scholarly journals Competitive Strategy Analysis from Entrepreneurship Stories

2019 ◽  
Author(s):  
Şeyma Gün Eroğlu ◽  
Ayşe İrmiş
Keyword(s):  
Production Process ◽  
Local Market ◽  
Competitive Strategies ◽  
Strategy Analysis ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Cost ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Organizations apply two basic competitive strategies in general. These are the cost leadership strategy and the differentiation strategy. The application of any of the mentioned strategies by focusing on a smaller field in the market is called a focus strategy. Companies gain value in the eyes of customer with the strategy they choose. The aim of this study is to analyze the competitive strategies applied by the enterprises and the results of these strategies. A semi-configured interview on the entrepreneurs of two firms which open to a wider market from local market in Denizli with their own brands, was conducted. The first enterprise, which has been maintaining its existence for 80 years and has many branches in the different provinces, is a firm producing sugar and sugar products (Firm A). The second, which has been maintaining its existence for 84 years and has branches in close neighbor cities and provinces, is a firm producing soft drinks (Firm B). The common feature of both firms is that they keep their local characteristics and take their competitive power from the local people. In the research, the competitive strategies of entrepreneurs have been defined and analyzed by benefiting from the entrepreneurship stories that have been brought up to the present day. It was concluded that firm A applied differentiation strategy in the product, production process, and market, while firm B differentiated in the production process without any differentiation in the product and used the focus strategy in the market.

scholarly journals Competitive Strategies and Performance of Commercial Banks in Mombasa County, Kenya

2020 ◽  
Vol 2 (1) ◽  
pp. 65-74
Author(s):  
Joseph Mariga Nyachwaya ◽  
James Maina Rugami
Keyword(s):  
Commercial Banks ◽  
Target Population ◽  
Superior Performance ◽  
Successful Implementation ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Commercial banks in Kenya and especially Mombasa County are facing firm rivalry demanding the use of competitive strategies so as to improve their performance. Most of the commercial banks are deliberating on ways to enhance their performance, with competitive strategies being one of them to arrive a market and afterwards make sense of and ensure its aggressive position. Therefore, this study aimed at establishing the effect of competitive strategies on the performance of commercial banks in Mombasa County. The specific objectives were to determine the effect of cost leadership strategy, differentiation strategy and focus strategy on the performance of commercial banks in Mombasa County. The study was anchored on the theory of resource-based view, strategic balancing and game theory. A descriptive research design was employed in this study. The target population of this study was 280 commercial banks staff in Mombasa County. The sample size was eighty-four after adopting a stratified random sampling technique to select 30% of the target population. The study made use of primary data collection using questionnaires. The data was analyzed using the Statistical Package for Social Sciences (SPSS) Version 24.0 and presented using tables. The study established that despite the challenges in implementation, competitive strategies are very important for banks to remain competitive in the market. The study further concluded that understanding the market structure is a key determinant for the successful implementation of competitive strategies. Banks following a cost leadership strategy realize statistically significant superior performance compared to those that pursue broad differentiation and focus strategy which reports above-average returns. The researcher highly recommends that commercial banks consider shifting more of their focus on the cost leadership strategy in order to realize superior performance. To succeed at offering the lowest price while still achieving profitability and a high return on investment, commercial banks are recommended to operate at a lower cost than its rivals, this could be possible through some fairly unique capabilities to achieve and sustain their low-cost position. The study also recommends strategy planners to integrate and embrace the differentiation strategy which will enable them to differentiate in various methods such as new technology, brand image, design, network customer service or the number of features. Further, commercial banks are recommended to centre on the existing markets and products or services; they can create competitive edge by getting the best mix between existing products and existing markets.

scholarly journals Generic Strategies and Performance of Pharmaceutical Manufacturing Companies in Nairobi County, Kenya

2021 ◽  
Vol 3 (1) ◽  
pp. 17-35
Author(s):  
Grace Wanjiru Ngugi ◽  
Esther Gitonga
Keyword(s):  
Pharmaceutical Manufacturing ◽  
Manufacturing Companies ◽  
Differentiation Strategy ◽  
Pharmaceutical Firms ◽  
Leadership Strategy ◽  
And Performance ◽  
The Cost ◽  
Focus Strategy ◽  
Generic Strategies ◽  
Cost Leadership Strategy

