Effect of Porter's Generic Competitive Strategy and Service Quality on Customer Satisfaction and Competitive Advantage

In a Small-Scale Clothing Business at the Shopee MSME Campus in Malang

Abstract

The research conducted has not found or no one has conducted research on "The Effect of Porter's Generic Competitive Strategy and Service Quality on Customer Satisfaction and Competitive Advantage". This study uses a quantitative explanatory research type with a sample of 96 owners or managers of small and medium clothing businesses with a random sample technique. Statistical analysis of validity tests, reliability tests, path model hypothesis tests using SPSS. The results show that the instrument is proven valid and reliable, hypothesis testing proves that Porter's generic competitive strategy has a significant effect on customer satisfaction and competitive advantage. Service quality has a significant effect on customer satisfaction and competitive advantage and customer satisfaction also has a significant effect on competitive advantage. Given the strong influence of service quality and Porter's generic competitive strategy on competitive advantage, low cost strategies, differentiation strategies, focus strategies and service quality must be maintained and improved. An important step is with the RBV theory that "sustainable competitive advantage comes from unique, valuable, rare, difficult to imitate, and non-substitutable internal resources and capabilities, viewing the capabilities of physical assets, humans, technology, and reputation as the foundation for beating competitors, not just market position.