Firms in the manufacturing sectors are facing the most inevitable challenge to
decide whether products to make through internal effort, or solicit from outside
independent suppliers with a high degree of economies-of-scale to enhance
efficiency and productivity. Efficiency and productivity thru reducing costs,
maintain high quality, flexibility, improved delivery dependability, and prompt
quick response enable a manufacturing firm to achieve competitiveness and
performance. To achieve competitive advantage previous researches used two
typologies: cost-leadership strategy and differentiation strategy. Align with the
previous researches this study has reviewed previous literature on costleadership
strategy and differentiation strategy to achieve firm performance.
Based on the Resource Based View (RBV) this study has developed a conceptual
framework to enhance manufacturing firm performance through competitive
strategy.
