• Journal of Information Technology Applications and Management
• /
• v.15 no.1
• /
• pp.43-65
• /
• 2008

This study investigates the effects of business environment on the e-business strategy and performance of venture firms. The development of the research model is based on the empirical studies on the strategy literature. The data from the survey was analyzed using Partial Least Squares(PLS). For Daedeok Valley Venture Firms, product innovation differentiation strategy is affected by environmental uncertainty. And, cost leadership strategy tend to be influence by environmental uncertainty. Finally, venture firm's performance is effected by cost leadership strategy and marketing differentiation strategy. However, for in Hsinchu Science Park Venture Firms, product innovation differentiation strategy is affected by environmental uncertainty and heterogeneity. And, marketing differentiation strategy is enhanced by environment uncertainty and industry growth. In addition, cost leadership strategy tend to be influence by environmental uncertainty and heterogeneity. Finally, venture firm's performance is effected by cost leadership strategy and product innovation differentiation strategy.

• The Transactions of the Korean Institute of Electrical Engineers A
• /
• v.52 no.8
• /
• pp.457-462
• /
• 2003

This paper presents an optimal operating strategy of distributed generation (DG) with reliability worth evaluation of distribution systems. Using DG for peak-shaving unit could reduce the overall system operating cost, and using DG for standby power unit could reduce the customer interruption cost. If DG operating cost is less than utility power cost in peak time, DG should be running to reduce the overall system operating cost. When customer interruption cost enlarges, however, standby power strategy may be the better operating strategy than peak-shaving strategy. Selection of whether DG should be operated for peak-shaving or for standby power, needs the accurate reliability worth evaluation and the accurate power cost evaluation. Instead of using annual average reliability worth, the concept of hourly reliability worth is introduced in this paper to determine the optimal operating decision of DG. Applying suggested hourly reliability worth, the distribution companies that possess DG could set up the optimal operating strategy of DG.

• The Journal of Industrial Distribution & Business
• /
• v.13 no.12
• /
• pp.9-22
• /
• 2022

Purpose: Establishing a competitive advantage in the aviation market is essential as the competition among domestic airlines intensifies. Therefore, this study examined the management strategies of both large domestic airlines and low-cost airlines. Research design, data, and methodology: This study classified domestic airlines into Full Service Airlines (FSA) and Low Cost Carriers (LCC), examined each airline's current status and characteristics, and conducted case analyses of FSA and LCC based on Porter's generic competitive strategy. Results: The analyses determined that LCC primarily implemented a cost-advantage strategy, and FSA implemented a differentiation strategy. However, as competition intensified, FSA pursued cost-advantage strategies while establishing LCC through subsidiaries. There are various specific cost reduction methods, including service simplicity, scalability, high utilization, low landing fees, low-cost unit, and point-to-point flight strategies. Conclusions: LCCs are focusing on cost advantage strategies that reduce costs; however, the FSA also runs special price events that are as good as LCCs and are comparable to LCCs on some routes. Furthermore, LCC has recently expanded its mid- and long-distance routes, making competition for long-distance routes with major airlines unavoidable.

• Journal of East Asia Management
• /
• v.4 no.1
• /
• pp.79-98
• /
• 2023

This study investigates the relationship between firm's cost behavior and the managerial strategic deviation. Firms which intend to reduce uncertainty and improve viability for future performance tend to implement managerial strategies similar to peer firms in the same industry. Since the managerial decisions affect firm's cost behavior, the strategic deviation including operations different from others would be associated with cost behavior distinct from peer firms. On firms listed on Korean Security Exchange and KOSDAQ markets from 2002 to 2017, the analysis show the results that the firm's strategic deviation is positively associated with cost-downward rigidity, indicating that the management strategy affects the cost behavior. Also, it means that corporate managers who choose a strategy that deviates from peer firms are less likely to adjust their resource even when sales decrease. This study is meaningful in expanding the literature on the determinants of cost behavior by analyzing the effect of the management strategy's characteristics of strategic deviation on cost behavior.

