Cost Leadership Research Articles

The Role of Environmental and Social Innovations in the Cost Leadership Strategy, Value Creation, and Business Performance: A Comparative Analysis of SMEs and Large Manufacturing Companies

The Role of Environmental and Social Innovations in the Cost Leadership Strategy, Value Creation, and Business Performance: A Comparative Analysis of SMEs and Large Manufacturing Companies

국제 환경 변화에 따른 동아시아 해운 기업의 경영 전략 연구

This study aims to present the strategic direction of domestic shipping companies by comparing and analyzing the management strategies of representative Korean, Chinese, and Japanese East Asian shipping companies that are competitive in the frequently changing shipping industry. As a research method, literature research and case studies were conducted. The results of this study are as follows. First of all, most East Asian shipping companies were found to be adopting both a cost leadership strategy and a strategic partnership strategy, but as seen in the cases of Japanese and Chinese companies, it is also considered a strategy worth considering to solidify the position of the shipping industry by choosing a centralized strategy that provides more reliable maritime transport services to specific customers. Next, a common problem among shipping companies was found to be low punctuality. To solve this problem, introduce a logistics system that optimizes ship operation routes using big data analysis and provide customer support from ship and cargo schedule inquiries to real-time tracking. It appears that a differentiated strategy is needed to provide all transportation-related services.

The competitiveness of Romagna wineries. An exploratory analysis of the impact of different strategic approaches on business performance

This paper proposes an exploratory study of the competitiveness of Romagna wineries. A double approach has been adopted to analyse it, as both Porter’s Theory of Competitive Advantage and Barney’s Resource-based Theory have been considered. The final purposes are to uncover which categories of resources and capabilities are related to firm performance and to investigate the main strategic orientations of the most successful Romagna wineries. To conduct the research, an online questionnaire was sent to 115 wineries located in the Romagna territory, achieving a response rate of about 24.35%. According to the preliminary results, it has been found that the most successful wineries in this area do not follow a cost leadership strategy, while they perform a differentiation strategy. These firms put a lot of effort into building a reputation in the market. On the other hand, managerial and technological capabilities seem to be not positively related to firm performance, while marketing capabilities exert a stronger impact. This study would give an input to the strategic and managerial studies in the wine business sector, and adopt an innovative theoretical approach in the analysis of competitive advantage. Moreover, this work focuses on the Romagna territory, fulfilling the need for research that considers the local wine industry and its competitiveness, to open the way to further studies.

Nike's Operational Strategy Analysis and Financial Analysis Based on the Value Chain and Porter's Five Forces Model

This article helps to understand Nike's financial and operational situation. Firstly, the author conducted a value chain analysis of Nike and realized that Nike's core competitiveness lies in technology development and marketing. Then, an analysis was conducted on Nike's cost leadership strategy and differentiation strategy, and the advantages and disadvantages of Nike's were proposed. Secondly, based on the Porter Five Forces model, an analysis was conducted from five aspects: the threat of new entrants, the bargaining power of suppliers, the bargaining power of customers, the threat of substitutes, and industry competition. The fourth part conducts a ratio analysis of Nike Company. The author referred to its competitor Adidas and analyzed Nike's strengths and weaknesses by comparing its 2022 profitability ratios. Based on the above analysis, the author believes that Nike, as a leading enterprise in the sports industry, has maintained a positive development trend even after being hit by the epidemic. This article points out the shortcomings and areas worth learning from in Nike's production and operation activities and puts forward suggestions for other companies.

Strategy and performance of audiovisual streaming platforms

Purpose: This work aims to analyze and classify the competitive strategies of 37 streaming platforms and identify which strategic groups perform better globally. Design/methodology/approach: This study is based on the structure-conduct-performance paradigm and uses Porter's typology to reach its goal. It classified the 37 platforms into their respective strategic groups based on eight strategic variables using k-means cluster analysis. Then, group performances were compared using ANOVA to test the mean differences of two performance variables. Originality/relevance: The audiovisual industry is experiencing a radical change in content consumption, distribution, and production. Streaming technology, which delivers content over the internet without downloads, increased flexibility and sparked a wave of adoption of audiovisual streaming platforms that destabilized other sectors, such as home video. Consequently, this phenomenon left a gap in studies about the strategy and performance of the industry, which this paper intends to fill. Main findings: As a result, 14% of the platforms studied were allocated to the Differentiation strategic group, 30% to Cost Leadership, 19% to Differentiation Focus, 8% to Cost Focus, and 30% were considered Stuck-In-The-Middle. We identified that the strategic groups present significant differences in performance, validating the applicability of Porter's typology. Theoretical contributions: The study found that broad-spectrum strategies such as Cost Leadership and Differentiation promote better performance than focus strategies at this industry stage. Surprisingly, Stuck-In-The-Middle companies also perform well, similar to companies with broad-spectrum strategies.

