Sources of cost and differentiation drivers of filstar Distributor Corporation and Fiesta Greetings Incorporated

• Main Authors: Capule, Jenelyn C., Tan, Melody T., Tanquintic, Paul Anthony R.
• Format: text
• Language: English
• Published: Animo Repository 2009
• Subjects: Industrial management; Business planning; Strategic planning; Cost accounting; Managerial accounting; Competition
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17490
• Institution: De La Salle University

The researchers employed a comparative case study to determine if there are significant differences in cost and differentiation drivers used for two firms. Exploratory research was used to find out the firms' financial information and its value chain activities. In-depth interviews were conducted with key personnel of both firms to determine the firms' perceived sources of cost advantage and focus group discussions were held with the products' target market to determine the sources of differentiation advantage on the firm perceived by the consumer. Based from the in-depth interviews and focus group discussions, the researchers found that there are significant differences in the perceived sources of cost and differentiation advantage. It was found in the study that savings in costs may not automatically result to higher profit. The study stresses the importance of balancing a firm's cost and differentiation advantages to maximize firm performance.