The study of cost reduction opportunity : empirical evidence from a cemented carbide company of Chinese company

This thesis investigates the cost reduction opportunities in a Chinese cemented carbide company operating in Thailand. The study aims to identify the primary cost drivers, challenges, and effective strategies that can be implemented to enhance cost efficiency and overall competitiveness. The research employs a qualitative approach, utilizing semi-structured interviews with key personnel in the company, including senior management, finance executives, production managers, and procurement officers. The data collected is analyzed using thematic analysis, TOWS, and VRIO frameworks to provide a comprehensive understanding of the internal and external factors impacting cost management. The findings reveal that labor costs, logistics costs, procurement costs, energy costs, and marketing costs are the main areas where significant cost reduction opportunities exist. Effective strategies identified include implementing robust training programs, streamlining supply chain processes, adopting Just-In-Time (JIT) inventory systems, investing in energy-efficient machinery, and leveraging digital marketing channels. The study underscores the importance of a holistic approach to cost management, incorporating technological innovations, strategic partnerships, and continuous improvement practices. This research contributes to the academic literature by providing empirical evidence from the cemented carbide industry and offering practical recommendations for companies facing similar cost management challenges in international markets. The insights gained from this study can help businesses optimize their cost structures, enhance profitability, and achieve sustainable growth in the competitive global landscape.