Exploring the Impact of Cost Drivers and Quality Control on Profit Margin Optimization: A Qualitative Analysis of Knit RADIX in Bangladesh’s Apparel Industry

Abstract

This study investigates Exploring the Impact of Cost Drivers and Quality Control on Profit Margin Optimization: A Qualitative Analysis of Knit RADIX in Bangladesh’s Apparel Industry. The research adopts a qualitative design with a case study approach to gain in-depth insights into the perspectives of employees from the company’s people. This methodology ensures a comprehensive understanding of the research objectives. The study focuses on identifying Cost Drivers and Quality Control on Profit Margin Optimization. A purposive sampling technique was employed to select 10 participants, all of whom are directly involved in the companies. Data was collected through face-to-face interviews conducted over a one-week period (January 20, 2025, to January 30, 2025). The cross-sectional methodology allowed for the collection of data at a single point in time, providing a clear snapshot of the challenges and strategies in these critical areas. The study utilized ATLAS.ti 9 for thematic coding and qualitative data analysis, enabling the identification of patterns, interdependencies, and relationships between variables. Microsoft Excel was used for organizing data and generating visualizations to complement the qualitative findings. This integrated approach ensured robust and reliable analysis. Key findings reveal that the apparel industry in Bangladesh is a vital contributor to the country's economy, with exports accounting for a significant portion of national revenue. However, rising production costs, raw material price fluctuations, and quality compliance requirements pose ongoing challenges to apparel manufacturers. This study employs a qualitative research approach to examine how cost drivers and quality control impact profit margin optimization at Knit RADIX, a leading garment manufacturer in Bangladesh. Through interviews, surveys, and document analysis, key themes related to cost drivers, quality management, and strategic profit optimization are explored. This research focuses on perspectives from factory GM, production Team, quality teams, and Merchandizing team to gain in-depth insights into cost pressures and quality-related challenges. The findings highlight that material costs, operational overheads, production inefficiencies, and stringent quality control measures significantly influence the company's profitability. Additionally, strategies for mitigating costs and maintaining quality standards are discussed to provide a holistic understanding of profit margin optimization.