*Corresponding Author

P-ISSN: 1412-1212
E-ISSN: 2541-2388

35

The Winners, 21(1), March 2020, 35-41
DOI: 10.21512/tw.v21i1.5963

Comparing Cost Leadership Strategy with Differentiation 
Strategy towards Firm Performance

on Jakarta Islamic Index
Surono1*; Tulus Suryanto2; Erike Anggraini3

1 Faculty of Economics, University of Airlangga
Jl. Airlangga No. 4 - 6, Surabaya, Jawa Timur 60115, Indonesia

2,3 Faculty of Islamic Economics and Business, Islamic State University of Raden Intan Lampung
Jl. Endro Suratmin, Sukarame, Lampung 35131, Indonesia

1surono-2018@pasca.unair.ac.id; 2tulussuryanto@radenintan.ac.id; 3erikeanggraini@radenintan.ac.id

Received: 04th September 2019/ Revised: 16th September 2019/ Accepted: 19th September 2019

How to Cite: Surono., Suryanto, T., & Anggraini, E. (2020). Comparing cost leadership strategy with differentiation 
strategy towards firm performance on Jakarta Islamic Index. The Winners, 21(1), 35-41.

https://doi.org/10.21512/tw.v21i1.5963

Abstract - 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.

Keywords: cost leadership strategy, differentiation 
strategy, firm performance

I. INTRODUCTION

The company’s goal in general is to maximize 
profits as theory of the firm states that an organization 
combines and manages its resources with the aim 
of producing goods or services for trading (Setiono, 
2015). The achievement of the company’s sales will 
determine the value of a company, this reflects the trust 
and loyalty of the people to the company. As the value 

of a company, investors prosperity will also increase. 
The welfare of shareholders and the company are 
represented by stock price on the market exchange. 
The higher value of a company leads to the increasing 
share prices. The company is trying to increase the 
prosperity of investors to attract other investors to 
invest their finals in the company’s shares. One way is 
by listing the company into the Jakarta Islamic Index 
indexation. Being listed in the Jakarta Islamic Index 
(JII) is important because the majority of Indonesia’s 
population are Muslims who would prefer sharia 
stock investments. Based on the publication of the 
Kustodian Sentral Efek Indonesia (KSEI), the growth 
in the number of share investors in Indonesia in 
2018 has increased by 44% compared to 2017. Many 
companies competing to be listed in JII so that each 
company has a competitive strategy to be listed in JII 
(Niode, 2012). On the other hand, companies that have 
been listed in JII will try to maintain their position by 
implementing several corporate strategies. 

 Decisions in business is determining the 
sustainability of a company. The theory of the company 
states that the decision made in order to maximize 
profit is intended to maintain the existence of the 
company (Setiono, 2015), so every company needs to 
thrive and survive. Maintaining a company in a highly 
competitive market industry requires strategies to bring 
the company forward and win the market segment 
than any other competitor. Several potential strategies 
are Porter strategic theory, the cost leadership strategy, 
differentiation strategy and the strategy of focus. The 
cost leadership strategy and differentiation strategy 
are often applied by companies in winning the market. 
The benchmark in this research is the measurement 
of success of the strategy applied by the company 



36 The Winners, Vol. 21 No. 1 March 2020, 35-41

resulting in the company’s performance (Maharani & 
Budiasih, 2018).

A firm’s performance is a summary of the 
purpose which is the standard to be used as an appraiser 
of business success by economic entities in production 
activities (Setiawan, 2016). The need for information 
about the company’s performance as a measure of 
decision-making in the future by stakeholders and 
investors, for the measurement of performance needs 
to be done. The company’s performance has not had a 
basic standard, there are two approaches but financial 
and nonfinancial that can be used to describe and 
analyze the performance of the company. The financial 
approach uses the growth and profitability of the 
company, while the non-financial approach is based on 
the opinion (subject) or perceptions of the respondents 
who are considered more informative (Omsa, Ridwan 
& Jayadi, 2018). Performance measurement is also 
a process to measure the company’s efficiency and 
effectiveness measures (Rokhyadi, 2014). Optimal 
company’s performance is obtained through a series of 
strategies chosen and applied appropriately, especially 
with a business situation filled with an atmosphere 
of uncertainty that is faced with increasingly fierce 
levels of competition, so the right strategy is required 
since the strategic variables are believed to improve 
company’s performance. The strategy is perceived 
as a means of creating competitive advantage by the 
company, and is related to the strategies offered by 
Porter known as Strategic Positioning consisting of 
differentiation strategies and cost leadership strategies 
(Setiawan, 2016).

