Correlation between Differentiation Strategy and Cost Leadership of Private Energy Businesses in the Sulaymaniyah City of Kurdistan Iraq.

Arwand Hamadamin Ahmed

University of Raparin, Rania

DOI: http://doi.org/10.31918/twejer/2252.29

Download Full text

https://www.doi.org/10.31918/twejer. 2252.29

e-ISSN (2617-0752)      p-ISSN (2617-0744)






Correlation between Differentiation Strategy and Cost Leadership of Private Energy Businesses in the Sulaymaniyah City of Kurdistan Iraq.




Arwand Hamadamin Ahmed, Assistant Lecturer

University of Raparin, Rania

 [email protected]           




This study is concentrated on the correlation between two of porter’s general strategic strategies which are bringing leadership and isolation strategy and how it's related to the contending advantage in the private power businesses in the megacity of Sulaymaniyah in the Iraqi Kurdistan area. A quantitative system has been applied for analysis and an aggregate of 100 questionnaires was distributed among the directors of every order of all the private power businesses out of which 93 responded. The first part of the exploration is determining the positive relationship between the cost leadership and contending advantage, other part is concentrated on determining the possibility of a positive relation between isolation strategy and contending advantage. If we see the issues after the different analyses of the first hypothesis. The value of beta B is0.691 for cost leadership which means it's prognosticating the competitive advantage. Therefore, it supports our first thesis. After viewing the results of the analysis of the alternate hypothesis. The value of beta B is0.130 for the isolation strategy which means it's also Prognosticating the competitive advantage significantly


Keywords: Private Energy Businesses, Porter’s Generic Strategies, Competing Advantages.






هذه الدراسة تركز على العلاقة بين اثنتين من إستراتيجيات بورتر وهما إستراتيجية قيادة التكلفة وإستراتيجية  التمايز وكيفية ارتباطهما بالميزة التنافسية في أعمال الطاقة الخاصة في مدينة السليمانية في اقليم كردستان العراق.تم تطبيق الطريقة الكمية لتحليل 93 استبيان من اصل 100 تم توزيعه على مدراء كل فئة من فئات أعمال الطاقة الخاصة. الجزء الأول من البحث يحديد العلاقة الإيجابية بين قيادة التكلفة والميزة التنافسية ، بينما يركز الجزء الآخر على تحديد إمكانية العلاقة الإيجابية بين استراتيجية التمايز والميزة التنافسية. إذا نظرنا الى النتائج بعد التحليل المختلف للفرضية الأولى. فان قيمة بيتا لقيادة التكلفة  تبلغ 0.691, اي أنها قادرة على التنبأ بالميزة التنافسية. وعلية، فهي تدعم فرضيتنا الأولى. وبعد الاطلاع على نتائج تحليل الفرضية الثانية فان قيمة بيتا لإستراتيجية التمايز تبلغ 0.130، فهذا يعني أنها أيضًا تتنبأ بالميزة التنافسية بشكل مثير للاهتمام.

الكلمات المفتاحية: شركات الطاقة الخاصة، استراتيجيات بورتر العامة، المزايا المتنافسة.





9. References


-        ADINOLFI, F., and M. DEROSE. 2011. "Dedicated and generic marketing strategies; the disconnection between geographical indications and consumer behaviour in Italy." British Food Journal 419-435.

-        ALLEN, S.R., M.M. HELMS, H. JONES, B.M. TAKEDA, and S.C WHITE. 2007. "Porter’s business strategies in Japan." Business strategy series 1-9.

-        AMOAKO-GVAMPAH K., ACQUAAH, M. 2008. " Manufacturing strategy, competitive strategy and firm performance: An empirical study in a developing economy environment." International Journal of Production Economics 575-592.

-        AWADE, R.P. 2014. "Implementation of combination strategy based on porter's model: success built on the lost opportunity in industrial lubricants." Asian Journal of Management Research 699-710.

-        Bank, World. 2021. World Bank. November 01. Accessed January 27, 2022. https://www.worldbank.org/en/country/iraq/overview#1.

