Investigation in the relationship between competition, quality, price, market share, and financial efficiency in the poultry industry

Competition, a recognized catalyst for improving company performance, has led policymakers to endorse competitive business strategies. However, implementing these strategies without compromising efficiency is crucial. In manufacturing, a known trade-off exists between competition and key business behaviours, such as market share, price, and quality, which impact financial efficiency. This research, unique in its approach, investigates the influence of competition on business conduct and performance, employing a novel model to simulate these effects. The quantitative method, involving surveys from 382 participants across 115 companies in 23 countries, has provided profound insights into the dynamics of competition and performance on a global scale. These findings support and challenge existing theories, offering a fresh perspective. For instance, it was discovered that competition has a differential impact on various aspects such as pricing, market share, sensory and nutritional quality, and financial efficiency. This nuanced understanding of competition's effects can guide businesses' strategic decision-making. This research introduces a model that assesses the relationship between competition and combined business factors, allowing for adjustable factor weights. This model reveals that intense competition generally enhances overall business performance when weights are equally distributed, although outcomes vary with weight assignments. These theoretical insights have practical implications, empowering manufacturers and policymakers to make informed decisions about competition-related trade-offs confidently. Additionally, this study examines various counter-competition strategies and their effectiveness in enhancing managerial and policy decision-making. The findings align with and challenge aspects of the Structure-Conduct-Performance (SCP) theory, which posits that market structure influences business conduct and, through conduct, affects business performance. Notably, financial efficiency appears more influenced by mediator factors like market share, price, and quality rather than direct competition. Overall, the research supports SCP theory, particularly in the poultry market, and underscores the importance of strategic weight allocation in policy development. With its practical implications, this study offers valuable guidance for designing effective counter-competition strategies and managing trade-offs, thereby aiding managers and policymakers in making informed decisions.