Pharmaceutical industry has been facing a lot of competition both from the inside and outside the country (importers of raw materials who also manufacture finished product). A report by the Kenya Pharmaceutical Sector Profile in 2018 indicated that imports have been rising sharply and grew by more than 30% between 2017 and 2018 in other sectors but a decline from the pharmaceutical manufacturing sector which could be attributed to the low-quality pharmaceutical products. The aim of this study was to analyze the generic strategies and performance of pharmaceutical manufacturing companies in Nairobi County, Kenya. The specific objectives were to: assess the effect of cost leadership strategy, differentiation strategy and focus strategy on performance of pharmaceutical companies in Nairobi County, Kenya. The study was informed by Porter’s Five Forces Model and Resource Based View theory. The study used descriptive research design. The population of this study was all the 22 pharmaceutical manufacturing companies in Nairobi County. The target population was the managers in the pharmaceutical manufacturing companies. The study was a census of all pharmaceutical manufacturing companies in Nairobi. A structured questionnaire was used for data collection. The questionnaire was pilot tested to determine its validity and reliability. The study used primary data which was gathered from the managers. Data collected was organized in spreadsheets for the purpose of analysis. It was coded and entered in Statistical Package for Social Sciences (SPSS, Version 22.0) for analysis. Correlation and regression analysis were conducted to find the relationship between the independent and dependent variables. The study found that cost leadership strategy, product differentiation strategy and focus strategy positively and significantly influenced performance of pharmaceutical companies in Nairobi County, Kenya. The study concluded that managing the production expenses enhances business performance because of increased profit value. Also, the study concluded that using technology to automate business operations lowers the cost thus increasing profitability. In addition to that, the study concluded that providing high quality products to customers builds customer loyalty which translates to improved performance. Similarly, the research concluded that lowering prices relative to that of competitors attracts more customers leading to increased sales volume. It was recommended that pharmaceutical firms should always aim at lowering the cost of production to reap optimal profits. However, these products should meet the quality demands in the market. It was also recommended that businesses should conduct customer satisfaction surveys to bridge the niche that may be identified. This way, businesses will be able to offer the relevant products and services and gain customer loyalty which eventually leads to increased profitability. In addition, it was recommended that non price competition strategies such as product packaging should be adopted by pharmaceutical firms to increase profitability. Customers would prefer to buy uniquely packaged products as they appear appealing. Future areas of study should focus on other competitive strategies since the three generic strategies that were identified did not account for 100% of the variation in performance of pharmaceutical firms.

scholarly journals IS SMEs ABLE TO CONSTRUCT BUSINESS STRATEGY TO IMPROVE ITS PERFORMANCE USING ITS OWN ABILITY? (STUDY ON SMEs KARAWO HANDICRAFT IN CITY OF GORONTALO, INDONESIA)

2017 ◽  
Author(s):  
Ariawan ◽  
Made Sudarma ◽  
Djumahir ◽  
Ghozali Maskie
Keyword(s):  
Human Capital ◽  
Business Strategy ◽  
Capital Investment ◽  
Structural Equation ◽  
The Body ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Status: Preprint (belum di terbitkan pada Jurnal manapun)The objectives of this study were to analyze and investigate the human capital resource of SMEs to achieve the expected level of performance and to see if the quality of human capital had been appropriate enough to be able to apply certain business strategy. This study also intended to see if the cost leadership strategy, differentiation strategy, as well as appropriate focus strategy to improve the performance of SMEs. This study employed a survey design in which researcher conducted a survey to managers or owner of 68 SMEs of Karawo handicraft in Gorontalo city. This study also employed the structural equation or PLS approach using warpPLS application to analyze the data. The finding of this study showed that the ability of the human capital owned by the SMEs had not yet maximized in improving its performance. The role of the mediation business strategy (cost leadership strategy and differentiation strategy) have been appropriate and matched the ability of the human capital to improve the performance of SMEs. The result of this study enriches the body of knowledge related to the resource based theory and the development of strategic management of the human capital investment for the implementation of business strategy to achieve good performance and system. This study also offers practical benefit for managers or owners of SMEs, and government in developing the business. The data were collected using cross sectional strategy by analyzing the opinions and perception of the managers or owners of the business. Future researchers are encouraged to expand this by involving bigger number of sample and broader scope of study. Future researcher may also develop this study using mix method research design to verify and take action on the interesting result of this study related to the implementation of focus strategy based on the ability of the human capital which has been confirmed to have the highest coefficient path, yet did not have significant effect to the improvement of the performance without the involvement of mediational variables such as the combination of focus-cost strategy or focus-differentiation strategy.

