Cost Reduction Approaches in Service Bussinesses

Proceedings of The 12th International Conference on New Ideas in Management, Economics and Accounting

Year: 2023



Cost Reduction Approaches in Service Bussinesses

Sirijin Wongjarupun,Preeyanuch Apibunyopas



In the highly competitive service industry, effective cost control and reduction are crucial for the success of service businesses. Efficient management of costs not only ensures operational efficiency but also contributes to profitability, competitive advantages, and customer satisfaction. This study aims to investigate the various cost reduction approaches adopted by service businesses. Data gathered from magazines, business news sources, and company websites during the years 2021 and 2022 were analyzed to explore the cost reduction strategies implemented by various service providers, specifically excluding methods such as layoffs and the utilization of technology like AI robots. The focus is on extracting information regarding service types and their corresponding cost reduction approaches, which will then be organized into a contingency table. Correspondence analysis will be utilized to identify the relationship between service types and cost reduction approaches. The anticipated outcome of this study is to provide a practical reflection of the current cost reduction practices prevalent in primarily the service industry. The findings will have significant implications as they can serve as guidance for service businesses, enabling them to apply effective cost reduction methods, minimize expenses, and prevent wastage. By implementing these strategies, service businesses can optimize their operations, reduce costs, and improve overall financial performance.

keywords: cost control, cost reduction approaches, operational efficiency, service types, service businesses