cost leadership strategy
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2022 ◽  
Vol 2 (1) ◽  
pp. 25-36
Author(s):  
Ety Liani Putri ◽  
Bosker Sinaga

Untuk dapat memenangkan persaingan pasar, perusahaan menggunakan strategi pemasaran yang tepat agar dapat bertahan dan memenangkan pasar. Perusahaan yang baru berkembang perlu menyusun aturan layanan pemasaran untuk keberlanjutan perusahaan yang mampu bersaing secara mutu maupun kualitas. Sebagai perusahaan e-commerce yang baru berkembang PT. Prisma Mas Semesta memerlukan strategi pemasaran yang mampu membantu pengambil keputusan agar dapat memperkenalkan produk maupun jasa pada masyarakat. Metode yang digunakan untuk menganalisis penentuan strategi pemasaran barang menerapkan metode Analytic Hierarchy Process. Data penelitan dikumpulkan dari perusahaan penjualan barang online PT. Prisma Mas Semesta website duniadapur.co.id. Dalam menentukan strategi pemasaran barang terdapat 6 kelompok kriteria yaitu Managerial Capabilities, Customer Linking Capabilities, Market Innovation Capabilities, Human Resource Assets, Capabilities In Product Distribution, dan Reputational Assets. Berdasarkan perhitungan metode AHP, nilai Eigen kriteria dan alternatif diperoleh hasil perangkingan yaitu Differentiation Strategy memiliki nilai preferensi 0.59 sebagai Ranking 1, Cost Leadership Strategy memiliki nilai preferensi 0. 274 sebagai Ranking 2, dan Market Segmentation Strategies nilai preferensi sebesar 0.136 sebagai Ranking 3. Dapat disimpulkan bahwa alternatif yang berada di peringkat atas adalah Cost Leadership Strategy dengan nilai 0.59. Dalam strategi ini Dunia Dapur berusaha menekan biaya produksi, sehingga laba bersih dapat menguntungkan yang akan meningkatkan angka penjualan dan market share.


2022 ◽  
pp. 271-299
Author(s):  
Muhammed Seyda Akdag ◽  
Yasemin Bal

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.


2021 ◽  
Vol 4 (1) ◽  
pp. 191-197
Author(s):  
MUHAMMAD ILYAS ◽  
IHTESHAM KHAN ◽  
MUHAMMAD NISAR KHAN

Organizations concentrate to maximize their value. Therefore, their management are interested in their financial performance. However, management is also interested in minimization of the operational cost. This study examines the cost leadership strategy (CLS) and financial performance in a sample of 132 textile sector firms listed on the Pakistan stock exchange (PSX) during 2008-2016. For analyses used panel data random effect model and the results demonstrate that CLS significantly and positively affect the financial performance of textile sector listed firms of Pakistan. Moreover, control variables such as leverage and dividend payout ratio are significantly affect organizational performance. Finally reveals that study supports the theoretical association of return on assets with independent and control variables. Hence, recommended to follow the CLS to reduce operational costs further and to perform efficiently in the competitive market.


2021 ◽  
Vol 6 (3) ◽  
pp. 44-56
Author(s):  
Edwin Kubai ◽  
Patrick Karanja ◽  
Allan Kihara

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.


Author(s):  
Durgham Ahmed Abdul Ridha ◽  
Prof Dr Manal Jabbar Soror

The principal objective of this study is to demonstrate how green quality management and product life cycle costing may help an organization gain a competitive advantage. Green quality management's influence on increasing product quality and meeting environmental criteria, as well as tracking the activities of product life cycle before, during, and after production, is demonstrated. Orienting these activities toward the production of eco-friendly products that fulfill the needs of customers, hence increasing organization's market share. We found from our study that proposed framework can help organizations improve their competitiveness. Green quality management contributes to environmental protection and the provision of high-quality products that fulfill needs and desires of green customer, enhancing product differentiation. Product life cycle costing is to determine costs of environmental activities and seek to minimize those costs, which translates to lower product costs, allowing organization to adopt a cost leadership strategy and gain a competitive advantage.


2021 ◽  
Vol 12 (2) ◽  
pp. 79-95
Author(s):  
Suwindha Idhastari

This study aims to determine the effect of company strategy proxied by­ cost leadership strategy, differentiation strategy and investment opportunity set, and company characteristics proxied by company size, managerial ownership structure, institutional ownership structure and audit quality on earnings quality in manufacturing companies listed on the Indonesia Stock Exchange 2015-2019. The population in this study were 175 companies with a total sample size 37 compenies. The method used in determining the number of samples in purposive sampling. Regression analysis in this study using multiple linier regression. The result of this study indicate that the cost leadership strategy, investment opportunity set, managerial ownership structure, and institutional ownership structure have no effect on earnings quality. Meanwhie, the differentiation strategy, company size and audit quality have an effect on earnings quality. The result of multiple liniear regression analysis showed an adjusted R2 value of 0,342. This shows that the level of reletionship between the variable cost leadership strategy, differentiation strategy, investement opportunity set, company size, managerial ownership, institutional ownership, and audit quality on earnings quality is 34,2% and the remaining 65,8% is explained by other variables in beyond the research model.


