The Effect of Innovation and Integrated Cost Leadership Strategy on Competitive Advantage container depots. MTCon, as a container depot company in business for over 20 years, must be able to improve business profitability through customer satisfaction. To win the competition in the industry, MTCon must increase its superiority by creating better economic value compared to its competitors. This research analyzed the influence of innovation, cost leadership strategy and customer focus on competitive advantage and then its impact on customer satisfaction. The data was collected using questionnaires from 48 MTCon corporate clients who made at least 5 transactions in 2016. The inferential statistical analysis of this research used path analysis to know the importance of the impact of mediation. The results showed that innovation, cost leadership strategy and customer focus have a positive and significant impact on competitive advantage. Similarly, competitive advantage, innovation and cost leadership strategy have a positive and significant impact on customer satisfaction. But customer orientation has no significant effect on customer satisfaction. Furthermore, innovation and cost leadership strategy have a positive and significant impact on customer satisfaction through competitive advantage as an intervening variable, while customer orientation has no significant effect on customer satisfaction. customer satisfaction through competitive advantage as an intermediary variable. Foreign trade increasingly plays a role in the growth and development of a country's economy, especially countries that adopt an open economic system like Indonesia. The growth of foreign trade activities itself has a multiplier effect on the growth and development of businesses around the port area, among which is the container depot industry. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essay Regulation No. PM 83 of 2016 of the Minister of Transport of the Republic of Indonesia regarding the implementation and Container depot operation explains that container depots are a place inside or outside the port working environment area (DLKr) that functions for storage, stacking, cleaning/washing, l maintenance, container repair, stuffing, stripping and other activities promoting smooth handling of container contents (full) and/or empty containers (empty). The development of the container depot sector has created increasingly strong commercial competition, as evidenced by the Belawan port area where until the end of 2016, 15 container depot companies were operating in Belawan. More than 50% of the players in the container depot industry started their business above 2000. Belawan Branch of PT Masaji Tatanan Container or known as Depo MTCon is one of the subsidiaries of PT. Samudera Indonesia, Tbk, which is also one of the players in the oldest container depot industry in Belawan, must be able to compete to benefit from customer satisfaction. According to Kotler and Armstrong (2005), customer satisfaction is a level where a product's performance estimates are able to meet buyers' expectations. By achieving a high level of satisfaction, the company will be able to retain its customers. This is the key for the companyexists, because if the customer leaves (defection), the existence of the company is no longer necessary. The existence of intense competition in the container depot services industry will directly or indirectly force all players in the industry to strive for the best organizational performance. Winning the competition must be done by increasing the competitive advantage. Competitive advantage is the result of implementing a strategy of integrating, building and configuring various internal and external competencies of the company for the creation or growth of wealth over time (Aji , 2015). A company is said to have a competitive advantage if it is able to create greater economic value than its competitors. Economic value is the difference between the benefits experienced by customers who purchase a product at full price to obtain the product. To be able to create a sustainable competitive advantage, a company must be able to define the right strategy. The choice of this strategy must be adapted to the form and conditions of the competition itself. The factors that influence the choice of strategy must also be adjusted to the desires of the market, so that the right value is obtained according to the desires of the client. The value of these benefits can be measured by their uniqueness, robustness, hard-to-imitate, hard-to-replace, and conformity to market tastes. The Belawan branch of MTCon has carried out several innovations, notably on the products and services provided and innovations on the methods or procedures applied. However, there are still customer complaints regarding MTCon's depot service, both in terms of field service, administrative services, financial services, etc., where in 2016, as documented by customer service of MTCon's Belawan branch, there were at least 129 customer frequencies. complaints filed formally. This will certainly be a concern so that innovation can take place continuously. In addition to being able to innovate and adapt to a dynamic environment, companies must also be cost-leading, including becoming low-cost producers to produce similar products or striving to produce certain valuable activities with lower cumulative costs than businesses. its competitors. Costs