• Journal of Distribution Science
• /
• v.11 no.4
• /
• pp.61-72
• /
• 2013

Purpose - It is widely accepted that the process of developing marketing strategy is composed of three steps: market segmentation, target market selection and positioning. However, mass marketing strategy based on cost reduction through economies of scale and standardized products, can be also an effective strategic option. Many marketing scholars including Theodore Levitt emphasize the importance of applying the mass production concept to various industries including service industries. Especially, in times of economic downturn, the capability of providing consumers with low-priced, value products can be an important source of competitive advantage, as well as the ability of providing high-priced premium products. Marketers should decide whether they will implement mass marketing strategy or target marketing strategy. The present study theoretically shows that firms should understand the target customers' price elasticity as well as the firm's cost structure in order to make such a strategic decision. Research design, data, and methodology - Instead of implementing an empirical study, this study provides a theoretical(mathematical) investigation on the effect of consumers' price elasticity on a firm's optimal price level, profit, sales volume, revenue, and cost. The results are mostly deduced from derivative calculations and several graphs are utilized to represent the results on the relationships between the variables under study. Results - The analytical results suggest that it is more profitable for a firm to adopt the segment/target marketing strategy (more specifically the differentiation strategy) when the degree of consumers' heterogeneity is high and the proportion of the fixed cost in the total cost is low. On the other hand, if the degree of consumers' heterogeneity is low and the fixed cost is high, it is better to adopt the mass marketing strategy or the cost leadership strategy. The strategy of concentrating on a single target market will be effective when consumers' needs are highly heterogeneous but the fixed cost is high. Any of the three types of generic strategies proposed my Porter(1980, 1985) can be applied when both the consumers' heterogeneity and the fixed cost are low. This study also proposes the contribution-margin-based method for developing the optimal pricing strategy. Conclusions - One of the primary roles of marketers is to find a proper compromise between the two conflicting goals of maximizing customer satisfaction and minimizing cost. In order to do so, he or she should understand the characteristics of the target customers as well as the cost structure of the firm. In addition to the theoretical analyses, this study discusses several business cases and explains how superior companies find the optimal compromise position between these two goals and dominate the market. One of the radical changes recently taking place in business arena is the reduction of production and distribution costs of both physical goods and information due to the advancement and the wide diffusion of information technology. The cost reduction combined with lowered priced elasticity incurred by customized products and services, will enable many firms to adopt the mass customization strategy.

• Journal of Digital Convergence
• /
• v.18 no.5
• /
• pp.145-155
• /
• 2020

The purpose of this study investigates the relationship between business strategy and cost behavior according to the corporate life cycle. To do so, I first examine the relationship between cost behavior and business strategy. And then, I analyze the effect of the business strategy on cost behavior conditional upon corporate life cycle based on listed Korean firms from 2000 to 2019. Specifically, the business strategy index is calculated by using the six continuous financial factors and the Prospector and Defender was defined on the score. Also, the corporate life cycle is distinguished based on the cash flow pattern. I find the evidence that the Prospector firms are likely to strengthen the asymmetry of cost behavior (cost stickiness), and examined that such a relationship was most strongly represented in the Introduction. This study is meaningful in that this is a more comprehensive analysis by examining business strategy and cost strategy according to the corporate life cycle and expand the application of financial information by using financial indicators to distinguish business strategies.

• Journal of the Korean Society of Systems Engineering
• /
• v.2 no.1
• /
• pp.18-23
• /
• 2006

The purpose of this study and report is to provide, to the MND, an independent cost analysis of modernizing software of F-16 fighter fleets to support the use of several weapon system options, including JDAM, AIM-9X and HARM Targeting System etc. The study analyzed each options with software sizing, software cost, enabling hardware cost, flight test cost, system engineering cost, and 3 strategies. And the study proposed and analyzed some alternative strategies: strategy1 is to modernize software only within existing electronic processing capability; strategy2 is a full upgrade of weapons avionics with plug compatible electronics; strategy3 is an approach defined to mirror the USAF Common Configuration Implementation Approach (CCIP). The recommended alternative is strategy2.