PENGARUH STRATEGI BISNIS TERHADAP KINERJA USAHA KECIL KULINER KEMASAN: SISTEM PENGENDALIAN MANAJEMEN SEBAGAI VARIABEL MODERASI

This study investigates the relationship between business strategy and small culinary enterprise performance. Besides, this study also examines the role of management control systems as moderating variables between business strategy and the performance of small enterprises. Thirty small culinary enterprises are participating in this study. This study uses the primary data collected through a survey. There are three types of variables in this study: dependent variable (performance), independent variables (business strategy) and moderating variables (management control system). Small Enterprise performance has twelve items. Business strategy is divided into two variables: cost leadership strategy and differentiation strategy and these variables have seven items each. Like business strategy, a management control system (MCS) also has two types of variables: diagnostic MCS and interactive MCS. These variables have five items for each. This study uses the structural equation model (SEM-PLS) by applying smart-pls. The result shows that only one hypothesis was accepted: a significant positive relationship between cost leadership strategy and small enterprise performance. Theoretically, this study contributes to the resources-based theory. This finding can be used to improve small enterprise performance by implementing a low-cost strategy

Competitive strategy and organizational performance: a systematic literature review

PurposeThe purpose of this paper is to provide an organizing lens for viewing the distinct contributions to knowledge production from those research communities addressing the impact of competitive strategy on company performance in general, and the influence of cost leadership and differentiation strategy on organizational performance in detail.Design/methodology/approachThe research methodology was based on the PRISMA review, and thematic analysis based on an iterative process of open coding was analyzed and then the sample was analyzed by illustrating the research title, objectives, method, data analysis, sample size, variables and country.FindingsThe main factor that influenced the competitive strategy is strategic growth; strategic growth has a significant influence on competitive strategy. Furthermore, competitive strategy will boost firm network, performance measurement and organization behavior. In the same way, the internal goal factor will enhance organizational effectiveness. Also, a differentiation strategy will support management practice factors, strategic positions, product price, product characteristics and company performance.Originality/valueThis study contributes to the literature by identifying a framework of competitive strategy factors, company performance factors, cost leadership strategy factors, differentiation strategy factors and competitive strategy with global market factors. This study provides a complete picture and description of the resulting body knowledge in competitive strategy and organizational performance.

Competitive Strategies on Organizational Growth of Manufacturing Firms in Kenya

Relationship between competitive strategies and organizational growth of manufacturing firms has gain credence globally. Manufacturing firms Japan has recorded greater success in manufacturing sector globally due to their ability to adopt various competitive strategies that has aided them to achieved sustained competitive advantage. However, manufacturing industry in Kenya has experienced decline over the last five years. Manufacturing sector GDP contribution in Kenya has reduced in 2016 first quarter to KES 118,134 from KES 113,460 million 2016 second quarter. Therefore, this study sought to examine the influence of effect of competitive strategies on the organizational growth of manufacturing firms in Kenya. The specific objective was to examine the influence of cost leadership strategy on organizational growth among manufacturing firms in Kenya, to examine influence of differentiation strategy on organizational growth among manufacturing firms in Kenya, to examine influence of focus strategy on organizational growth among manufacturing firms in Kenya and to examine influence of product innovation strategy on organizational growth among manufacturing firms in Kenya. The study was guided by generic strategy theory, competitive advantage theory, resource based view theory, open systems theory and organizational growth theory. Survey research design was used covering a stratified sample of 189 firms drawn from the 454 manufacturing firms distributed across the 12 key industrial sub-sectors. The researcher used multi-stage sampling technique. In the first instance, stratified sampling technique was used to classify each of the 12 sub-sectors into individual strata. The sample then selected using simple random sampling technique from each of the stratum. Questionnaires were used to collect data. The statistics generated was descriptive statistics which included frequencies and percentages and inferential statistics which included a multiple linear regression. A multiple linear regression model was used to show the relationship between the dependent and independent variables. A pilot study was conducted in order to establish the validity and reliability of the questionnaire. In this study, the questionnaire was tested on 10% of the sample to ensure that it is relevant and effective. The subjects participating in the pilot study included in the final study to avoid survey fatigue. From the study findings, majority of the respondents agreed that competitive strategies are implemented by manufacturing firms in Kenya in which cost leadership strategy and differentiation strategy was mostly implemented. The study revealed that cost leadership strategy had a strong positive correlation with organizational growth. The study established that differentiation strategy plays a significant role on organizational growth. The regression analysis results indicated that differentiation strategy had a statistically significant influence on the organizational growth. The study established that focus strategy had a significantly strong positive relationship with the organizational growth, since a unit improvement in the product innovation strategy was likely to result to an improvement in the organizational growth. The regression analysis results indicated that product innovation strategy had a statistically significant influence on the organizational growth. The study also concluded that all the independent variables (cost leadership strategy, differentiation strategy, focus strategy and product innovation strategy contribute significantly to organizational growth. Based on the findings, study recommended that manufacturing firms do adopt the use of differentiation strategy in their business processes. Managers should focus on good cost management practices in addition to setting low interest rates to derive competitiveness.