generally affect prices: the more the company is able to produce at the lowest cost, the more it is able to offer the best price or offer additional benefits beyond the basic benefits not provided by its competitors. Companies must therefore be as close to the market as possible and apply a market orientation. Lukas & Ferrell (2000) in Prakosa (2006) stated that market orientation is an orientation concept that focuses on creating high values among consumers, where market orientation consists of 3 behavioral components, namely customer orientation, competitor orientation (competitor orientation) and cross-functional coordination (coordination between internal functions of the company). Among these three behaviors, customer orientation is the most important factor in creating superior value for customers to increase value to win the competition. The essence of formulating a strategy is to beat the competition. Now is not the time for leaders to only complain about tight competition, because tough competition is not a coincidence or bad luck. Tight competition is a reality that must be faced to gain market share. We therefore need to think about the right strategy to beat the competition. This study aims to determinethe effect of innovation, cost leadership strategy and customer focus on competitive advantage, as well as its impact on customer satisfaction of Belawan Branch MTCon Container Depot so that the right competitive strategy can be obtained to win the competition in the container depot industry in Belawan. Customer SatisfactionA business is an organization that transforms changes in expertise and economic resources into products (goods or services) to satisfy or meet the needs of customers in the hope of generating profits for their owners. Satisfaction is a positive feeling towards the performance of the products or services consumed. In other words, the product performance (perceived performance) received is capable of meeting the buyer's expectations (Kotler and Armstrong, 2005). Buyer expectation is a condition desired by the customer if he purchases or consumes a product or service offered by the supplier. This expectation is determined by the buyer before purchasing the product, and evaluated after purchasing or consuming the product. The measurement of satisfaction according to Kabir (2016) in his research uses 6 evaluation factors, namely: The impact of the physical environment, which includes the completeness, capacity and quality of facilities and infrastructure global owned by the service provider company. Convenience (comfort level) felt by the customer when consuming the service product. Price and value which is the level of compatibility between the price and the value obtained by the customer. Order accuracy (order accuracy), which is the correctness of the service in accordance with the order given by the customer. Customer-oriented technology, i.e. the suitability of the technology used, whether the customer is able to handle/use/feel the technology correctly. Speed of service, i.e. the time it takes for the customer to order until the services provided are complete. Satisfaction will also be felt by customers if the company is able to create high economic value of its products. Economic value is the difference between the benefits received by customers and the overall costs incurred to obtain these products. Companies that are able to create better economic value than their competitors are companies that have competitive advantages. Competitive advantage, innovation, cost leadership strategy and customer focus Competitive advantage is the result of implementing a strategy of integrating, building and configuring various internal and external competencies of the company for wealth creation or growth over time. According to Barney (1991) to achieve a sustainable competitive advantage, the company must meet 4 competence criteria, among others: Valid, namely the excellence of the company to be able to exploit opportunities and neutralize threats from the external environment in order to increase customers. value. Unique (consciousness) i.e. excellence where few competitors have similarities with the company. Imitation is an advantage when competitors cannot develop or copy the same thing as the company. It is difficult to replace (substitutability) what constitutes an advantage when there is no strategic capacity identical to that of its competitors. Hansen et al (2008) in Adriansyah and Afiff (2015) state that competitive advantage will be achieved by developing regulatory means for businesses to manage their resources. Developing this arrangement requires a creative effort called innovation. Innovation is a source of competitive success that consists of an effortaiming to create a commercial product from an invention, making the product more useful and making it more commercially successful for the company. Competitive advantage can also be achieved through several strategies, including cost leadership strategy. If the company is able to create an effective cost leadership strategy, it will be able to become a low-cost producer, characterized by prices in line with the buyer's expectations so that the buyer is satisfied with the price offered by the buyer. 