Open AccessCompetitive Environment Analysis in Global Retail Companies Operation Strategy: A Data Envelopment Analysis (DEA) Based Approach
Author(s) -
Zainal Putra,
Muzakir Muzakir
Publication year - 2020
Publication title -
afebi management and business review
Language(s) - English
Resource type - Journals
eISSN - 2548-5318
pISSN - 2548-530X
DOI - 10.47312/ambr.v4i02.286
Subject(s) - data envelopment analysis , business , return on equity , return on assets , current asset , revenue , return on investment , profit (economics) , operational efficiency , equity (law) , asset (computer security) , industrial organization , balanced scorecard , finance , profitability index , economics , marketing , working capital , microeconomics , computer science , mathematical optimization , mathematics , computer security , political science , law
This research aims to find out the most competitive retail company operating in current global market based on the perspective of efficiency. A well-performed company is the company that is efficient in its operations. By using Data Envelopment Analysis (DEA) approach, this research differs from prior research because we used multivariable inputs, namely: asset, operational expense and the number of employees. The output variables used in this research are: total revenue, net profit, return on equity (ROE), return on assets (ROA), return on investment (ROI), dividend yield ratio and asset turnover ratio. The analysis results shows that six retail companies are “efficient” in its operation (efficiency score of 1.00), namely: Carrefour, Costco, Kroger Company, Home Depot Inc, JD.com Inc Adr and Alibaba Group Holdings Ltd ADR. Therefore, these companies are considered the most competitive in its operation strategy in the current global market, whereas there are four retail companies falls into category of “inefficient” (efficiency score < 1.00), namely: Walmart, Amazon.com Inc, Tesco PLC and Walgreens Boots Alliance Inc.