There have been numbers of researcher related to 
company’s performance influenced by Cost Leadership 
Strategy and differentiation strategies. Rustamblin, 
Thoyib, and Zain (2013) conclude that differentiation 
strategies are more effective and have an influence on 
the company’s performance on other generic Porter 
strategies. Furthermore, Setiawan (2016) finds that 
companies that choose cost leadership strategies are not 
better off giving company’s performance results than 
using differentiation strategies. Wibowo, Handayani, 
and Lestari (2017) point out that differentiation 
strategies using the size of Selling General and 
Administrative Expense (SG&A) or sales have an 
influence on company’s performance. It is assumed 
that companies implementing differentiation strategies 
have added input costs in producing unique goods 
compared to their competitors with the aim that the 
products are more attractive to consumers to increase 
the number of sales of the company with maximum 
profit. Purwantoro, Daryanto, and Djohar (2018) 
support the influence of differentiation strategies 
on company’s performance by pointing out that the 
company’s performance becomes more optimal when 
implementing a differentiation strategy.

On the other hand, Josiah and Nyagara (2015) 
has found influence between cost leadership strategies 
on company’s performance, while D. Banker, 
Mashruwala, and Tripathy (2014), Omsa et al. (2018) 
and Rokhyadi (2014) have stated that cost leadership 

strategies and differentiation strategies have influence 
on company’s performance. This research adopted the 
research of  Chang, Fernando and Tripathy (2015). 
There are several differences with previous studies, 
namely by using a sample of data not only in the 
manufacturing sector but in other sectors in the index 
of the Jakarta Islamic index in 2014-2018, based on 
suggestions put forward by Wibowo et al. (2017). In 
addition, the research compares strategies for generic 
positions on company’s performance. Therefore, this 
research tries to explore the effect simultaneously 
between Cost Leadership Strategy and differentiation 
strategies on company’s performance. Whether by 
testing and different analytical techniques will give 
different results or remain the same, so it can contribute 
to the research literature and can be used as input for 
interested parties in making an economic decision.

Cost leadership strategy is a strategy to produce 
products with per-unit costs that are produced 
significantly low-priced compared with goods offered 
in the market (Amalia, 2015). This strategy emphasizes 
efforts to produce standard products with a noticably 
affordable unit cost is a low cost strategy undertaken 
by companies to gain competitive advantage. Besides, 
the advantages of a company can be reflected when 
it is able to offer more economical prices compared 
to its competitors. Various combinations of level of 
differentiation and level of costs will give different 
results of strategic positions. The most successful 
companies having a level on the cost structure can 
benefit a high level of differentiation (Nainggolan, 
2018). Hence with this series of strategies, it is 
expected that the company increases sales of products 
in the market compared to its competitors.

The differentiation strategy is a strategy 
that seeks to create unique products that can be 
distinguished from the ones produced by competitors 
or marketed goods. This strategy places more 
emphasis on product excellence, innovation and the 
creation of new products offered in the market with 
the aim of getting product uniqueness compared to 
its competitors. In addition, the achievement of this 
strategy is through product uniqueness and additional 
features, comfort, and product grade up, so that it will 
be difficult for competitors to imitate the marketed 
products (Wibowo et al., 2017). The purpose of the 
product differentiation strategy is to maintain the 
unique characteristics of the product, so it remains 
to be the consumers’ most choice, which ultimately 
increases the level of sales of the company.

The company’s performance is measured 
using the Net Profit Margin, which is one part of the 
profitability ratio. Net Profit Margin shows whether 
the relationship is proportional to the profit. For 
instance, when the Net Profit Margin value increases, 
the company’s performance will be more productive 
resulting in profit increase. On the other hand, this 
serves to create effective and efficient conditions 
by controlling company costs, thus the waste from 
production operational activities can be minimized 
while the expected level of profit is getting bigger 



37Comparing Cost Leadership Strategy..... (Surono, et al.)

