Cost management as a competitive advantage in banana producing companies: theoretical approach

Abstract

The banana sector is very important in the Ecuadorian economy, due to its foreign exchange, employment and family income, whose producers manage resources to integrate them into the production process. Being cost management part of management, which is supported by cost accounting to provide competitiveness, allowing it to be active, differentiate itself and sustain itself over time. Therefore, it is necessary to investigate cost management as a competitive advantage of banana producing companies in Ecuador, through a theoretical approach from the documentary review of primary and secondary sources, academic articles, texts, from business problems in the Last 5 years, the implemented strategies identified under Porter's concepts of competitive advantage. Where the relevant problems are the control of the production process in the information generated, having weaknesses when negotiating, in the same way when budgeting and the increase in costs due to the biosecurity measures implemented by the pandemic situation. Cost management is identified as a strategy for the search to reduce costs, presenting "cost leadership" as a competitive advantage and that after the pandemic they are focusing on the new strategy "differentiation" for innovation in production processes, for the quality of the product, the trend towards organic production, for the safety of the product, friendly to the environment, generating a responsibility with society, hence, both are present as a competitive advantage in the sector.