Comparing Cost Leadership Strategy with Differentiation Strategy towards Firm Performance on Jakarta Islamic Index

The research aimed to examine the effect of cost leadership strategy and differentiation strategy on company’s performance. It was conducted in companies listed in the Jakarta Islamic Index from 2014 to 2018. Purposive sampling was used to obtain samples from 12 companies. Analysis was done by multi...

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Main Authors: Surono surono, Tulus Suryanto, Erike Anggraini
Format: Article
Language:English
Published: Bina Nusantara University 2020-03-01
Series:Journal the Winners
Subjects:
Online Access:https://journal.binus.ac.id/index.php/winners/article/view/5963
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author Surono surono
Tulus Suryanto
Erike Anggraini
author_facet Surono surono
Tulus Suryanto
Erike Anggraini
author_sort Surono surono
collection DOAJ
description The research aimed to examine the effect of cost leadership strategy and differentiation strategy on company’s performance. It was conducted in companies listed in the Jakarta Islamic Index from 2014 to 2018. Purposive sampling was used to obtain samples from 12 companies. Analysis was done by multiple linear regression with the help of the IBM SPSS 23 statistical program for windows with a quantitative descriptive approach. The results show that the cost leadership strategy influences company’s performance compared to differentiation strategy. The implementation of a low-cost strategy is significantly relevant to the condition of people who are sensitive to price and are not much aware about brand products in decision making. The design of a unique item model does not determine success in marketing a product, the relative price offered is quite high and only in certain market segments the product is of public interest. Product quality is defeated by the quantity of goods, people prefer how much goods are obtained than the durability of the products consumed.
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spelling doaj.art-ee231d2d427748c0a8abefca3ca465522022-12-21T22:40:17ZengBina Nusantara UniversityJournal the Winners1412-12122541-23882020-03-01211354110.21512/tw.v21i1.59635159Comparing Cost Leadership Strategy with Differentiation Strategy towards Firm Performance on Jakarta Islamic IndexSurono surono0Tulus Suryanto1Erike Anggraini2University of AirlanggaIslamic State University of Raden Intan LampungIslamic State University of Raden Intan LampungThe research aimed to examine the effect of cost leadership strategy and differentiation strategy on company’s performance. It was conducted in companies listed in the Jakarta Islamic Index from 2014 to 2018. Purposive sampling was used to obtain samples from 12 companies. Analysis was done by multiple linear regression with the help of the IBM SPSS 23 statistical program for windows with a quantitative descriptive approach. The results show that the cost leadership strategy influences company’s performance compared to differentiation strategy. The implementation of a low-cost strategy is significantly relevant to the condition of people who are sensitive to price and are not much aware about brand products in decision making. The design of a unique item model does not determine success in marketing a product, the relative price offered is quite high and only in certain market segments the product is of public interest. Product quality is defeated by the quantity of goods, people prefer how much goods are obtained than the durability of the products consumed.https://journal.binus.ac.id/index.php/winners/article/view/5963cost leadership strategydifferentiation strategyfirm performance
spellingShingle Surono surono
Tulus Suryanto
Erike Anggraini
Comparing Cost Leadership Strategy with Differentiation Strategy towards Firm Performance on Jakarta Islamic Index
Journal the Winners
cost leadership strategy
differentiation strategy
firm performance
title Comparing Cost Leadership Strategy with Differentiation Strategy towards Firm Performance on Jakarta Islamic Index
title_full Comparing Cost Leadership Strategy with Differentiation Strategy towards Firm Performance on Jakarta Islamic Index
title_fullStr Comparing Cost Leadership Strategy with Differentiation Strategy towards Firm Performance on Jakarta Islamic Index
title_full_unstemmed Comparing Cost Leadership Strategy with Differentiation Strategy towards Firm Performance on Jakarta Islamic Index
title_short Comparing Cost Leadership Strategy with Differentiation Strategy towards Firm Performance on Jakarta Islamic Index
title_sort comparing cost leadership strategy with differentiation strategy towards firm performance on jakarta islamic index
topic cost leadership strategy
differentiation strategy
firm performance
url https://journal.binus.ac.id/index.php/winners/article/view/5963
work_keys_str_mv AT suronosurono comparingcostleadershipstrategywithdifferentiationstrategytowardsfirmperformanceonjakartaislamicindex
AT tulussuryanto comparingcostleadershipstrategywithdifferentiationstrategytowardsfirmperformanceonjakartaislamicindex
AT erikeanggraini comparingcostleadershipstrategywithdifferentiationstrategytowardsfirmperformanceonjakartaislamicindex