(Wibowo et al., 2017).
The hypotheses on cost leadership strategy will 

also be developed. Similar products offered at a more 
significantly affordable per-unit-costs from market 
prices is one characteristic of low cost strategies. 
This strategy is intended for consumers who tend to 
be easily affected by price changes and purchasing 
decisions based on the price of goods. This is suitable 
for buyers who are not too concerned about the brand, 
and when there is a high intensity of product bargaining 
in the market. When the company implements a low-
cost strategy and enters the market, the success of 
this strategy will be easily achieved, which is directly 
related to the success of the company’s performance 
as indicated by increased sales and high profit. Josiah 
and Nyagara (2015) and Rokhyadi (2014) show the 
influence of cost leadership strategies on company’s 
performance. Meanwhile in Differentiation Strategy, 
innovation is a concept that underlies product 
differentiation strategies. Product offerings follow the 
preferences of the people who continue to experience 
growth. Hence it requires innovation and upgrade 
to produce new variations of the products offered. 
Changes in terms of product shape and quality are 
carried out by the company to provide added value and 
function to influence consumers. The differentiation 
strategy measured using the SG&A/sales ratio shows 
that when the allocation value of SG&A is greater, 
profits will easily be achieved. Rustamblin et al. 
(2013), D. Banker et al. (2014), Chang et al. (2015), 
Setiawan (2016), Wibowo et al. (2017) and Omsa et al. 
(2018) have similar views that product differentiation 
strategies have a greater influence on company’s 
performance compared to other generic strategies.

Based on the presentation and results of the 
previous research, the research hypothesis is proposed, 
namely:
H1: Cost Leadership Strategy influences firm 
performance.
H2: Differentiation Strategy influences firm 
performance.

II. METHODS

The population are all companies listed in the 
Jakarta Islamic Index (JII) from 2014 to 2018. The 
data source is secondary data by using data from 
the annual financial report results in companies 
indexed by JII. The sample selection is based on the 
purposive sampling method, which is determined by 
special characteristics by researchers aiming to get an 
accurate sample with predetermined criteria, so it can 
be representative. The sample criteria in this research 
are: (1) Companies listed in the Jakarta Islamic Index 
from 2014 to 2018; (2) Listed consecutively at the 
Jakarta Islamic Index indexation from 2014 to 2018;                                                                                                             
(3) Issuing financial statements from 2014 to 2018; 
(4) The financial statements are presented in rupiah 
currency; (5) Companies that do not report losses 
in 2014-2018 annual financial statements; (6) The 

company’s annual report has the data needed in 
relation to the independent and research dependent 
variables. The classic assumption test and multiple 
linear regression test are performed on the sample 
obtained.

Company’s performance is measured using the 
Net Profit Margin (NPM) variable. This ratio shows 
that when the value of NPM is higher, it will be 
equivalent to better earnings since this ratio illustrates 
how the technique of a company in controlling and 
managing sales in achieving profits is more efficient 
(Tandelilim, 2010). Calculation of Net Profit Margin 
follows a study conducted by Agustina & Sumartio 
(2014), which is:

NPM = Net Income / Sales           (1)

Balsam, Fernando and Tripathy (2011) and 
Chang et al. (2015) in their watchfulness have pointed 
out how to measure the cost leadership strategy using 
the ratio of net sales to capital spent. The ratio measures 
a company’s ability to obtain long-term assets using 
sales revenue. The ratio of sales to capital expenditures 
will often fluctuate when the business goes through a 
large cycle and small capital expenditures (Birjandi et 
al., 2014). Mathematically the measurement of cost 
leadership strategy is:

CLS = Sales / Capital Expenditure      (2)

Measurement of differentiation strategies 
follows the calculation of the independent variables 
that have been carried out by Balsam et al. (2011) and 
Chang et al. (2015)

DS = SG&A / Sales          (3)

Where DS = Differentiation Strategy; S = 
cost of sales; G = general costs; A = administrative 
costs; and Sales = sales. This ratio is a means of 
corporate investment to differentiate products against 
competitors. The application of this strategy to 
companies will require more costs compared to the 
cost leadership strategy to create unique products to 
increase company sales.

The relationship between the dependent and 
independent variable data can be identified through 
the use of classic assumption tests. This is essential to 
do before continuing to test the regression analysis of 
the research variables.