2021 ◽  
Vol 17 (23) ◽  
pp. 296
Author(s):  
Paul G. Kimiti ◽  
Stephen M. A. Muathe ◽  
Elishiba M. Murigi

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Henry F.L. Chung ◽  
Mia Hsiao-Wen Ho

Purpose This study aims to examine the effects of international competitive strategies, i.e. cost leadership and differentiation, on export (market share and strategic) performance. This study further explores the roles of exploitative and exploratory organizational learning in the relationships between international competitive strategies and export performances. To fill research gaps, this study intends to provide guidance on how varied exploitative/exploratory organizational learning and cost leadership/differentiation strategy combinations would affect export performance. The outcomes of this study provide a new match and mis-match conceptualization to extant international competitive strategy and organizational learning literature. Design/methodology/approach This study selected New Zealand (NZ) exporting as the research setting because exporting plays such a vital role in NZ’s economy and NZ exporting firms have long been highly competitive in international markets (e.g. meat and dairy exporters), with the primary data collected through surveys conducted in 2010 and 2013. This study adopted a three-year lagged performance approach. Findings Cost leadership strategy has a positive effect on market share performance. This effect is enhanced by exploitative learning but dampened by exploratory learning. Cost leadership also has a positive effect on strategic performance, which is not affected by exploitative and exploratory learning. Differentiation strategy bears no relation to market share and strategic performance, even allowing for exploitative and exploratory learning. Collectively, the contingent role of organizational learning in the international competitive strategies and export performance framework is far more comprehensive than was expected. Research limitations/implications This study reveals that a match between cost leadership strategy and exploitative learning may result in a superior market share. The configuration of differentiation strategy and exploitative learning and the integration of cost leadership strategy and exploratory learning are suggested as mis-matches, as these combinations would not lead to any significant and positive market share and strategic performance. Unexpectedly, the co-alliance of differentiation strategy and explorative learning is not suggested as a match, as it does not result in a superior market share and strategic performance. This latter outcome suggests that the differentiation strategy-export performance link may be stimulated by other moderating factors (e.g. business managerial ties). Practical implications While choosing an appropriate international competitive strategy, managers may use cost leadership over differentiation strategy to achieve successful export performance in both the market share and strategic perspectives. Export managers focusing on cost leadership strategy may further implement exploitative learning instead of explorative learning, when market share is vital. Meanwhile, they may note that explorative learning may not have a moderating effect on enhancing strategic performance through cost leadership. These points signify that exploitation of existing knowledge may be more effective than exploration of new knowledge for market share expansion when cost leadership strategy is devoted to exporting activities. Differentiation strategy, however, does not influence market share and strategic performance in exporting, even with an alignment of exploitative/exploratory learning. Managers are urged to pay attention to the mis-match of differentiation strategy and organizational learning when market share and strategic performance are the priorities in export performance evaluation. Originality/value This study contributes to the organizational learning literature by providing a new match and mis-match conceptualization relating to international competitive strategy and export performance. The new framework provides directions on when firms should use organizational learning to enhance their competitive strategies (a match scenario) and when they should not use it (a mis-match scenario). This study broadens the existing research that has mainly focused on alignment combinations such as organizational learning-internationalization strategy and organizational learning-social network.


Author(s):  
Fitri Ayu Santri ◽  
La Ode Saafi ◽  
La Ode Kamalia

Background: A hospital in Kendari  is tracing the problems namely about interactions with employees. Also the information about the strategies which is used to improve hospital performance has not been clearly stated. The efforts to improve services are still relatively routine in nature. The use of strategic terms is still relatively traditional, so the strategic position of this hospital is unclear. The purpose of this study is to analyse the relationship between the cost leadership strategy and the quality of health services in Kendari City Hospital.  Methods: This research is quantitative study with a cross sectional approach. The research location was in  the Kendari City Regional Hospital and was conducted from February to March 2021. The population was 456 people and a sample of 95 people was all employees of the Kendari City Regional Hospital. The sampling technique used the Proportive Random Sampling. Results: There is a relationship between Cost leadership strategy with Service Quality, it is known that the value of chi square ( X2 count is greater than X2table, and a value of Phi is  0.239 or  it lies between 0.20-0.399. This  means that there is a weak relationship. Conclusion: Offensive Strategy or Growth is a strategy that is recommended to improve the quality of services in the Kendari City Regional Hospital.


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