Cost Leadership Research Articles

The Strategic Path Behind the Success of China’s Typical Internet Intelligent Terminal Manufacturing Enterprises: A Case Study Based on Xiaomi

Xiaomi has become the world’s third largest mobile phone seller in just four years after its establishment has brought us both surprise and reflection. Theoretical and practical studies seem to indicate that traditional theories can no longer explain Xiaomi’s success. This article will reveal the strategic management factors behind Xiaomi’s success through a multi-level analysis of the enterprise’s internal and external environment, strategic positioning, strategic thinking and strategic pattern. These analyses will also provide us with hints of Xiaomi’s hidden risks. The study found that Xiaomi seized the opportunity of the Times to quickly capture a large market share through its cost leadership strategy. It has consolidated and expanded its market and achieved corporate growth through a diversification strategy in the last decade or so. The two strategies achieved a natural convergence and co-existence, intertwining to create Xiaomi’s success. However, Xiaomi does need to make progress in two areas to avoid incoherent and unsustainable implementation of the strategy. Moreover, it is necessary to ensure quality control and high-cost performance, and create more of its own “unique activities”. Further development of its artificial intelligence and independent system might be a good way forward.

The Role of Intellectual Capital in Moderating the Effect of Competitive Advantage on MSME Performance

This study aims to examine the role of Intellectual Capital in moderating the effect of Competitive Advantage on MSME Performance. Resource-Based View Theory (Barney, 1991) and Porter's Strategic Generic Theory (1980) underlie this research. Primary data was collected using a survey method of 100 MSME managers throughout Bali. The data analysis method used is to use a structural model equation approach with the help of SmartPLS 3.0 software. The results showed that the cost leadership strategy, differentiation strategy and intellectual capital had a significant positive effect on the performance of MSMEs. However, intellectual capital is not able to moderate the effect of cost leadership strategy, differentiation strategy on MSME performance in Bali.

The Role of Material Flow Cost Accounting (MFCA) in Implementing the Cost Leadership Strategy and Rationalizing Operational Decisions (An Applied Study in the Baghdad Soft Drinks Company)

Thecurrentresearch aims to address the knowledge bases of material flow cost accounting (MFCA) and determiningits role in implementing the cost leadership strategy and rationalizing operational decisions in a way that is compatible. The research was applied in theBaghdad Company for Soft Drinks for data for the year 2020. The current research concluded possibility applicationmaterial flow cost accounting (MFCA) in the research sample company, as the company was divided into quantity centers and calculating costs for each center with regard to the costs of materials, energy, system and waste management. The research concluded that the application (MFCA) can help in implementing a cost leadership strategy and rationalizing operational decisions.

Increasing Order Fulfilment of Spare Parts in WIS and AS/RS Warehouse in PT. KTK Using Operational Excellence to Enhance Competitive Advantages

The research is focused on the inventory storing process and used both generic and thematic framework to gain a better understanding from both perspective between business environment and the operational environment that currently occurred in PT. KTK. Competitor analysis, 7Ps marketing mix, and SWOT analysis are used to gain an understanding of the internal and external situation of PT. KTK and to compare PT. KTK with its competitors. On the operational sides, operational excellence is used to gain a better understanding and formulate a potential solution to improve the existing order fulfillment of PT. KTK. DMADV methodology from Six Sigma is used to gain a better understanding, measure the related metric, analyze the problem, providing a solution design, and implementing the solution in the existing warehouse process in PT.KTK. To align the operational strategy with PT. KTK business strategy, Porter’s Generic Strategy is used to gain and decide the best strategy for them. And the result, PT. KTK should focus on cost leadership by improving the effectiveness and efficiencies of their warehouse process enhance competitive advantages. Lastly, after the implementation is conducted and the result is observed, the solution can improve the order fulfillment of PT. KTK warehouse by 52.5%.