Normality test aims to determine whether the 
proposed regression modeling, or residual confounding 
variable has a normal distribution (Ghozali, 2016). The 
interrupting variable of a regression requires that it is 
spread normally. This is to meet the original zero mean 
if the variable and is normally distributed. If so, then 
the variables used in the research on the Y variable 
will also be normally distributed. Testing normality is 
implemented by looking at the value of the probability 
of normality test results using the Kolmogorov-
Smirnov test to determine whether the distribution 



38 The Winners, Vol. 21 No. 1 March 2020, 35-41

of variable data is normal or abnormal. The rules for 
regression modeling are normally distributed if the 
probability of Kolmogorov-Smirnov is greater than 
5% (p >0,05).

Multicollinearity test functions to test 
whether the regression models indicate resources to 
a correlation between independent or independent 
variables. The prerequisite that must be fulfilled in the 
regression model is the absence of multicollinearity 
(Ghozali, 2016). The way to detect the findings of 
multicollinearity is to use a method that is regressing 
the analysis model and conducting a correlation test 
between independent variables using values from the 
variance inflation factor (VIF) and tolerance value. 
If the tolerance value is greater than 0,1 and VIF is 
less than 10, it means there is no multicollinearity. 
However, if the tolerance value is <0,1 and VIF> 10, 
there is multicollinearity in this research.

Heteroscedasticity test has the purpose to find 
out whether regression modeling has a difference 
in the value of variance from the residual number 
one observation to the next observation. When 
the residual variance value from one observation 
to another observation is constant, it can be said 
as homoscedasticity. In contrast, when the results 
are different it is called heteroscedasticity. A good 
regression model that has a variance value tends 
to be fixed or homoscedasticity (Ghozali, 2016). 
Heteroscedasticity can be known through a test by 
using the Glejser test method, which is by compiling 
a regression between the residual absolute value and 
the independent variable. If each independent variable 
does not significantly influence residual absolute (α = 
5%) then the regression model in the research does not 
occur with symptoms of heteroscedasticity.

The autocorrelation test aims to test whether 
in the linear regression model there is a correlation 
between confounding errors in the t period and 
errors in the t-1 period (previous) (Ghozali, 2016). 
When there is a correlation, there is a problem with 
autocorrelation. This arises because of a series of 
sequential observations over time that are related to 
one another. A good regression model is free from 
autocorrelation. In the research, autocorrelation is 
tested by Durbin Watson Test. Determination of the 
existence of autocorrelation can be determined through 
the Durbin Watson Test value, that is, when the value 
d <dL or d> 4-dL, the data is autocorrelated. Whereas 
for data with no autocorrelation, dU <d <4-dU. With 
a value of α = 0,05, where d = Durbin Watson and dL, 
dU is a number from the Durbin Watson table.

Multiple linear regression functions to review 
the effect of independent variables on dependent 
variables with the following formulations:

KP (NPM) = α + β1 CLS + β2 DS + e       (4)

Where KP = Company Performance is measured 
using Net Profit Margin; α = constants; β = regression 
coefficient; CLS = Cost of Leadership Strategy; DS = 
Differentiation Strategy; e = error standard.

Test F basically indicates whether all the 
independent variables included in the model has a 
collective effect on the dependent variable (Ghozali, 
2016). The test in the research uses a significant level 
of 0,05 (α = 5%). When significant or probability 
values are less than 5% (p <0,05) and F statistic > F 
table, it can be said that there is a joint effect between 
the independent variables on the dependent variable (F 
statistic = F (k; n-k).

T test aims to illustrate the influence of the 
independent variables individually in explaining the 
variation of the dependent variable (Ghozali, 2016). 
Test statistic t is used to test the significance of the 
effect of each independent variable on the dependent 
variable. The test uses a significant level of 0,05 (α = 
5%). This shows that the free variable will get the t 
value located in the critical area (reject area) if the true 
hypothesis is actually 0,05 if t count is greater than t 
table then H0 is rejected, meaning there is an influence 
between the independent variable on the dependent 
variable, and vice versa.

III. RESULTS AND DISCUSSIONS

The sample of the research is presented in              
Table 1.    

