Abstract

In order to support the ability of business people to face all the challenges of increasingly fierce competition, many strategies must be prepared. Competitive strategy is able to affect the overall performance of the corporation in order to win the competition. The purpose of this research is to prove the outcome of Competitive Differentiation Strategy, Cost Leadership Strategy and Focus Strategy on Corporation Performance either simultaneously or partially. This research was conducted on sub-division corporation retail listed on the Indonesia Stock Exchange for the 2017-2019 period. The quantitative research used as methodology in this research, using 21 research samples over a period of three years so that 63 samples are obtained. The results showed that Differentiation, Cost Leadership, and Focus simultaneously had a significant out come on NPM. Partially, differentiation has a positive outcome on NPM, while Cost Leadership and Focus have no significant out come on NPM.

Highlights

  • Free competition in the era of globalization ASEAN economic community (MEA) requires every business to prepare many strategies to outperform the increasingly tight business competition

  • The examination methodology in this investigation is a contextual analysis and the unit of investigation utilized is to dissect at an authoritative level, in particular retail sub-division organizations recorded on the Indonesia Stock Exchange (IDX) from 2017 to 2019

  • Depend on the partial test results in table 9, it shows that the differentiation strategy has an outcome on the net profit margin (NPM) of retail sub-division companies in 2017 - 2019

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Summary

Introduction

Free competition in the era of globalization ASEAN economic community (MEA) requires every business to prepare many strategies to outperform the increasingly tight business competition. The selection of the right competitive strategy is driven by the many depositions of a number of industries due to the inability of businesses in competing. This is in accordance with the opinion (Kuntjoroadi and Safitri, 2011) that the management of the corporation must be able to determine the competitive strategy that will be used in order for the corporation to survive so that this strategy is able to overcome the strength of the business environment for the benefit of the corporation. When the relationship between principle and agent can be controlled, the corporation's performance will be much better

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