-        BORDEAN, N.O., I.A. BORZA, L.R. NISTOR, and S.C MITRA. 2010. "The Use of Michael Porter’s Generic Strategies in the Romanian Hotel Industry." International Journal of Trade, Economics and Finance 173-178.

-        CFI. n.d. Corporate Finance Institute. Accessed January 28, 2022. https://corporatefinanceinstitute.com/resources/knowledge/strategy/competitive-advantage/.

-        COYNE, K. P. 1986. "Sustainable Competitive Advantage: What It Is, What It Isn’t." Business Horizons 54-61.

-        Datta, Y. 2010. "A critique of Porter's cost leadership and differentiation strategies." Chinese Business Review 38-45.

-        Monsoon Kim, Dae-il Nam, J.L Stimpert. 2004. "The Applicability of Porter's Generic Strategies in the Digital Age: Assumptions, Conjectures and Suggestions." Journal of Management 571-572.

-        FURRER, O., D. SUDARSHAN, H. THOMAS, and T.M. ALEXANDRE. 2008. " Resource configurations, generic strategies, and firm performance exploring the parallels between resource-based and competitive strategy theories in a new industry." Journal of Strategy and Management 15-40.

-        Guide, Entertainment and Business. 2020. Kurdistan Region of Iraq. Business and Tour Guide, Montegraf S.L.

-        Hashem Valipour, Hamid Birjandi, Samira Honarbakhsh. 2012. "The Effects of Cost Leadership Strategy and Product Differentiation Strategy on the Performance of Firms." Journal of Asian Business Strategy 14-16.

-        HAWKINS, I.D., and L.D. MOTHERSBAUGH. 2010. Consumer Behaviour Building Marketing Strategy. Guide Manual, New York: McGraw-Hill/Irwin, a business unit of the McGraw-Hill Companies Inc.

-        HILL, C.W. 1988. "Differentiation versus low cost or differentiation and low cost- A contingency framework." The Academy of Management Review 401-412.

-        HOFFMAN, N.P. 2000. "An Examination of the "Sustainable Competitive Advantage Concept: Past, Present, and Future." Academy of Marketing Science Review 1-16.

-        HUNGER, D.J., and L.T. WHEELEN. 2011. Essentials of Strategic Management. New Jersey: Prentice Hall.

-        2022. Iraq Business News. January 11. Accessed January 21, 2022. https://www.iraq-businessnews.com/list-of-international-oil-companies-in-iraqi-kurdistan/.

-        J, Barney. 1991. "Firm Resources and Sustained Competitive Advantage." Journal of Management 99-120.

-        James Chen. 2021. Investopedia. December 27. Accessed January 22, 2022. https://www.investopedia.com/terms/e/energy_sector.asp.

-        KIIRU, G., IRAVO, M., OLOKO, M. 2014. "Mediating Effect of Competition Orientation on The Relationship Between Dynamic Capabilities And Competitive Advantage of Small and Medium Retail Enterprises In Kenya." Research Journal of Management 1-12.

-        KIMURA, D. 2014. "Effects of Porter's Generic Competitive Strategies on the Performance of Savings and Credit Cooperatives (Saccos) in Murang'a County, Kenya." IOSR Journal of Business and Management 93-105.

-        KISAKA, N.S., and B.W OKIBO. 2014. "Effect of Porter’s Generic Strategies on Expansion of Academic programmes for competitive advantage in Keyna." International Journal of Research in Management and Business Studies 93-97.

-        KOTHA, S., and B VADLAMANI. 1995. " Assessing generic strategies: an empirical investigation of two competing typologies in discrete manufacturing industries." Strategic Management Journal 75-83.

-        Kristen Martinus, Matthew Tonts. 2015. "Powering the World City System: Energy Industry Networks and Interurban connectivity." Environment and Planning 1505-1506.

-        LOCKAMY A., SMITH W. 1997. "A strategic alignment approach for effective business process reengineering: linking strategy, processes and customers for competitive advantage." International Journal of Production Economics 141-153.

-        M.E, Porter. 1997. "Competitive Strategy Measuring Excellence." Emerald Group Publishing 12-17.

-        M.M, Ogot. 2012. "A Generic Competitive Business Strategies Typology for Micro Enterprises." European Journal of Business and Management 98-109.