• Health Policy and Management
• /
• v.29 no.3
• /
• pp.357-367
• /
• 2019

Background: This study evaluated the cost-effectiveness of 21 different national dyslipidemia screening strategies according to total cholesterol (TC) cutoff and screening interval among 40 years or more for the primary prevention of coronary heart disease over a lifetime in Korea, from a societal perspective. Methods: A decision tree was used to estimate disease detection with the 21 different screening strategies, while a Markov model was used to model disease progression until death, quality-adjusted life years (QALYs) and costs from a Korea societal perspective. Results: The results showed that the strategy with TC 200 mg/dL and 4-year interval cost \4,625,446 for 16.65105 QALYs per person and strategy with TC 200 mg/dL and 3-year interval cost \4,691,771 for 16.65164 QALYs compared with \3,061,371 for 16.59877 QALYs for strategy with no screening. The incremental cost-effectiveness ratio of strategy with TC 200 mg/dL and 4-year interval versus strategy with no screening was \29,916,271/QALY. At a Korea willingness-to-pay threshold of \30,500,000/QALY, strategy with TC 200 mg/dL and 4-year interval is cost-effective compared with strategy with no screening. Sensitivity analyses showed that results were robust to reasonable variations in model parameters. Conclusion: In this study, revised national dyslipidemia screening strategy with TC 200 mg/dL and 4-year interval could be a cost-effective option. A better understanding of the Korean dyslipidemia population may be necessary to aid in future efforts to improve dyslipidemia diagnosis and management.

• KSII Transactions on Internet and Information Systems (TIIS)
• /
• v.17 no.11
• /
• pp.3030-3049
• /
• 2023

With the development and wide application of hybrid network computing modes like cloud computing, edge computing and fog computing, the customer service requests and the collaborative optimization of various computing resources face huge challenges. Considering the characteristics of network environment resources, the optimized deployment of service resources is a feasible solution. So, in this paper, the optimal goals for deploying service resources are customer experience and service cost. The focus is on the system impact of deploying services on load, fault tolerance, service cost, and quality of service (QoS). Therefore, the alternate node filtering algorithm (ANF) and the adjustment factor of cost matrix are proposed in this paper to enhance the system service performance without changing the minimum total service cost, and corresponding theoretical proof has been provided. In addition, for improving the fault tolerance of system, the alternate node preference factor and algorithm (ANP) are presented, which can effectively reduce the probability of data copy loss, based on which an improved cost-efficient replica deployment strategy named ICERD is given. Finally, by simulating the random occurrence of cloud node failures in the experiments and comparing the ICERD strategy with representative strategies, it has been validated that the ICERD strategy proposed in this paper not only effectively reduces customer access latency, meets customers' QoS requests, and improves system service quality, but also maintains the load balancing of the entire system, reduces service cost, enhances system fault tolerance, which further confirm the effectiveness and reliability of the ICERD strategy.

• Korea Journal of Hospital Management
• /
• v.4 no.1
• /
• pp.129-146
• /
• 1999

The overall objective of this article is to identify the strategic type of Korean hospitals in terms of Porter's framework and to examine differences in performance of the hospitals across strategic types. A survey was conducted through structured questionnaire for 739 hospitals in Korea and the data from 120 hospitals were utilized in the final analysis. Study results indicate that the most frequently used strategy was 'stuck-in-the-middle strategy'(26.7%), followed by 'focused cost leadership strategy'(24.0%), 'focused differentiation strategy'(20.8%), 'cost leadership strategy'(15.8%), and 'differentiation strategy'(13.7%). Overall, 'focused differentiation strategy' showed superior performance in terms of profitability of services, ability to retain patients and growth in revenue, while 'differentiation strategy' produced relatively low performance in general. Implications of these findings are also discussed.