Table 1 The Samples in the Research

Sample selection Amount 
The company listed at JII from 2014 to 
2018

47

Companies that are not listed in 
succession during the period

32

Companies that issue financial 
statements not in rupiah during the 
period

2

Companies that report losses during 
2014-2018

1

Number of sample companies 12
The number of samples during the 
research period x

60

Based on the results of data analysis using 
the help of SPSS 23. It is declared that variables are 
normally distributed if the results of the Kolmogorov-
Smirnov test show an asymp value. sig. > alpha (0,05). 
It can be seen in the Table 2 that the Kolmogorov-
Smirnov test value is 0,187, while the asymp value is 
Sig. (2-tailed) for an unstandardized variable of 0,000 
less than an α value of 0,05. Hence it can be concluded 
that the data used is not normally distributed. Data is 
stated not to experience a normal spread because based 
on the results of the company’s annual financial report 
in the research sample shows that there are significant 
fluctuations in the number of financial results used in 
the research.



39Comparing Cost Leadership Strategy..... (Surono, et al.)

Table 2 One-Sample Kolmogorov-Smirnov Test

One-Sample Kolmogorov-Smirnov Test
Unstandardized Residual

N 60
Normal Parametersa,b Mean 0,0000000

Std. 
Deviation

0,10793834

Most Extreme 
Differences

Absolute 0,187

Positive 0,187
Negative -0,142

Test Statistic 0,187
Asymp. Sig. (2-tailed) 0,000c

a. Test distribution is Normal

The results of multicollinearity tests                         
(Table 2) indicate that the cost leadership strategy and 
differentiation strategy variables have values greater 
than tolerance of 0,1 and VIF values are below 10, 
which means that the variables do not occur to be 
multicollinearity.

Table 3 Multicollinearity Test Results

Independent  Collinearity Statistics Conclusion 
Model Sum of 

Squares
df Mean 

Square
F Sig.

1 Regres-
sion

0,086 2 0,043 3,560 0,035 b

Residual 0,687 57 0,012
Total 0,773 59
Variable Toler-

ance 
VIF 

constant
CLS 0,905 1,105 There is no 

multicollinearity
DS 0,905 1,105 There is no 

multicollinearity

The probability of the cost leadership strategy 
variable and differentiation strategy is statistically 
significant above 0,05. It can be concluded that the 
regression model does not have heteroscedasticity, as 
seen Table 4.

Based on the results of the Durbin-Watson test 
with the help of the SPSS 23 application, the Durbin-
Watson value is 0,99. This value is compared with the 
Durbin Watson value table for n = 60 and k = 3 with 
(α) 0,05 or 5%, then the value of dL = 1,48 and dU = 
1,69. As a result, the Durbin Watson test value is at (4 
- DW)> dU. This becomes the evidence of the absence 
of negative autocorrelation.

Based on the results of the data obtained, the 

results of multiple linear regression tests can be seen 
in Table 5.

Table 4 Heteroscedasticity Test Results

Dependent 
Variable

Independent 
Variable

Sig. t Conclusion

FP CLS 1,000 There is no 
Heteroscedas-
ticity

DS 1,000 There is no 
Heteroscedas-
ticity     

Table 5 Result of Multiple Linear Regression Tests

Model Unstandard-
ized

Coefficients

Standardized
Coefficients

B Std. 
Error

Beta T Sig

1 (Constant) 0,082 0,028 2,932 0,005
CLS 0,009 0,004 0,263 2,007 0,050
DS 0,131 0,124 0,139 1,055 0,296

Thus obtained the regression equation as follows:

FP (NPF) = 0,082 + 0,009CLS + 0,131DS + e

Based on the results of the SPSS output, the 
conclusions taken from the F test are provided in   
Table 6.

Table 6 Result F test

Model Sum of 
Squares 

df Mean 
Square 

F Sig. 

1 Regres-
sion 

0,086  2  0,043 3,560 0,035 b

Residual 0,687 57  0,012   
Total 0,773 59     

Based on the results of the f test, the probability 
value is 3,560 with a significance of 0,035. The results 
of df also show values of 57 and 59. The calculated f 
value is greater than f table which is 0,035 < 3,160. 
Thus, it can be concluded that simultaneously the 
cost leadership strategy variable and differentiation 
strategy do not affect the company’s performance.

The t test is used to test partially, the statistical 
significance of the variable cost leadership strategy, 
differentiation strategy and company’s performance. 
Table 7 provides the results of the t test.



