5th European International Conference on Industrial Engineering and Operations Management

Implementation of Cost Leadership Strategy in Indonesian Fertilizer Company

Arief Nurdini, Elsa Wahyu Harliana & Lathifah Karina Putri
Publisher: IEOM Society International
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Track: Business Management
Abstract

The increasing global population drives up food demand which means crop production needs to increase. To achieve that, fertilizer is used. Many industries, including the fertilizer industry, are feeling the impact of COVID 19. This paper presents the implementation of cost leadership strategy in Indonesia fertilizer company, the effect of COVID 19 on the fertilizer industry, and how the strategy is used to achieve competitiveness. This paper also discusses the impact of the implementation of cost leadership strategy to the company's financial performance. Based on the result, the five components of the cost leadership strategy can be fulfilled by the company. However, for the component that consumers have the power to bargain the price is not in accordance with the fertilizer industry. This is generally due to the fact that fertilizer prices in Indonesia depend on and affect world fertilizer prices. The impact of the implementation of the cost leadership strategy is carrying out effectiveness such as operational costs, managing inventory, and the use of raw materials.

Keywords
Competitiveness, Cost Leadership, COVID 19, Fertilizer, Strategy.

Published in: 5th European International Conference on Industrial Engineering and Operations Management, Rome, Italy

Publisher: IEOM Society International
Date of Conference: July 26-28, 2022

ISBN: 978-1-7923-9161-3
ISSN/E-ISSN: 2169-8767