Cost leadership strategy thrives on operational efficiency and convey strategic advantage on firms in price-sensitive markets. It emphasizes efficient utilization of resources. This study based on data obtained on customer service centres of four telecommunication firms used data envelopment analysis to determine operational efficiency of these facilities and compare differences in efficiencies between these firms. Results of data analysis indicate that substantial degree of inefficiency exist in these facilities with 64.9% of the facilities obtaining less than 0.7(CRS) efficiency scores while 59.5% of the facilities have less than 0.8 efficiency ratings under the variable returns to scale assumptions (VRS). In addition, comparisons of service centres efficiencies on the strength of locations indicate that significant difference exists in the efficiency of these facilities; however, only minimal changes in efficiency scores seem to exist between service providers. It seems advantageous to explore the effect of size on efficiencies of these facilities. In addition, performance benchmarking, resource re-allocation and managerial creative actions that raised output profile and deepen use of available resources may be required to make these customers service centres positive contributors to competitive edge, reputation and image of these firms.
Keywords: Customer service, data envelopment analysis, technical efficiency, variable returns to scale