21, February 2026

Strategic Cost Management as a Tool for Competitive Advantage: A Conceptual Review

VOLUME-10; ISSUE-2; FEB-2026

Author(s): Dr Raghuveer R

Authors Affiliations:

Faculty, MBA, Yuvarajas College (Autonomous), University of Mysore, Mysore

DOIs:10.2017/IJRCS/202602005     |     Paper ID: IJRCS202602005


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In today’s highly competitive and dynamic business environment, organizations are under constant pressure to manage costs strategically while simultaneously creating value for customers. Traditional cost management approaches, which focus primarily on cost control and financial reporting, are often inadequate for supporting long-term competitive advantage. Strategic Cost Management (SCM) has emerged as an integrated approach that aligns cost information with organizational strategy, value creation, and competitive positioning. This study presents a conceptual review of existing literature on Strategic Cost Management as a tool for achieving competitive advantage. Based on secondary data, the study reviews scholarly articles, books, and conceptual frameworks related to SCM techniques such as value chain analysis, activity-based costing, target costing, life-cycle costing, and benchmarking. Content analysis is employed to synthesize key themes including strategic relevance, cost driver analysis, and competitive outcomes. The review reveals that Strategic Cost Management extends beyond cost reduction by emphasizing value enhancement, strategic decision-making, and sustainable competitive advantage. The study concludes that effective implementation of SCM depends on organizational context, strategic orientation, and managerial capability. The paper contributes to the literature by consolidating existing knowledge and highlighting the role of SCM as a critical managerial tool in contemporary business strategy.

Strategic Cost Management; Competitive Advantage; Value Chain Analysis; Activity-Based Costing; Target Costing; Strategic Decision-Making; Cost Driver Analysis; Value Creation

Dr Raghuveer R (2026); Strategic Cost Management as a Tool for Competitive Advantage: A Conceptual Review, International Journal of Research Culture Society,    ISSN(O): 2456-6683,  Volume – 10,   Issue –  2,  Available on – https://ijrcs.org/

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