Cost Reduction Strategies and Growth of FMCG Companies in Kyoto, Japan


  • Haruto Kottika Kohana Doshisha University
  • Asahi Yuito Edman Doshisha University
  • Hiroto Hinata Haralayya Doshisha University



Cost reduction is a deliberate strategy to save expenses. Cost reduction is the practice of lowering expenses made by an organization in order to increase profits and ensure the business grows. Using cost-reducing strategies may help even profitable firms generate a much larger total profit from their goods or services. Cost reduction measures should be used for a company to experience growth in terms of increased profits. Many cost reduction strategies fall short because they are based on false assumptions. The study found that companies' managements are getting more and more cost-conscious nowadays, and they are always looking for innovative methods to reduce costs and cut wastages. Prices for products, raw materials, and services are steadily rising and because the producers and manufacturer's concern is to generate profit, they sometimes employ low quality materials in their production in an effort to cut costs and increase profits. Moreover, given the increased competition, majority of manufacturers have decided that it is prudent to make or package a quality product in order to raise their profit margin. Profitability and cost reduction are the cornerstones of any company and they consequently represent the bottom line for every company. The study concluded that a cost reduction approach directly affects Japan's improvement in the growth of fast-moving commodities. Every department in a firm, notably the manufacturing department, should use realistic standard cost reduction techniques, and the cost reduction plan should be effectively implemented to ensure that the quantities of produced items are accurately recorded. It is important for FMCG companies to carefully consider the impact of cost reduction strategies on their operations and ensure that they do not compromise on quality or customer satisfaction. It is recommended that manufacturing companies should use value analysis to cut and remove extra expenses related to products. Companies should regularly analyze their operational process to identify and minimize costs.

Keywords: Cost Reduction Strategies, Growth, Companies, Japan

Author Biographies

Haruto Kottika Kohana, Doshisha University

Doshisha University

Asahi Yuito Edman , Doshisha University

Doshisha University

Hiroto Hinata Haralayya, Doshisha University

Doshisha University


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How to Cite

Kohana, H. K. ., Edman , A. Y. ., & Haralayya, H. H. . (2023). Cost Reduction Strategies and Growth of FMCG Companies in Kyoto, Japan. Journal of Strategic Management, 7(2), 26–36.