cost leadership
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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 13 (4) ◽  
pp. 5-24
Author(s):  
Rizwan Raheem Ahmed ◽  
Dalia Streimikiene ◽  
Xiaosong Zheng

The purpose of this research is to evaluate the impact of proactive environmental strategy, competitive differentiation advantage & cost-leadership competitive advantage for the competitive, sustainable development of an organization in terms of its performances, for instance, product strategy, production, process & financial performances. We incorporated technological eco-innovation as a mediating factor & corporate image as a moderator between exogenous & endogenous variables. We have collected 798 responses from China, India, Pakistan, Bangladesh, United Arab Emirates, and Vietnam. For the data analyses, we employed a structural equation modeling-based multivariate approach and conditional process modeling. The novelty and significance of the undertaken study rested in multifaceted outcomes; for instance, the proactive environmental strategy, the competitive advantage of differentiation & competitive advantage of cost leadership have a significant & positive impact on the sustainable development of an organization in terms of its performances, for example, product strategic, production & financial performances. The findings further demonstrate that technological eco-innovation as a mediating factor & corporate image as a moderating factor played vital and significant influencers between exogenous and endogenous variables. Finally, the Toda- Yamamoto causality showed the two-ways directionality between exogenous & endogenous variables. The outcomes have provided critical practical and societal implications for the industry and society. The companies may incorporate the environment as a cornerstone in short & longterm strategies for sustainable development. On the other hand, organizations may provide an eco-friendly environment to society.


Author(s):  
Perwitasari Yekti Mumpuni ◽  

Consumer goods industry have tight a competition in the market. Therefore, companies that operate in this kind of industry should continuously improve sustainable competitive advantage. The strategy to increase competitive advantage is not through innovation but also requires cost leadership so that the company obtains an adequate profit margin. One of the efforts to gain cost leadership is that companies need to choose between make inhouse production or buy goods directly from appointed third party supplier. This study based on qualitative research methodology aims to discuss the important factors for building a business case on the make or buy options. Data for analysis purpose are obtained from interviews with individuals representing one of the leading multinational companies operating in Indonesia that produces personal care, hygiene and home care. Interviews results are written in transcript, coded and mapped to illustrate the keywords mentioned by respondents then being categorized as important factors or not. The result of the study showed that cost, capability, capacity, quality, service level and technology are important factors on consideration make or buy. Cost factor also consider projection volume, transportation and investment.


2021 ◽  
Vol 5 (4) ◽  
pp. 45-56
Author(s):  
Frederic Karangirwa ◽  
◽  
Eugenia Nkechi Irechukwu ◽  

The purpose of this study was to examine porter’s generic strategies and market share growth of Skol Brewery in Rwanda. The specific objectives were to: determine effect of cost leadership, differentiation, and market focus on market share growth of Skol Brewery in Rwanda. The target population consists of 287 staff members of Skol Brewery Ltd. The study used simple random and purposive sampling techniques to select a sample of 167 employees. Quantitative data was obtained using questionnaire while a documentary checklist was used to obtain secondary data. Descriptive and inferential statistics were used for quantitative data analysis while content analysis was used for qualitative analysis. Results on cost leadership show a tight cost in all business activities (mean of 4.333), economies of scale (mean of 3.666), and efficient cost saving for designs (means of 4.000) and effective operational cost reduction (mean of 3.666) were used as a cost leadership component. A positive correlation was found between cost leadership and sales (r=231**, p=0.006), investment rise (r=.159**, p=0.043) and profit margin (r=.174**=0.014).Results on differentiation felt that cost allocated to the control of quality of goods and services (mean of 4.333), effort in reputation management (mean of 4.000), names (mean of 4.833). A positive correlation was between differentiation and sales (r=.274**, p=0.039), investment rise (r=.187, p=0.035) and profit margin (r=.324, p=0.032).Results on market focus found that marketing specification for products (mean of 3.833) is the measurement that has the highest level of application. A positive correlation was between market focus strategy and sales (r=.854**, p=0.018), investment (r=.873**, p=0.035) and profit margin (r=.750**, p=.0.036). The study concludes that there is no significant relationship between porter strategies and market share growth. The study recommends that management of the brewery company should evaluate implementation of cost leadership, conduct a study on market focus to respond to market niches as any gap in customer centric products would yield customer non responsiveness, benchmark differentiation, and hire competent staff to achieve its success. Keywords: Porter’s Generic Strategies, Cost Leadership Strategy, Differentiation Strategy, Market Focus Strategy, Market Share Growth


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.


Author(s):  
Sulastri Irbayuni ◽  

Organizational performance plays an important role as a measure of the success of an organization or company. To achieve this success, organizational performance is influenced by many factors, including environmental uncertainty and business strategy that has been implemented by the organization. The airline industry in Indonesia is in a high competitive condition and faces environmental uncertainty challenge with the gain of tight margin. The researches on the most suitable business strategy choice for airline in the midst of environmental uncertainty condition in order to obtain organizational performance have not been many examined in Indonesia. This study aims to determine the effect of environmental uncertainty and business strategy on organizational performance of Garuda Indonesia. Based on the research finding, it was known that the environmental uncertainty could affect positively on business strategy that has been implemented by the organization, for strategy choices of cost leadership, focus orientation, or differentiation. But, it turned that only the differentiation strategy which was able to affect positively the organizational performance. The conclusion of test result referred that the Indonesian airline in the midst of a very dynamic environment was demanded to be able to offer a unique and different product and service from other competitors and deliver the higher value to the customers, so it could achieve a good organizational performance.


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.


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.


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