'business. Thanks to the cost leadership strategy, the company is also able to provide high-value benefits to customers despite cost control. Hunger and Wheelen (2003) argue that cost leadership targets large markets and requires “aggressively building efficient, large-scale facilities, reducing prices.” , control costs and costs strictly, avoid marginal customers and minimize other costs. Customer centricity is an adequate and focused understanding of the buyer so that superior values can be consistently delivered. The agreement in question covers not only the current buyer's expected value but also projections of the expected value in the future, so it covers the buyer's entire value chain. A continuous process will create excellence for the business in the long term. Customer and competitor oriented is a method that can be used if businesses want to excel in competitions. Customer centricity can also be defined as an effort to help customers make appropriate purchasing decisions to satisfy their needs. In other words, the essence of customer centricity is knowing how to look beyond what the customer expects. To do this, a manager must be able to collect, analyze, act and disseminate information on the needs and desires of customers. This information serves as the basis for creating, acquiring and transferring knowledge, as well as changing employee behavior to satisfy customers. The results of the study provide empirical evidence that innovation has a positive and significant effect on competitive advantage, as mentioned by Hansen et al (2008) in Adriansyah and Afiff (2015), according to which competitive advantage is achieved through the creative development of how to regulate businesses. resources. Creative development is what we call innovation. Similarly, in a research review conducted by Dustin et al (2014), they stated that by motivating innovation, the company will be able to increase its sustainable competitive advantage. If the company innovates better, the higher its competitive advantage. As Bowonder et al. (2010) assert that innovation can create differentiating factors that allow companies to excel in the face of competition. The results of this study also provide empirical evidence demonstrating that cost leadership strategies have a positive and significant effect on competitive advantage. This supports Porter's (1993) statement that cost leadership strategy aims to create competitive advantage with lower cumulative costs in performing valuable activities compared to the cumulative costs of competitors. Cost leadership strategy involves enabling companies to produce at the lowest price for the same level of quality or at the same price for the highest quality. Where the cost leadership strategy aims for companies to be able to become producers with the lowest costs, while being able to provide high values/benefits despite cost control..

Essay / The Effect of Innovation and Integrated Cost Leadership Strategy on Competitive Advantage container depots. MTCon, as a container depot company in business for over 20 years, must be able to improve business profitability through customer satisfaction. To win the competition in the industry, MTCon must increase its superiority by creating better economic value compared to its competitors. This research analyzed the influence of innovation, cost leadership strategy and customer focus on competitive advantage and then its impact on customer satisfaction. The data was collected using questionnaires from 48 MTCon corporate clients who made at least 5 transactions in 2016. The inferential statistical analysis of this research used path analysis to know the importance of the impact of mediation. The results showed that innovation, cost leadership strategy and customer focus have a positive and significant impact on competitive advantage. Similarly, competitive advantage, innovation and cost leadership strategy have a positive and significant impact on customer satisfaction. But customer orientation has no significant effect on customer satisfaction. Furthermore, innovation and cost leadership strategy have a positive and significant impact on customer satisfaction through competitive advantage as an intervening variable, while customer orientation has no significant effect on customer satisfaction. customer satisfaction through competitive advantage as an intermediary variable. Foreign trade increasingly plays a role in the growth and development of a country's economy, especially countries that adopt an open economic system like Indonesia. The growth of foreign trade activities itself has a multiplier effect on the growth and development of businesses around the port area, among which is the container depot industry. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essay Regulation No. PM 83 of 2016 of the Minister of Transport of the Republic of Indonesia regarding the implementation and Container depot operation explains that container depots are a place inside or outside the port working environment area (DLKr) that functions for storage, stacking, cleaning/washing, l maintenance, container repair, stuffing, stripping and other activities promoting smooth handling of container contents (full) and/or empty containers (empty). The development of the container depot sector has created increasingly strong commercial competition, as evidenced by the Belawan port area where until the end of 2016, 15 container depot companies were operating in Belawan. More than 50% of the players in the container depot industry started their business above 2000. Belawan Branch of PT Masaji Tatanan Container or known as Depo MTCon is