Cost Strategy versus Quality: a Brazilian Tannery Case
The leather industry, like many others, subsists under a complex trade-off between how to be profitable and how to assure efficiency and low costs. To attain such a condition, it becomes essential to establish and follow a definite strategy. Michael Porter has proposed the concept of generic strategies: cost minimization, product differentiation and market focusing. Based on Porters concept, this article reveals how one of the Brazilian largest exporters has found a way to reconcile stringent attention to costs with quality differentiation in their specific segment. The paper analyzes the last 3-year period during which the tannery had put forth a series of plans and actions: budget monitoring, intensive management of controls and processes, managerial engagement and strategic location near suppliers. It also kept the balance between the available resources (human, financial, raw materials) and the necessary skills to develop its product and to distinguish it from other competitors. This strategy was much influenced by the companys culture (cost centered) and, as the business expanded, the risk of losses also increased;fortunately the top executives had foreseen some of these problems and redirected the companys focus. This study displays what else should be considered to enhance the strategy and which aspects deserve improvement;for instance, higher investments in technology and automation, bigger allotments for research and development (nowadays assigned to a secondary role). It represents an interesting experience from a tannery that strives to survive and secure profits while immersed in a competitive world market.
strategy cost tannery industry
Costa, Luis
Rua Joao Gregorio Barbosa, 56/01-Pioneiro-Fazenda Rio Grande-Parana/Brazil
国际会议
北京
英文
201-208
2009-10-11（万方平台首次上网日期，不代表论文的发表时间）