Effect of Cost Leadership Strategy on The Performance of Seed Companies in Trans Nzoia County, Kenya

The study aimed at establishing the effect of cost leadership strategy on performance of seed companies in Trans Nzoia County. Implementation of the findings and recommendations of the study would be of significant to several stakeholders for instance, they would aid the government in guiding the policy framework that would enhance sustainable seed production hence national development. The study was anchored on the contingency theory and theory of Mintzberg’s 5Ps of Strategy. This study used a survey design as it assumed quantitative methods in data collection. The target population consisted of the functional heads and the employees of the five seed crop companies in Tran Nzoia a total of 553 respondents. The sample of the study was 232 respondents. The primary data was collected through questionnaires. The sample of the study was 232 respondents. The primary data was collected through questionnaires as the secondary data was collected through literature review. Prior to the commencement of data collection, the study obtained all the necessary documents, including an introduction letter from the University which will necessitate application for a permit from the National Commission for Science Technology and Innovation (NACOSTI). Respondents were then supplied with tools of data collection through the departmental heads, given time to respond to them and return them to their department heads for onward collection. Quantitative data gathered from closed ended questions were first coded and then analyzed descriptively and using inferential statistics and presented using frequency distribution and cross tabulation tables. The study found a positive and significant relationship between cost leadership strategy and organizational performance at the seed companies in Trans Nzoia County. The correlation results showed a positive and significant association between cost leadership and performance. The study concludes that there is a positive and significant relationship between production strategy and organizational performance. The study recommends that companies should have a good market research and understanding on what the critical cost factors customers appreciate and value in their product then only focus on them

COMPETITIVE STRATEGY THROUGH SUPPLY CHAIN MANAGEMENT ON PHARMACY INSTALLATION: COMPARISON STUDY IN TWO HOSPITALS

Service-based business competition in hospitals can be achieved through cost leadership strategies without putting aside patient safety, differentiation strategies aims to differentiate themselves uniquely from competitors and focus strategies by targeting specific markets. The strategy series are 50% more influenced by the performance of Supply Chain Management at Pharmacy Installation. The purpose of this study is to evaluate the implementation of strategy and performance with the research subjects of the Hospital Type D Pharmacy Installation. The method of weighting the Analytical Hierarchy Process (AHP) was used to analyse the priority of strategy and performance assessment processed using the Objective Matrix (OMAX) method. The Supply Chain Operation Reference (SCOR) model is applied as a Key Performance indicator (KPI) with financial ratio data as a support for internal performance. The position of subject in competition and performance improvement benchmarks is seen through benchmarking with competitor of type C Hospital. Results of analysis show that the priority cost leadership strategy is supported by the AHP weighting cost of good sold 34.4% but the best performance is obtained from the order fulfillment cycle time 26.51%. Performance evaluation should be used by targets approaching competitor levels. The conclusion of this study, Hospital competing strategies can be obtained through synchronization of Supply Chain Management strategies and actual performance of Pharmacy Installation

Food and Beverage Business Development Strategy at Time Depot to AET Surabaya

The more advanced era and changes in human life patterns cause human needs to change, especially primary needs, one of which is food and drink. The food and beverage industry is very developed and varies in terms of prices and types. From that, business competition in the culinary field is very tight and affects the food and beverage industry from producers to consumers. This research was conducted to find out how the right business development strategy uses internal environmental analysis from the perspective of resources, remote external & industry, enhanced by a business plan. The study used primary qualitative data from the object of research and secondary from literature studies obtained through interviews and documentation. Followed by data reduction, data presentation, and ended with data verification. Data analysis used triangulation validity test and member check for validity. The result of this research is a change in strategy to focus on specific market niches accompanied by a simple business plan that replaces the cost leadership strategy that has been proven to have been implemented so far by the object of research.