one of the subsidiaries of PT. Samudera Indonesia, Tbk, which is also one of the players in the oldest container depot industry in Belawan, must be able to compete to benefit from customer satisfaction. According to Kotler and Armstrong (2005), customer satisfaction is a level where a product's performance estimates are able to meet buyers' expectations. By achieving a high level of satisfaction, the company will be able to retain its customers. This is the key for the companyexists, because if the customer leaves (defection), the existence of the company is no longer necessary. The existence of intense competition in the container depot services industry will directly or indirectly force all players in the industry to strive for the best organizational performance. Winning the competition must be done by increasing the competitive advantage. Competitive advantage is the result of implementing a strategy of integrating, building and configuring various internal and external competencies of the company for the creation or growth of wealth over time (Aji , 2015). A company is said to have a competitive advantage if it is able to create greater economic value than its competitors. Economic value is the difference between the benefits experienced by customers who purchase a product at full price to obtain the product. To be able to create a sustainable competitive advantage, a company must be able to define the right strategy. The choice of this strategy must be adapted to the form and conditions of the competition itself. The factors that influence the choice of strategy must also be adjusted to the desires of the market, so that the right value is obtained according to the desires of the client. The value of these benefits can be measured by their uniqueness, robustness, hard-to-imitate, hard-to-replace, and conformity to market tastes. The Belawan branch of MTCon has carried out several innovations, notably on the products and services provided and innovations on the methods or procedures applied. However, there are still customer complaints regarding MTCon's depot service, both in terms of field service, administrative services, financial services, etc., where in 2016, as documented by customer service of MTCon's Belawan branch, there were at least 129 customer frequencies. complaints filed formally. This will certainly be a concern so that innovation can take place continuously. In addition to being able to innovate and adapt to a dynamic environment, companies must also be cost-leading, including becoming low-cost producers to produce similar products or striving to produce certain valuable activities with lower cumulative costs than businesses. its competitors. Costs generally affect prices: the more the company is able to produce at the lowest cost, the more it is able to offer the best price or offer additional benefits beyond the basic benefits not provided by its competitors. Companies must therefore be as close to the market as possible and apply a market orientation. Lukas & Ferrell (2000) in Prakosa (2006) stated that market orientation is an orientation concept that focuses on creating high values among consumers, where market orientation consists of 3 behavioral components, namely customer orientation, competitor orientation (competitor orientation) and cross-functional coordination (coordination between internal functions of the company). Among these three behaviors, customer orientation is the most important factor in creating superior value for customers to increase value to win the competition. The essence of formulating a strategy is to beat the competition. Now is not the time for leaders to only complain about tight competition, because tough competition is not a coincidence or bad luck. Tight competition is a reality that must be faced to gain market share. We therefore need to think about the right strategy to beat the competition. This study aims to determinethe effect of innovation, cost leadership strategy and customer focus on competitive advantage, as well as its impact on customer satisfaction of Belawan Branch MTCon Container Depot so that the right competitive strategy can be obtained to win the competition in the container depot industry in Belawan. Customer SatisfactionA business is an organization that transforms changes in expertise and economic resources into products (goods or services) to satisfy or meet the needs of customers in the hope of generating profits for their owners. Satisfaction is a positive feeling towards the performance of the products or services consumed. In other words, the product performance (perceived performance) received is capable of meeting the buyer's expectations (Kotler and Armstrong, 2005). Buyer expectation is a condition desired by the customer if he purchases or consumes a product or service offered by the supplier. This expectation is determined by the buyer before purchasing the product, and evaluated after purchasing or consuming the product. The measurement of satisfaction according to Kabir (2016) in his research uses 6 evaluation factors, namely: The impact of the physical environment, which includes the completeness, capacity and quality of facilities and infrastructure global owned by the service provider company. Convenience (comfort level) felt by the customer when consuming the service product. Price and value which is the level of compatibility between the price and the value obtained by the