International competitive strategies, organizational learning and export performance: a match and mis-match conceptualization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Henry F.L. Chung ◽  
Mia Hsiao-Wen Ho
Keyword(s):  
Organizational Learning ◽  
Market Share ◽  
Export Performance ◽  
Competitive Strategies ◽  
Content Type ◽  
Strategic Performance ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Cost Leadership Strategy

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.

scholarly journals PENGARUH PEMILIHAN STRATEGI DEFERENSIASI TERHADAP KINERJA KEUANGAN1 (Studi Empiris Pada Perusahaan Manufaktur Food & Beverages terdaftar di BEI)

2017 ◽  
Vol 20 (1) ◽  
pp. 104
Author(s):  
Antonius Singgih Setiawan
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Cost ◽  
Cost Leadership Strategy

Penelitian ini bertujuan menguji apakah strategi deferensiasi akan memberikan kinerja keuangan yang lebih baik dari pada strategi cost leadership. Menggunakan 85 sampel pengamatan dari 17 perusahaan manufaktur Food & Beverages terdaftar di BEI 2009–2013, hipotesis penelitian diuji menggunakan analisis regreasi. Hasil penelitian menunjukkan bahwa perusahaan yang memilih strategi defensiasi akan menghasilkan kinerja keuangan yang lebih baik dari pada perusahaan yang menerapkan strategi cost leadership.This study aims to test whether differentiation strategy will deliver a better financial performance than cost leadership strategy. Using a sample of 85 observations of 17 Food & Beverages manufacturing companies listed on the Indonesian Stock Exchange from 2009 to 2013, research hypotheses are tested using regresion analysis. The result shows that companies that choose differentiation strategy will produce better financial performance than companies that implement the cost leadership strategy.

scholarly journals Open innovation in the context of organisational strategy

2019 ◽  
Vol 11 (3) ◽  
pp. 86-95 ◽  
Author(s):  
Katarzyna Walecka-Jankowska ◽  
Joanna Zimmer
Keyword(s):  
Open Innovation ◽  
Corporate Strategy ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Cost ◽  
Operational Range ◽  
The Relationship ◽  
Cost Leadership Strategy ◽  
Innovation Processes

Abstract The paper aims to analyse the relationship between different types of corporate strategy and open innovation in the contexts of the age, size and the operational range of enterprises. The research targeted companies in Poland that were surveyed from January to April, using traditional and electronic forms of a questionnaire. The questionnaire was developed based on a 5-point Likert scale. The level of “openness” of innovation processes in an enterprise was determined according to a 3-point scale, namely, a closed innovator, a hybrid or semi-open innovator, and an open innovator. The strategy implemented by an enterprise was classed into main three types used to achieve a competitive advantage, i.e. cost leadership, differentiation or diversification. There is a strong correlation between open innovations, the cost leadership strategy and the differentiation strategy (negative correlation). The relationship between the age, size and the range of a company and the opening of innovative processes was also observed. The research aims to fill the knowledge gap existing in the literature regarding the links between a particular type of strategy and the opening of innovation processes.

Survival of construction SMEs in macroeconomic crises

2018 ◽  
Vol 16 (4) ◽  
pp. 654-673 ◽  
Author(s):  
Serdar Ulubeyli ◽  
Aynur Kazaz ◽  
Selim Sahin
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Competitive Strategies ◽  
Content Type ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Difference ◽  
Focus Strategies ◽  
Cost Leadership Strategy

PurposeThis paper aims to present the effect of innovation on implementing competitive strategies (CSs) and to find their relationships on the survival of construction-related small- and medium-sized enterprises (SMEs) in macroeconomic crises.Design/methodology/approachData were compiled from construction SMEs in Turkey. The research used structural equation modeling to investigate the relationships between innovation, CSs and firm survival (FS).FindingsInnovative construction SMEs may implement differentiation and focus strategies and survive without CSs, whereas innovation may be obtained through cost leadership strategy. Also, differentiation and focus strategies may play a role to survive. However, the cost leadership strategy may be implemented after survival. Finally, differentiation strategy may be triggered by innovation and focus strategies.Research limitations/implicationsThe model may be applied on other construction organizations. Future studies may also examine the difference in findings concerning other industries and regions. Moreover, different factors may be added to the model. However, a larger group of samples could cause different results.Practical implicationsThis study may be a roadmap for practitioners to plan their firms’ strategies, considering innovation, CSs and FS. In this context, they may pay attention to innovative production processes to survive.Social implicationsSurvived SMEs may sustain their works through the prevention of crisis-based unemployment. Hence, this benefit may bring a wealthier society.Originality/valueThis research is first to propose a model connecting innovation and CSs for SMEs’ survival in macroeconomic crises. This is convenient for rivalry of SMEs planning to be long-lasting enterprises.

scholarly journals STRATEGI KOMPETITIF MELALUI PROGRAM PAHLAWAN EKONOMI DALAM PEMBERDAYAAN UMKM PASCA PANDEMI COVID-19 (Studi padaPemerintah Kota Surabaya)

