Strategic Management of Costs: A New Tool to Gain Competitive Advantage

Abstract

In a dynamic business environment that includes rapid change, the powerful extension of technological development, increased competition, globalization, market segmentation, unsustainable demand, the importance of information, and changing business processes, cost management has become more critical, dynamic, and necessary than ever before. In order to rescue itself from the claws of competition today, every firm must achieve a competitive advantage. Managers need to think competitively and devise and execute an effective strategy. The selection and implementation of an appropriate competitive strategy are the keys to both the short-term and the long-term success of the firm. The purpose of this study is to identify and empirically test the role of cost management tools in achieving the strategic objectives of Kosovo firms.