Impact of Competitive Strategies on Market Entry and Growth in Emerging Economies in Japan

Purpose: The study sought to analyze the impact of competitive strategies on market entry and growth in emerging economies in Japan
 Materials and Methods: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library
 Findings: the study on competitive strategies in emerging economies in Japan revealed that cost leadership strategies facilitated successful market entry, while differentiation strategies promoted long-term growth. Strategic alliances with local firms were crucial for overcoming barriers, and early entry provided a competitive edge. Adapting strategies to Japan's unique cultural and regulatory context was deemed essential for success in emerging markets.
 Unique Contribution to Theory, Practice and Policy: The study recommends fosters a win-win scenario where foreign firms can thrive, and the host economy benefits from increased investments and job opportunities. Developing local talent and transferring knowledge to the local workforce is crucial for long-term growth. Both firms and governments should invest in skill development programs and knowledge transfer initiatives. Firms should prioritize hiring and training local talent, while governments can incentivize such efforts through grants and tax incentives. This practice-policy collaboration ensures that emerging economies can benefit not only from the capital but also from the knowledge and expertise brought by foreign firms.

Balanced Scorecard and Competitive Strategies of Small and Medium Manufacturing Organizations

The competition between Jordanian Small and Medium Manufacturing Enterprises (SMMEs) and imported products from foreign countries especially from China is increasing, so Jordanian SMMEs have to use different strategic tools to be able to compete with imported products. Therefore, this research purpose is to explore the effect of using a Balanced Scorecard (BSC) as a strategic tool on Jordanian SMMEs’ competitive strategies. The study uses a quantitative descriptive and cause-effect approach, and it is cross-sectional research. Exactly 120 managers and owners from 100 SMMEs completed a questionnaire. Then questionnaires were checked and coded against SPSS. The results show that implementing the BSC affects the competitive strategies of Jordanian manufacturing SMMEs, where the BSC has assigned the greatest weight to the focus strategy, the cost leadership strategy, and finally the differentiation strategy. Moreover, the customer perspective has the highest impact on competitive strategies, then the financial perspective, followed by the learning and growth perspective, and finally the internal processes perspective. This article illustrates how using a BSC is essential to measure and manage organizational performance via analyzing weaknesses and strengths, which helps to achieve competitive strategies. Therefore, owners and managers should use BSC as a strategic tool before setting strategic goals and objectives to achieve a competitive strategy. Finally, this research will help managers and owners of SMEs to improve their competitive position compared to foreign companies.