Publika ◽  
2021 ◽  
pp. 137-148
Author(s):  
Ayu Aldania ◽  
Fitrotun Niswah
Keyword(s):  
Competitive Strategy ◽  
Global Economy ◽  
Economic Activities ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Analysis Technique ◽  
Collection Data ◽  
The Cost

Pandemi COVID-19 berdampak pada ekonomi global dan menyebabkan resesi. Ketidakstabilan ekonomi yang disebabkan resesi mempengaruhi keberadaan UMKM. Pahlawan Ekonomi yang memberikan pelatihan dan pendampingan pada pemberdayaan UMKM dapat menjadi salah satu langkah untuk mendorong aktivitas ekonomi negara. Tujuan penelitian ini adalah untuk menggambarkan strategi kompetitif melalui Pahlawan Ekonomi dalam pemberdayaan UMKM pasca pandemic COVID-19. Metode penelitian yang digunakan adalah kualitatif dengan pendekatan deskriptif. Berfokus pada Strategi Kompetitif Generik yang dibagi menjadi tiga strategi yaitu kepemimpinan biaya, diferensiasi, dan fokus. Teknik analisis data menggunakan interaktif kualitatif, yaitu pengambilan data, reduksi data, penyajian data, serta penarikan kesimpulan. Pengumpulan data pada penelitian ini menggunakan wawancara, pengamatan, dan dokumentasi. Hasil penelitian menunjukkan bahwa strategi kepemimpinan biaya dan strategi diferensiasi efektif untuk diterapkan di Pahlawan Ekonomi dimasa pandemic COVID-19. Karena tidak hanya mempertahankan UMKM dari resesi, tetapi juga meningkatkan penjualan. Salah satu saran yang dapat diajukan adalah memberikan pelatihan yang berjenjang sesuai kondisi masing-masing UMKM. Kata Kunci: Strategi Kompetitif Generik, Pahlawan Ekonomi, COVID-19.   The COVID-19 pandemic is impacting the global economy and causing a recession. Economic instability caused by recession affects the existence of MSMEs. Pahlawan Ekonomi provides training and assistance on empowering MSMEs to be one of the steps to encourage the country's economic activities. The purpose of this study is to describe a competitive strategy through Economic Heroes in empowering MSMEs after the COVID-19 pandemic. The research method used is qualitative with a descriptive approach. Focusing on Generic Competitive Strategies which are divided into three strategies namely cost leadership, differentiation, and focus. The data analysis technique used interactive qualitative, namely data collection, data reduction, data presentation, and drawing conclusions. Collecting data in this study using interviews, observations, and documentation. The results showed that the cost leadership strategy and differentiation strategy were effective to be implemented in Pahlawan Ekonomi during the COVID-19 pandemic. Because it not only defends MSMEs from recession, but also increase sales. One suggestion that can be put forward is to provide tiered training according to the conditions of each UMKM. Keywords:Generic Competitive Strategy, Economic Hero Program, COVID-19

scholarly journals Analisis SWOT terhadap Strategi Penjualan Smartphone Xiaomi dan Vivo

2020 ◽  
Vol 3 (1) ◽  
pp. 50-63
Author(s):  
Eriana Afnan ◽  
Sam'un Jaja Raharja
Keyword(s):  
Swot Analysis ◽  
Descriptive Analysis ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Generic Strategy ◽  
Market Needs ◽  
Focus Strategy ◽  
Cost Leadership Strategy ◽  
Sales Strategies

The growth of smartphone users every year continues to grow and is a necessity for its users. Every smartphone company competes for generous consumers and competes to provide the technology and features needed by its users. This research was conducted to see a SWOT analysis of sales strategies on Xiaomi smartphones and Vivo smartphones in terms of differentiation strategy, focus strategy, cost leadership strategy. This study uses a digital use database to find articles relevant to the SWOT analysis of sales strategies on Xiaomi smartphones and Vivo smartphones. This type of research used in this research is descriptive analysis with a qualitative approach. The analysis method used is the SWOT analysis and Porter's Generic Strategy. The results showed that in total, this smartphone company had implemented the generic porter strategy well. However, the Vivo company's focus strategy is only applied so that the Vivo company can focus on marketing efforts on one or two market segments and create a marketing mix that is specific to that market so that the company can find better market needs.

How Competitive Strategies Affect Organizational Structure

2022 ◽  
pp. 271-299
Author(s):  
Muhammed Seyda Akdag ◽  
Yasemin Bal
Keyword(s):  
Technology Development ◽  
Organizational Structures ◽  
Competitive Strategies ◽  
Senior Managers ◽  
Cost Leadership ◽  
Leadership Strategy ◽  
The Cost ◽  
Focus Strategies ◽  
The Relationship ◽  
Cost Leadership Strategy

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.

Sign in / Sign up

Export Citation Format

Share Document