customer. Order accuracy (order accuracy), which is the correctness of the service in accordance with the order given by the customer. Customer-oriented technology, i.e. the suitability of the technology used, whether the customer is able to handle/use/feel the technology correctly. Speed of service, i.e. the time it takes for the customer to order until the services provided are complete. Satisfaction will also be felt by customers if the company is able to create high economic value of its products. Economic value is the difference between the benefits received by customers and the overall costs incurred to obtain these products. Companies that are able to create better economic value than their competitors are companies that have competitive advantages. Competitive advantage, innovation, cost leadership strategy and customer focus Competitive advantage is the result of implementing a strategy of integrating, building and configuring various internal and external competencies of the company for wealth creation or growth over time. According to Barney (1991) to achieve a sustainable competitive advantage, the company must meet 4 competence criteria, among others: Valid, namely the excellence of the company to be able to exploit opportunities and neutralize threats from the external environment in order to increase customers. value. Unique (consciousness) i.e. excellence where few competitors have similarities with the company. Imitation is an advantage when competitors cannot develop or copy the same thing as the company. It is difficult to replace (substitutability) what constitutes an advantage when there is no strategic capacity identical to that of its competitors. Hansen et al (2008) in Adriansyah and Afiff (2015) state that competitive advantage will be achieved by developing regulatory means for businesses to manage their resources. Developing this arrangement requires a creative effort called innovation. Innovation is a source of competitive success that consists of an effortaiming to create a commercial product from an invention, making the product more useful and making it more commercially successful for the company. Competitive advantage can also be achieved through several strategies, including cost leadership strategy. If the company is able to create an effective cost leadership strategy, it will be able to become a low-cost producer, characterized by prices in line with the buyer's expectations so that the buyer is satisfied with the price offered by the buyer. 'business. Thanks to the cost leadership strategy, the company is also able to provide high-value benefits to customers despite cost control. Hunger and Wheelen (2003) argue that cost leadership targets large markets and requires “aggressively building efficient, large-scale facilities, reducing prices.” , control costs and costs strictly, avoid marginal customers and minimize other costs. Customer centricity is an adequate and focused understanding of the buyer so that superior values can be consistently delivered. The agreement in question covers not only the current buyer's expected value but also projections of the expected value in the future, so it covers the buyer's entire value chain. A continuous process will create excellence for the business in the long term. Customer and competitor oriented is a method that can be used if businesses want to excel in competitions. Customer centricity can also be defined as an effort to help customers make appropriate purchasing decisions to satisfy their needs. In other words, the essence of customer centricity is knowing how to look beyond what the customer expects. To do this, a manager must be able to collect, analyze, act and disseminate information on the needs and desires of customers. This information serves as the basis for creating, acquiring and transferring knowledge, as well as changing employee behavior to satisfy customers. The results of the study provide empirical evidence that innovation has a positive and significant effect on competitive advantage, as mentioned by Hansen et al (2008) in Adriansyah and Afiff (2015), according to which competitive advantage is achieved through the creative development of how to regulate businesses. resources. Creative development is what we call innovation. Similarly, in a research review conducted by Dustin et al (2014), they stated that by motivating innovation, the company will be able to increase its sustainable competitive advantage. If the company innovates better, the higher its competitive advantage. As Bowonder et al. (2010) assert that innovation can create differentiating factors that allow companies to excel in the face of competition. The results of this study also provide empirical evidence demonstrating that cost leadership strategies have a positive and significant effect on competitive advantage. This supports Porter's (1993) statement that cost leadership strategy aims to create competitive advantage with lower cumulative costs in performing valuable activities compared to the cumulative costs of competitors. Cost leadership strategy involves enabling companies to produce at the lowest price for the same level of quality or at the same price for the highest quality. Where the cost leadership strategy aims for companies to be able to become producers with the lowest costs, while being able to provide high values/benefits despite cost control..

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