Influence of Generic Strategies on Student Attraction by Church Based Schools in Kenya (A Case Study of CITAM Schools)

Purpose: This study focused on assessing the influence of generic strategies on student attraction by church-based schools in Kenya with a case study of Christ Is the Answer Ministry schools. It is guided by the subsequent definite objectives; to determine the influence of Cost leadership strategy, focus strategy and Differentiation strategy on student attraction by church-based schools in Kenya.
 Methodology: The study has used descriptive cross-sectional design. The management personnel and teachers were the target population for the exercise which were limited to ten schools owned by CITAM. Primary data was collected using semi-structured questionnaires containing both open ended and close ended questions. The questionnaires were to be administered through a drop and pick method. Qualitative analysis was done on the information collected from the results of the questionnaires. Quantitative analysis includes descriptive statistical technique. Descriptive statistics compliments the use of frequencies, mean and percentages that was summarized and presented using tables, graphs and charts. The data was analysed with the aid of a linear regression model from an SPSS analysis tool.
 Findings: The study established that differentiation strategy and focus strategy had a positive and influence on student attraction by church based schools in Kenya as shown by beta values of 0.983 and 0.364 and significant values of 0.000 and 0.000 respectively. This bears the implications that increasing aspects either differentiation strategy or focus strategy with one unit results to increase in the levels of on student attraction with respective beta units. Cost leadership strategy on the other hand had a negative influence on student attraction by church based schools in Kenya as shown by a beta value of -0.002. On differentiation strategy, the study recommends prioritizing technological leadership is crucial in creating a modern and innovative learning environment that resonates with the preferences of contemporary students, enhancing customer care should be a central focus for church-based schools to create a supportive and nurturing educational community and expanding market share is essential in reaching a broader audience and establishing the school's unique value proposition within the educational landscape.
 Unique contribution to theory, practice and policy: On focus strategy, the study recommends, prioritizing targeted market segmentation is essential in catering to the unique needs and preferences of specific student groups, the focus on academic performance should remain a central priority in enhancing student attraction to church-based schools and strategic media advertisements play a crucial role in raising awareness and visibility of the unique educational offerings and values-based learning environment offered by church-based schools.

DESIGN OF BUSINESS MODEL INNOVATION FOR POWER PLANT OPERATION AND MAINTENANCE SERVICES USING DESIGN THINKING METHOD


 
 
 Power generation business competition in Indonesia is increasingly competitive due to the growth of IPP’s with better levels of reliability and efficiency. IPP growth with the TOP scheme in PJBTL has the potential to burden PLN and the state's finances in the long term. In order to guarantee the sustainability of the company, this needs to be a concern of PLN and its subsidiary, PLN Nusantara Power (PLN NP). PLN NP is expected to be able to provide more competitive O&M service fees. This study aims to formulate cost efficiency O&M services based on factors that affect the cost of supplying electricity, to provide efficient and competitive O&M service costs. The research began with the in-depth interviews with experts and reports of electricity supply, O&M service business processes, list of power plant units which were analyzed using the design thinking method, and supported by the cost leadership and blue ocean strategy. The results of the analysis obtained from this study have been validated by experts, in the form of proposed formulations that are studied comprehensively, and are able to solve O&M service cost problems by implementing a cost leadership strategy through changes to return on investment schemes, use of local workforce, appointment schemes directly, as well as the transfer of 3rd party contracts. This research proves that the proposed formulation is able to support O&M service cost efficiency of 9.5%.
 
 

Operating Cost Efficiency to Increasing Net Profit of F&B Department at Hotel Indigo Bali Seminyak Beach

On 2019 and 2022, a year before and after the Covid-19 pandemic, indicates fluctuating conditions in net profit and increasement in operational costs of F&B Department Hotel Indigo Bali Seminyak Beach. This writing aims to present a solution to reduce operational costs and increase the percentage of net profit. The method used is assistance in implementing cost leadership and the EOQ (Economic Order Quantity) approach in price break cases. By implementing cost leadership strategy and EOQ (Economic Order Quantity) in price break cases, the F&B Department of Hotel Indigo Bali Seminyak Beach will get optimal order quantities and the best prices from suppliers, reduce operational costs, and set lower selling prices.