Pengaruh Cost Leadership Dan Differentiation Strategy Terhadap Citra Produk PT. Asuransi Bumi Putra 1912

The results of the contemporaneous test between the Cost leadership Strategy and Isolation contemporaneously on Product Image, contemporaneously0.745 therefore there's a strong positive relationship the results of the direct retrogression test Y = 7.8950.647 X10.133 X2 the test results show the pure value of the image variable of7.895 while the donation of the Cost leadership variable is0.647 and the donation of the isolation variable is0.133 therefore the donation value of Costleadership is more dominant than the isolation variable, the results of the thesis test show Fhitung29.259> Ftabel also( Ha) is accepted with ρ = 0.000< α = 0.05 so it can be concluded that Costleadership and Isolation contemporaneously

Vốn đầu tư nước ngoài tác động đến QTCT và ảnh hưởng tới hiệu quả kinh doanh của các doanh nghiệp niêm yết trên sàn chứng khoán thành phố HỒ CHÍ MINH

The study aims to examine foreign ownership on firm performance through the mediating role of corporate governance. In addition, the study determines the moderating role of business strategy on the relationship between foreign ownership and firm performance. The research data of 128 companies listed on the Ho Chi Minh stock market is collected through Thomson - Reuters DataStream and financial reports published over the years from 2017 to 2019. The results proved that foreign ownership has a negative impact on firm performance through the mediating role of corporate governance. Similarly, business strategy (measured by cost leadership strategy) has a negative impact on the relationship between foreign ownership and firm performance, however, business strategy (measured through product differentiation strategy) is the opposite. The results of the study provide empirical evidence and suggest policies for corporate administrators and State management agencies.

The impact of business strategy and annual report readability on financial reporting quality

Purpose This study aims to mainly explore the impact of business strategy and annual reports readability on financial reporting quality in Tehran Stock Exchange (TSE). Design/methodology/approach The sample comprised 160 companies listed in TSE from 2014 to 2020. Five proxies (including two accounting-based attributes and two market-based attributes) were used to measure financial reporting quality. In this study, cost leadership and differentiation strategies were considered and Fog index was used to measure the annual report readability. Findings The results showed that in all methods of calculating financial reporting quality, cost leadership strategy, differentiation strategy and annual report readability had a positive and significant impact on financial reporting quality. Also, only at the high level of the differentiation strategy, the annual reports readability influenced financial reporting quality. In addition, at all levels of high and low annual report readability, cost leadership strategy affected financial reporting quality, but only in companies with a high annual report readability, the differentiation strategy affected financial reporting quality. Only for companies with a low readability, the annual report readability affected financial reporting quality. Originality/value To the best of the authors’ knowledge, no study had examined the impact of business strategy and annual report readability on financial reporting quality at the core of the present study. Furthermore, little was known about the strategic choices made in Iran. So, the research filled this gap in TSE. This study provided insights for policymakers to enhance the readability and reduce the complexity of annual reports.

Cost Leadership Strategy and Differentiation Strategy Mediate the Effect of Entrepreneurship Orientation on the Performance of Batik Lendah SMEs

Batik SMEs in Lendah District are facing business challenges during the pandemic. The challenge is the decline in sales of batik cloth. The decline in sales of batik cloth has an impact on the performance of Batik SMEs in the Lendah District. Performance is the achievement of specified organizational goals. The purpose of this research is to look at cost leadership strategies and differentiation strategies as a mediation of entrepreneurial orientation and performance in Batik Lendah SMEs, Kulon Progo. This research includes quantitative research with a survey method to 55 owners/managers of Batik SMEs in Lendah District. Data collection using a questionnaire and analyzed using SmartPLS 3.0. The results show: 1) entrepreneurial orientation had a significant positive effect on performance, 2) entrepreneurial orientation had a significant positive effect on cost leadership strategy, 3) entrepreneurial orientation had a significant positive effect on a differentiation strategy, 4) cost leadership strategy had a significant positive effect on performance, 5) differentiation strategy has a significant positive effect on performance, 6) entrepreneurial orientation and performance can be mediated by the application of cost leadership strategy, 7) entrepreneurial orientation and performance can be mediated by differentiation strategy.

