Competitive Environment Analysis in Global Retail Companies Operation Strategy: A Data Envelopment Analysis (DEA) Based Approach

Zainal Putra, Muzakir Muzakir


This research aims to  find out the most competitive retail company operating in current global market based on the perspective of efficiency. A well-performed company is the company that is efficient in its operations. By using Data Envelopment Analysis (DEA) approach, the input variables in this research are: asset, operational expense and the number of employees. The output variables used in this research are: total revenue, net profit, return on equity (ROE), return on assets (ROA), return on investment (ROI), dividend yield ratio and asset turnover ratio. The analysis results shows that six retail companies are “efficient” in its operation (efficiency score of 1.00) , namely; Carrefour, Costco, Kroger Company, Home Depot Inc, Inc Adr and Alibaba Group Holdings Ltd ADR. Therefore, these companies are considered the most competitive in its operation strategy in the current global market, whereas there are four retail companies falls into category of “inefficient” (efficiency score < 1.00), namely;  Walmart, Inc, Tesco PLC and Walgreens Boots Alliance Inc.


Competitive, DEA, Efficient, Retail

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