중장년 창업의 창업성과 결정요인에 관한 질적연구

This study analyzed the content validity of the determinants of entrepreneurial performance of senior startup, including their entrepreneurial characteristics, business strategy, market environment, policies and support, and obtained the following research results. Four factors, including entrepreneur characteristics, business strategy, market environment, and policy and support, were extracted as determinants of entrepreneurial performance for senior startups. According to the results of the content validity analysis, among the entrepreneur characteristic factors of senior startup, the content validity ration of start-up readiness was the highest, while the content validity ratio of the entrepreneur's strategic orientation was the lowest. Among the business strategy factors of senior startup, the content validity ratio of differentiation strategy was the highest, while the content validity ratio of cost leadership strategy was the lowest. Among the market environment factors for senior startup, the content validity ratio of industry outlook was the highest, while the content validity ratio of competition intensity was the lowest. Among the policy and support factors for senior startup, the content validity ratio of financial support was the highest, while the content validity ratio of space and production facilities was the lowest. Looking at the implications and limitations of this study, the theoretical implications regarding the determinants of entrepreneurial performance of senior startup emphasized the importance of qualitative research reflecting senior startup. While most of the existing studies on the determinants of entrepreneurial performance of senior startup have been conducted based on quantitative research, future research will focus on qualitative research or mixed research to reflect the characteristics of senior startup. It is proposed to carry out. Looking at future research directions according to the limitations of this study, the limitations of the study include securing the homogeneity of the survey sample, operational definition and measurement of variables, and design of the research model in the process of limited discussion of the determinants of entrepreneurial performance of senior startup. and should be supplemented in future research.

Generic strategic positioning and organizational configurations in private micro-clinics

By linking concepts and ideas from the private health services (PHS) and Knowledge-Intensive Business Services (KIBS) literature with Porter's generic framework, this paper aims to identify the competitive positioning at a micro-clinic level in the private health services industry and to examine the perceived role of the institutions and intellectual capital associated with each one. A Qualitative Comparative Analysis (QCA) was used.The results show that organizational configurations are associated with proactivity when competing via differentiation. In contrast, cost leadership is linked to firms that compete with low tariffs and a defensivearchetype. Our work can serve as a basis to recommend specific competitive strategies for thehigh number of firms still following a stuck-in-the-middle positioning strategy.

Influence of Corporate Cost Leadership Strategies on Organizational Performance among Mobile Service Providers: A Comparative Analysis of Safaricom Plc and Airtel (K) Ltd in Kenya

The study objective was to comparatively determine the influence of corporate cost leadership strategies on the organizational performance of Airtel and Safaricom. The study applied quantitative approach, used positivism paradigm, and adopted correlational research design. The target population was 235 managerial staff of Safaricom and Airtel and used a census approach. The data was collected using questionnaires and secondary data collection sheets for the period 2013 to 2022. Descriptive statistics and multiple regression analysis were used to analyze the data. Tables and figures were used in the presentation of the data. From the correlation analysis, corporate cost leadership strategies (r=0.283, p<0.05) were established to be positively correlated to performance of mobile service providers in Kenya. The study concluded that cost leadership strategies aid in optimizing costs, offering competitive prices based on customer numbers, and diligently curtailing operating expenses and thus affecting performance of mobile service providers. The study recommends that mobile service providers continually refine operational efficiency. Regular evaluations of processes can uncover inefficiencies that, when streamlined, lead to significant cost reductions.

Cost Leadership Strategy and Performance of Registered Small And Medium Food And Beverage Manufacturing Firms in Nairobi County Kenya.

Small and medium manufacturing firms play an integral part in revenue generation in Kenya’s economy and as avenue for employment opportunities for unemployed Kenya youths. With globalization and current economic trends in the market, many of the manufacturing firms face fierce competition that hinders their growth potential. This presents a need for these firms to adopt Cost Leadership Strategy to help them cut a niche the industry. Therefore, this research aimed at determining the influence of Cost Leadership Strategy on performance of small and medium food and beverage manufacturing firms in Nairobi County. This study was grounded on Competitive Advantage theory. The research used descriptive design and targeted 18 registered small and medium food and beverage manufacturing firms in Nairobi County. Simple random sampling was used to select the sample in conjunction with purposive sampling technique to ensure only respondents with desired information were selected in the study. Structured questionnaire was used to collect primary data. Data collected was analyzed using statistical packages for social sciences (SPSS) version 28 and presented in tables, charts and graphs. Multiple linear regressions model was used to establish the relationship between the independent variables and the dependent variable of the study. Findings showed that cost leadership, positively and significantly influence performance of small and medium size food and beverage manufacturing firms in Nairobi County with beta coefficient values ranging from 0.524 respectively. As a result, the researcher determined that Cost Leadership Strategy examined in the study had a substantial impact on the performance of SMEs in Nairobi County. Furthermore, the researcher recommended that SMEs' management should adopt Cost Leadership Strategy in order to meet their performance targets. The study also suggests that further research be conducted to examine policy implications on the adoption of Cost Leadership Strategy in Kenyan manufacturing SMEs, as the current study was mainly oriented towards the adoption of Cost Leadership Strategy and the subsequent influence on their performance.