SMEs Halal Culinary Strategy During The Pandemic Era In South Tangerang

The aim of this study is to see and to analyze what type of business strategies should be implemented to the halal-certified culinary SMEs named “Nasi Kebuli Bang Moch.” This study uses mixed-method approaches, equipped with its descriptive analysis. The measuring tool used is a SWOT analysis (strengths, weaknesses, opportunities, threats), through the "Internal-External" weighting step, then equipped with a "Four-Step Strategy", in order to be able to determine the most efficient and effective strategy needed. In addition, to the strengths of its company and to achieve the expected sustainable business management, due to the result of the study which shows several weaknesses to be able to capture opportunities while at the same time dealing with threats, digital marketing and product variant innovation, becomes inevitable. Furthermore, its "cost leadership strategy" that had previously been implemented, must be maintained. To sum up, Nasi Kebuli Bang Moch halal SMEs business can continue to be sustainable, by adapting all developments of digital world businesses as well as its product innovation, at any situation and condition.

When Does It (Not) Pay to Be Good? Interplay Between Stakeholder and Competitive Strategies

Using the instrumental stakeholder theory lens, we examine how generic competitive strategies influence the link between stakeholder management (SM) and firm financial performance. We develop a framework that highlights the synergistic effects of a differentiation strategy on SM but also the trade-offs between a cost leadership strategy and SM in their consequences for financial performance. We test our theoretical mechanism further by distinguishing between primary and secondary stakeholders, who differ in their degree of firm specificity and instrumentality. We propose that for firms pursuing a low-cost competitive advantage, secondary SM intensifies the trade-offs between SM and financial performance when compared with primary SM, whereas both primary and secondary SM are likely to improve financial performance for differentiators. Empirical analyses using a panel data set of S&P 500 firms over a 15-year period (2005–2019) and a series of robustness tests support our predictions. Our findings highlight important boundary conditions for SM's impact on firms’ financial performance and highlight not only “when SM pays” but also “when SM may not pay.”

Impact of Competitive Strategy on Corporate Governance in Companies Listed on Vietnam’s Stock Market

In this study, we explores the relationship between competative strategy and corporate governance through the analysis of 562 non-financial companies listed on the Vietnam’s stock market in 2010-2019, thereby making judgments about competitive strategies to determine which strategy has a meaningful impact on corporate governance. It is found that a cost leadership strategy has a negative impact on corporate governance, and a differentiation strategy has a positive impact on corporate governance. In addition, our study provides evidence for further studies in this field and suggests some possible solutions for investors and regulators in Vietnam.

Impact of Competitive Strategy on Corporate Governance in Companies Listed on Vietnam’s Stock Market

In this study, we explores the relationship between competative strategy and corporate governance through the analysis of 562 non-financial companies listed on the Vietnam’s stock market in 2010-2019, thereby making judgments about competitive strategies to determine which strategy has a meaningful impact on corporate governance. It is found that a cost leadership strategy has a negative impact on corporate governance, and a differentiation strategy has a positive impact on corporate governance. In addition, our study provides evidence for further studies in this field and suggests some possible solutions for investors and regulators in Vietnam.

The Mediating Effect of The Choice Of Competitive Strategy On The Relationship Of SMA Information Usage and Firm Performance

We investigated the matching relationship between the SMA information usage and the choice of competitive strategy based on the contingency theory, and tested the matching results through firm performance. In other words, we examined the mediating role of the choice of competitive strategy on the relationship between the SMA information usage and firm performance. The study collected data from 172 Chinese manufacturing firms by questionnaire and analyzed the data through PLS-SEM. Through the analysis results we found that when the product-related information usage and customer-related information usage matched with the choice of differentiation strategy, the firm was able to obtain better performance. In addition, the study found that the choice of cost leadership strategy mediated the relationship between the competitor-related information usage and firm performance, as well as the relationship between the use of product-related information and firm performance. This study provides suggestions for Chinese manufacturing managers to use SMA information for strategic decision making, at the same time, demonstrates the link between competitive strategy and SMA.

