vol 10 (3) ◽  
pp. 317-333
Author(s):  
Elsa Vieira ◽  
João Ferreira
Keyword(s):  
Financial Performance ◽  
Return On Assets ◽  
Content Type ◽  
Cost Leadership ◽  
Leadership Strategy ◽  
Industry Leadership ◽  
Combined Strategy ◽  
The Cost ◽  
Generic Strategies ◽  
Cost Leadership Strategy

PurposeThe purpose of this paper is to identify the strategies that private fitness centres implement and to evaluate their impact on financial performance.Design/methodology/approachBased upon a sample of 151 private fitness centres in Portugal, multivariate statistics report the implemented strategies and their effect on financial performance. We applied exploratory factorial analysis as our methodology to identify the types of strategy and the ANOVA in order to verify if there are differences of financial performance in the strategies.FindingsThe results obtained demonstrate how private fitness centres implement different strategies, including: cost leadership, differentiation, focus, quality of service, combined and stuck in the middle approaches. The relationship between strategies and financial performance, private fitness centres adopting a cost leadership strategy obtain the best financial performance levels in terms of the sales variable relative to any other strategy but with the combined strategy returning a better performance in terms of the return on assets when compared with the cost leadership strategy.Originality/valueThe originality of this paper stems from its identification of the strategies implemented by private fitness centres, thus, just what type of strategies are in effect across the fitness industry: leadership through cost, differentiation or a focused strategy. However, in addition to ascertaining just which strategies undergo implementation, it is also pertinent in determining just which strategy drives the best financial performance for private fitness centres given that private centres may only remain in the market when achieving financial sustainability. Therefore, this paper seeks to provide information for managers as regards the strategies implemented and their impacts on the financial performance of private fitness centres.

scholarly journals The Impact of Competitive Strategy on Profitability in the Context of COVID-19: A Case Study of McDonald’s

2021 ◽  
Vol 235 ◽  
pp. 03005
Author(s):  
Han Ma
Keyword(s):  
Competitive Strategy ◽  
Strategic Positioning ◽  
Cost Leadership ◽  
Leadership Strategy ◽  
The Cost ◽  
Corporate Profits ◽  
The Impact ◽  
Cost Leadership Strategy ◽  
Positive Effect

In the context of the outbreak of COVID-19, public life and corporate profits have been influenced greatly. This paper takes McDonald’s as the case study object to explore the impact of competitive strategy on corporate profitability. Through investigation, it is found that McDonald’s profitability and operation are generally good due to its accurate competitive strategic positioning. However, under the impact of COVID19, the profit is slightly weak. Therefore, the paper helps clarify the concept that a reasonable competitive strategy has a positive effect on the profitability of enterprises. At the same time, this paper puts forward some views on the implementation of the strategy for the enterprises that take McDonald’s as the typical one to implement the cost leadership strategy. Besides, this paper also makes an appropriate extension on how enterprises should respond to such crisis situations as COVID-19 at the level of competitive strategy, which provides a new way for enterprises to get through the crisis.

How Competitive Strategies Affect Organizational Structure

2022 ◽  
pp. 271-299
Author(s):  
Muhammed Seyda Akdag ◽  
Yasemin Bal
Keyword(s):  
Technology Development ◽  
Organizational Structures ◽  
Competitive Strategies ◽  
Senior Managers ◽  
Cost Leadership ◽  
Leadership Strategy ◽  
The Cost ◽  
Focus Strategies ◽  
The Relationship ◽  
Cost Leadership Strategy

Organizational structures can change according to the strategy determined by the businesses. The purpose of this chapter is to extend that research by analyzing the relationship between Porter's competitive strategies and Burns and Stalker's structure types. The authors conduct their research on the enterprises in Technology Development Zones in Istanbul, Turkey. One hundred sixty of 5,506 enterprises participated in the research. Then, to search deeper, the authors conducted a qualitative research on the 25 enterprises in Technology Development Zones. Results show that, while the mechanical structure tendency is observed in the enterprises following the cost leadership strategy, the mechanical or organic structure tendency is not observed in the enterprises following the differentiation and focus strategies. Also, according to the interviews, results show that the organizational structures in the enterprises in Technology Development Zones are affected by the size of the organization or the strategic awareness level of the senior managers rather than the competitive strategies.

scholarly journals ANALISIS VALUE CHAIN DALAM UPAYA PENINGKATAN COMPETITIVE ADVANTAGE

2020 ◽  
Vol 27 (2) ◽  
pp. 238
Author(s):  
Ratna Christiana Dewi
Keyword(s):  
Competitive Advantage ◽  
Value Chain ◽  
Value Chain Analysis ◽  
Cost Leadership ◽  
Analysis Process ◽  
Leadership Strategy ◽  
Chain Analysis ◽  
The Cost ◽  
Cost Leadership Strategy

Introduction: This study aims to identify primary activities in the value chain analysis process to increase competitive advantage (competitive advantage) in order to support the cost leadership strategy of East Java Youth Lodging in order to survive and win with other tourist lodges and inns in Surabaya.Methods: This research uses a qualitative approach with the method chosen is a case study, while the type of this research is exploratory research.Results: The result of this research is that East Java Youth Lodging still has the opportunity to develop and compete in facing business threats because the Youth Lodging currently has a cost leadership strategy. East Java Youth Lodging as one of the accommodation services that offers cheaper prices with services and facilities that are no less than tourist lodges and other inns in Surabaya.Conclusion: Through the indication of primary activities with the value chain analysis process identified cost drivers that create opportunities for cost reduction, especially in logistics, so that the reduction in costs can be used as an increase in competitive advantage for East Java Youth Lodging.

scholarly journals Strategic Competitiveness and Corporate Performance of Paints Manufacturing Companies Quoted in Nigerian Stock Exchange

2021 ◽  
pp. 17-26
Author(s):  
Oyakhire Victor Alaba ◽  
Ofobruku Sylvester Abomeh ◽  
Akpoyibo Gregory Akpobome
Keyword(s):  
Corporate Performance ◽  
Stock Exchange ◽  
Design Method ◽  
Manufacturing Companies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
And Performance ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Corporate organizations all over the world are continually faced with volatile business conditions, competitive market environments and rapid technological change. Most organizations focus on survive and also find better ways to improve their performance. This study examined the effects of strategic competitiveness on the performance of quoted paints manufacturing companies in Nigerian stock exchange. The research used the descriptive research design method. The study investigated the relationship between cost-leadership strategy, differentiation strategy, focus strategy and performance of companies. This research applied the theory of dynamic capability. The data was collected from one hundred and eighty-seven (187) respondents, these includes directors, management staff and senior staff of the six paint companies quoted in Nigeria. The results showed that a strategic competitiveness (cost leadership strategy, diversification strategy and focus strategy) have a significant impact on corporate performance. These findings reinforce the need for paint manufacturing companies to adopt strategic planning in capitalizing on differentiation strategy, train their staff to gain competitive advantage knowledge and ensure their competitive survival.

Sign in / Sign up

Export Citation Format

Share Document