The Role of Competitive Strategy and Green Supply Chain Management in MSME Performance

This study investigates the role of competitive strategy and green supply chain management (GSCM) in the performance of Micro, Small and Medium Enterprises (MSMEs) in West Java. Using a sample of 87 MSMEs, data was collected through questionnaires distributed to various MSMEs in the West Java region, using a Likert scale for response evaluation. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) through the Smart PLS program.The results of this study indicate that both competitive strategy and GSCM have a significant influence on MSME performance. Competitive strategy, which includes product differentiation, cost leadership, and market focus, has improved the operational efficiency, market responsiveness, and competitive advantage of MSMEs. Meanwhile, the implementation of GSCM, which emphasizes environmentally friendly operations and sustainable resource management, not only improves compliance with environmental regulations but also strengthens the reputation and legitimacy of MSMEs in the eyes of stakeholders and consumers. These findings confirm the importance of adopting and integrating innovative and sustainable business practices to improve MSME performance. Consequently, this study suggests the need for more strategic policy interventions and support for MSMEs to develop their capacity in competitive strategy and GSCM, thereby strengthening their position in the market and their contribution to the regional economy and environmental sustainability

Supply Chain Collaboration Strategies and Sustainable Competitive Advantage of Packaged Water Producing Companies in Rivers State

This study focused on supply chain collaboration strategies and sustainable competitive advantage packaged watercompanies in Rivers State. A correlational study was structured to test four (4) hypotheses stated for the study. The survey research method was employed for the study on a population comprised 47 packaged water companies in Rivers State. The simple random technique was used to identify three personnel each from the 47 companies to obtain 141 respondents for the study. A 5-point likert-scale questionnaire was administered to 141 respondents, of which 100 (70%) were returned and used for the analysis. The study adopted descriptive statistics and Pearson’s Product Moment Correlation method for data analysis. The results revealed that supply chain collaboration strategies has a moderate, positive and significant relationship with organizational responsiveness and cost leadership. The study therefore, concludes that, supply chain collaboration strategies significantly relates with sustainable competitive advantage of packaged water companies in Rivers State, and recommends amongst others that, management of packaged water firms should key in effectively to supply chain collaboration strategies programs that do drive their companies towards positive and creative sustainable competitive advantage through organizational responsiveness and cost leadership. Key Word: Packaged water producing companies Supply chain collaboration strategies

Prospects of Cost Leadership Strategy for Tourism Performance: Are Cost-Reduction Techniques a Solution?

Tour operators are critical in Kenya's multi-billion-dollar tourism industry, a vital pillar of the country's economic development agenda. However, recent statistics indicate that tourism performance has declined due to various factors, including political and security unrest, bureaucratic government policies, stiff competition, and the COVID-19 pandemic. Additionally, the emergence of sharing economy platforms such as Airbnb has threatened the traditional business model of tour operators. At the same time, a 16% value-added tax on sales has also put pressure on their revenues. In addressing these challenges, this paper examined how tour operators in Nairobi City County can enhance their performance by implementing a cost leadership strategy in Kenya. A descriptive survey study was conducted with 15 company owners and 210 managerial staff. The respondents answered structured questionnaires and interviews, and the data were analyzed using descriptive and inferential statistics. Correlation analysis revealed a moderate positive relationship between cost leadership strategy and organizational performance (r=0.449, P<0.05), rejecting the null hypothesis, with the strategy explaining 20.2% of the variation in performance (=0.378, P<0.05). The study recommends that tour operator companies adopt strategic alliances with the supply chain, implement operational efficiency frameworks, entirely automate their services, and follow cost-reduction mechanisms to enhance organizational performance. These findings guide tourism stakeholders, particularly company executive teams, on the organizational performance implications of strategic cost-reduction techniques in the context of Nairobi City County's tour operator industry. Keywords: Cost Leadership Strategy, Organizational Performance, Nairobi City County, Tour Operators, Tourism, COVID-19