ROLE OF LEARNING CAPABILITY IN THE RELATIONSHIP BETWEEN COMPETITIVE STRATEGIES AND BUSINESS PERFORMANCE: A REVIEW DURING THE COVID-19 PANDEMIC PERIOD

The goal of this study is to reveal the mediating role of learning capability in the relationship between competitive strategies and business performance and to expand and to contribute to the literature in this field. In line with this purpose, a theoretical framework investigating the role of mediation effect has been put forward and hypotheses have been developed. Within the scope of the theoretical framework, previous literature has been reviewed. A quantitative study was performed for the analysis of the developed hypotheses, the data obtained from 137 companies within the ISO 500 companies list were used through the scale used, and the analysis results were obtained. Considering the findings obtained from the results collected during the Covid-19 Pandemic, although there is no relationship between cost leadership, one of the competitive strategies, and business performance, a strong relationship has been determined between differentiation and business performance. When we examine the mediating effect of learning capability in the relationship between these concepts, it has been revealed that learning capability does not have a mediating effect on the relationship between cost leadership and business performance, on the other hand, learning capability has a mediating effect on the relationship between differentiation and business performance. Based on the findings achieved at the end of the study, some suggestions for researchers were presented regarding mediating role of competitive strategies, business performance effects and learning capability in the changing environment with the Covid-19 pandemic process.

Competitive Strategies on Performance of Petroleum Companies Moderated by Tax Policy in Kampala, Uganda

The main purpose of this study was to assess competitive strategies and performance of petroleum companies in Kampala, Uganda. Specifically, the objective was to assess how cost leadership strategy influences the performance of petroleum companies in Kampala. The research adopted a cross sectional research design and applied both qualitative and quantitative research approaches. A sample size of 73 respondents comprising of heads of different departments and petrol station employees in selected fuel companies was chosen to take part in the study. The study applied questionnaire and interview guide research instruments to collect the data and information needed. The data was analysed using SPSS version 20 to determine the multiple regression model and Pearson Correlation coefficient analysis was used in the data analysis. The results showed that there is a significant and positive relationship between cost leadership strategy and performance of petroleum companies (r = 0.763, p˂0.05) and the regression coefficient estimate of the interaction term is 0.767 with t = 8.642, p <.001. Therefore, tax policy is a significant moderator for the relationship between competitive strategies and performance of petroleum companies in Kampala. Keywords: Crude oil, petrol, competitive strategies DOI: 10.7176/EJBM/14-12-06 Publication date: June 30 th 2022

Competitive Strategies and Performance of Selected Non-Governmental Organizations in Nairobi County, Kenya

This research explored if and how competitive strategies affect NGO performance and the main objective was to assess contribution of generic strategies on NGO performance using Porter’s competitive strategies typology. A descriptive research targeting a population of 1, 252 NGOs from which 125 respondents were selected was employed. In each of these organizations, a questionnaire was administered to a department manager using the Internet. The regression analysis revealed positive effects of focus and differentiation strategy on NGO performance while cost leadership had no effect. The study recommends that in order to succeed in cost leadership strategy, NGOs require availability of capital needed to make investments in creation of resources and this can be achieved by innovative means to gain funding. It is also recommended that NGOs should seek to provide services in areas that are less populated and regions that they can provide differentiation or low-cost services for their beneficiaries. NGOs should design services and products to target client base that have a special need that is distinct from other products and services. This investigation focused on NGOs in Nairobi City County; further research is needed to focus on NGOs in other counties. The study found that there were positive effects of focus and differentiation strategy on NGO performance. This means there is need for further research on strategic effects on NGO performance in much more detail.

The key to scaling in the digital era: Simultaneous automation, individualization and interdisciplinarity

ABSTRACT In this paper, we develop a theoretical framework that explains how digital technologies can help small businesses generate competitive advantages for scaling. To gain and sustain competitive advantages, small businesses traditionally had to choose between cost leadership and differentiation strategies. Digital technologies enable small businesses to reduce their costs and at the same time enhance the value of their market offerings through differentiation. The aim of this paper is to explain the role of digital technologies in such hybrid strategies for small businesses. We first identify automation, individualization and interdisciplinarity as the three dimensions of digital technologies that together enable technology-driven firms to gain and sustain competitive advantages and to scale rapidly. Second, we integrate these three dimensions into a theoretical framework. Third, we test and confirm the theoretical framework in an explanatory case study and discuss the results.