-        MAHDI, R.O., ALMSAFIR, K.M, YAO, L. 2011. "The role of knowledge and knowledge management in sustaining competitive advantage within organizations." African Journal of Business Management 9912-9931.

-        MARTA PERIS-ORTIZ, M, JOSE ALVAREZ-GARCIA, J, RUEDA-ARMENGOT. 2015. Achieving Competitive Advantage through Quality Management. Switzerland: Springer International Publishing.

-        Martin, Jeffrey. 2020. World Economic Forum. January 16. Accessed January 21, 2022. https://www.weforum.org/agenda/2020/01/energy-transition-private-sector-climate/.

-        Masterson, Victoria. 2021. World Economic Forum. July 5. Accessed January 21, 2022. https://www.weforum.org/agenda/2021/07/renewables-cheapest-energy-source/.

-        Miller D, P.H Friesen. 1986a. "Porter's (1980) generic strategies and performance: An empirical examination with American data. Organization Studies," 37-55.

-        MILLER, A., and G.G DESS. 1993. "Assessing Porter's 1980 model in terms of its generalizability, accuracy and simplicity.". Journal of Management Studies 553-585.

-        MILLER, D. 1992. "The Generic Strategy Trap." Journal of Business Strategy 37-41.

-        Murray, Alan. I. 1988. "A Contingency View of Porter's "Generic Strategies"." Academy of Management Review 394.

-        MUTUNGA L.S., MINJA D. 2014. " Generic Strategies Employed By Food and Beverage Firms in Kenya and Their Effects on Sustainable Competitive Advantage." International Journal of Business and Management Review 1-15.

-        NAYYAR, R.P. 1993. "On the measurement of competitive strategy: evidence from a large multiproduct U.S. firm." Academy of Management Journal 1652-1669.

-        OTIENO, S., M.H. BWISA, and M. J. KIHORO. 2012. "Influence of Strategic Orientation on Performance of Kenya’s Manufacturing Firms Operating Under East African Regional Integration." International Journal of Business and Social Science 46-55.

-        PALEY, N. 2005. The Manager’s Guide to Competitive Marketing Strategies. London: Thorogood.

-        Peters, L.M., and S Zelewski. 2013. "Competitive Strategies their Relevance for Sustainable development in the food industry." Journal of Management and Sustainability 148-157.

-        Porter, M.E. 1980. Competitive Strategy: Techniques for analysing industries and competitors. New York: New York: Free Press.

-        Porter, Michael E. 1985. "Competitive Advantage." The Free Press. New York. 11-15.

-        Porter, Micheal E. n.d. "Industry Segmentation and Competitive Advantage." In Competitive Advantage: Creating and Sustaining Superior Performance, by Micheal E Porter, 231-269. New York, London, Toronto, Sydney, Singapore, Tokyo: Free Press.

-        Society, National Geographic. n.d. Natural Geographic Society. Accessed January 22, 2022. https://www.nationalgeographic.org/encyclopedia/non-renewable-energy/#:~:text=Resource%20Types&text=Resources%20are%20characterized%20as%20renewable,include%20coal%20and%20natural%20gas.

-        Sumer, K. Bayraktkar, A.C. 2012. "Business Strategies and Gaps in Porter's Topology: A Literature Review." Journal of Management 100-119.

-        Team, Mind Tools Content. n.d. Mind Tools. Accessed January 26, 2022. https://www.mindtools.com/pages/article/newSTR_82.htm.

-        Twin, Alexandra. 2021. Investopedia. March 08. Accessed January 25, 2022. https://www.investopedia.com/terms/c/competitive_advantage.asp#:~:text=Competitive%20advantage%20refers%20to%20factors,compared%20to%20its%20market%20rivals.

-        WILKIE, C.H., W.L. JOHNSON, and L. WHITE. 2010. "Strategies used to defend pharmaceutical brands from generics." European Journal of Marketing 1195-1214.

-        WRIGHT, P., A. NAZERMZADEH, J. PARNELL, and A LADO. 1991. " Comparing three different theories of competitive strategies." Industrial Management 12-16.