40 The Winners, Vol. 21 No. 1 March 2020, 35-41

Based on the results of the t test, it is found 
that the cost leadership strategy variable has t count 
2,007 > t table 2,002, with a significance value of 0,05, 
probability below alpha. It can be concluded that there 
is an influence between the cost leadership strategy 
on company’s performance. The results indicate that 
implementing cost leadership strategies namely low 
cost, has an influence on company’s performance. 
The research result support the research conducted 
by Josiah & Nyagara (2015). Cost leadership strategy 
is the way a company attracts customers by offering 
per unit product prices below the competitor’s offer. 
This strategy is a business tactic that is by utilizing 
consumers who determine purchasing decisions 
based on product price offers from the company. This 
phenomenon is particularly suitable with the conditions 
in Indonesia, where buyers have low awareness about 
the brand and the intensity of product bargaining is 
high as well as easily affected by more relatively 
affordable goods. When companies implement cost 
leadership strategies, the success of this strategy will 
be easily achieved. Therefore, the implementation 
of cost leadership strategy influences the company’s 
performance as indicated by the intensity of company 
sales increasing and high profit.

Table 7 T Test Results

Model Unstandard-
ized

Coefficients

Standardized
Coefficients

B Std. 
Error

Beta T Sig

1 (Constant) 0,082 0,028 2,932 0,005
CLS 0,009 0,004 0,263 2,007 0,049
DS 0,131 0,124 0,139 1,055 0,296

Based on the results of the calculation seen 
in Table 7, the differentiation strategy variable has 
a value of 1,055 <t table 2,002 with a significance 
number of 0,296 probability above 0,05, so it can be 
concluded that differentiation strategy does not affect 
the performance of the company. The results of this 
indicate that by presenting unique products offered 
in the market, it has no influence on company’s 
performance. The results of the research do not 
support the research by Purwantoro et al. (2018). The 
differentiation strategy is a strategy that seeks to create 
unique products can be significantly distinguished 
from products by competitors or marketed goods. This 
strategy places more emphasis on product excellence, 
innovation and the creation of new products offered in 
the market with the aim of getting product uniqueness 
compared to the competitors. Conditions in Indonesia 
show that many imitation products are scattered in 

almost all places. Besides many sellers offer quality 
products that are not suitable for consumption in the 
market with a derivative level of super copy under 
imitation. This phenomenon is actually sad because 
many goods in the market are not in accordance with 
Indonesian national standards. Smart consumers will 
certainly consider purchasing decisions on product 
quality and product safety. If many customers have 
long-term thinking about consuming products, this 
strategy will succeed. However, the results of this study 
indicate that, currently, the product differentiation 
strategy has no influence on company’s performance.

IV. CONCLUSIONS

First, the research concludes that there is an 
influence between the cost leadership strategy on 12 
companies’ performance listed on Jakarta Islamic 
Index (JII) indexation from 2014 to 2018. The 
results of support the research conducted by Josiah 
and Nyagara (2015). This phenomenon is suitable 
with the conditions in Indonesia, where buyers have 
low awareness about the brand and the intensity of 
product bargaining is high as well as easily affected 
by more relatively affordable goods. When companies 
implement cost leadership strategies, the success 
of this strategy will be easily achieved. Therefore 
the application of cost leadership strategy affects 
company’s performance.  

Second. differentiation strategy does not affect 
12 companies’ performance listed on JII. The results 
of the research do not align with the research by 
Purwantoro et al. (2018). Conditions in Indonesia 
show that many replicas of the products are distributed 
in many places. If many customers have long-term 
thinking about consuming products, this strategy will 
be successful. Nevertheless, the results indicate that, 
currently, the product differentiation strategy does not 
significantly influence the company’s performance.

There are several suggestions for further 
research that can be considered: 1) It is better to 
increase the number of samples not only in the 
Jakarta Islamic index, but more broadly to obtain 
complete research data; 2) Further research can add 
to the number of variables that have influences on 
company’s performance; 3) The next research should 
be able to add years of research to obtain the validity 
of the research results.

ACKNOWLEDGMENTS

The research is conducted using the researchers’ 
private funds and is not supported by external funding 
from related institutions or companies. The research is 
used for the needs of researchers. The researchers thank 
Professor Tulus Suryanto and Dr. Erike Anggraini for 
having contributed to this research.



41Comparing Cost Leadership Strategy..... (Surono, et al.)

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